💸 The Tape

In a significant victory for local cannabis reform, a Texas judge has ruled that Dallas can continue implementing a voter-approved marijuana decriminalization law, rejecting a request from Republican Attorney General Ken Paxton to temporarily halt it. On Friday, 134th Civil District Court Judge Dale Tillery denied Paxton’s motion for a temporary injunction, allowing the policy—passed by over two-thirds of Dallas voters in November—to remain in effect as a lawsuit from the state progresses. The succinct one-page order emphasized that, after reviewing evidence and arguments, the court found no basis to block the measure at this stage.

The ruling is a setback for Paxton, who filed the lawsuit weeks after the vote, arguing that state law preempts local efforts to decriminalize marijuana. While the litigation is ongoing, Judge Tillery’s decision ensures that Dallas residents won’t face arrests or citations for possessing up to four ounces of cannabis, per the Dallas Freedom Act. This follows a Dallas Police Department directive last month aligning with the voter mandate, marking a shift away from criminalizing low-level possession in Texas’s third-largest city.

Dallas City Councilmember Adam Bazaldua hailed the decision, noting that it honors the “mandate” from voters tired of seeing Black and brown residents disproportionately targeted for a substance legal in over half the U.S. “It’s not for the Texas attorney general to overrule that vote,” Bazaldua said, praising the focus on redirecting police resources to serious crimes. Catina Voellinger of Ground Game Texas, which spearheaded the campaign, called it “a victory for the democratic process,” arguing that halting enforcement would have harmed the city.

Paxton’s legal challenge mirrors his efforts to overturn similar reforms in cities like Austin and San Marcos, where state district judges dismissed his lawsuits, and others like Elgin, which settled without implementing decriminalization. Despite Gov. Greg Abbott’s criticism of municipal reforms as “chaos,” he has acknowledged that jail time for marijuana possession is excessive—though he inaccurately claimed Texas had already decriminalized it. A new bill filed this week by a House leader could finally bring statewide change if passed.

The Dallas measure, backed by cannabis icon Willie Nelson, prohibits arrests or citations for misdemeanor possession unless tied to major felony probes and eliminates marijuana odor as probable cause for searches. As the case unfolds, the ruling reinforces a growing trend of local Texas cities pushing back against state resistance to cannabis reform.

📈 Dog Walkers.

Canopy Growth Establishes New ATM

What’s Going On Here: Canopy Growth Corporation announced a new at-the-market equity program on February 28, 2025, allowing it to raise up to US$200 million by selling common shares on Nasdaq and TSX. The funds will support investments, potential acquisitions, working capital, and debt repayment, possibly extending its term loan to 2027.

Why Should You Care: This move signals strategic financial flexibility in the evolving cannabis industry. Which should allow them to shore up the balance sheet and eat further into retiring their debt.

Rubicon Is In Expansion Mode

Whats Going On: Rubicon Organics’ $4.5 million purchase of MediPharm’s Hope, B.C. facility boosts its production capacity by 4,500 kg annually, enhancing scalability and market share. The deal strengthens Rubicon’s operational efficiency, and premium organic cannabis output, positioning it for growth in 2025, pending Q2 closure, without the costs of new construction.

Why You Should Care: The acquisition of this facility gives Rubicon room to expand in their backyard of B.C. to meet he growing demand for their premium organic products. Which will in turn enable them to continue to climb up the leaderboard in the Canada for overall marketshare in their respective verticals.

🗞️ The News

📺 YouTube

GTI Headlines TDR’s Biggest Developments in Cannabis This Week | Trade to Black

What we will cover:

✅ He’ll kick things off with Green Thumb Industries (OTCQX: GTBIF), the first of the major multi-state operators (MSOs) to report their Q4 and full-year 2024 earnings. GTI’s Q4 revenue came in at $294 million, marking a 5.8% year-over-year increase. Full-year revenue hit $1.1 billion, up 7.8% from 2023. They also posted $98 million in Adjusted EBITDA, $13 million in GAAP net income, and ended the year with $171.7 million in cash reserves. Despite these solid numbers, GTI’s stock is still down nearly 50% over the past year due to industry-wide challenges.

Next up is Trulieve Cannabis (OTCQX: TCNNF), which delivered a solid Q4 with revenue hitting $301 million, up 5% year-over-year. Full-year revenue landed at $1.2 billion, with 95% coming from retail sales. Trulieve reported record cash flow from operations—$271 million—and improved its gross margin to 62%. Despite a net loss of $155 million for the year, Trulieve managed to narrow its adjusted net loss to $19 million once one-time charges were excluded.