💸 The Tape

In the ever-blossoming saga of cannabis legalization, New Mexico marijuana businesses are discovering that being legal in the Land of Enchantment doesn’t mean you’re safe at the border. Several businesses are now suing the feds after having their perfectly state-legal cannabis products and assets seized by Customs and Border Protection (CBP) and the Department of Homeland Security (DHS). Their argument? You can’t just grab our goods because we’re not breaking state law. The feds' rebuttal? Oh, but we can—and we’ll do it "summarily," thank you very much.

According to DHS and CBP, cannabis is still classified as a Schedule I drug under the Controlled Substances Act, right up there with heroin and other “we-swear-this-is-worse-than-meth” substances. And that classification gives the government carte blanche to scoop up your weed, your wheels, and even your wallet if they suspect you’re moving marijuana—even if it’s legal under state law.

But here's the twist: in a recent court filing, the agencies hinted that things could change if cannabis were reclassified to Schedule III. Yes, the same category as Tylenol with codeine. Under such a shift, federal forfeiture would no longer be a free-for-all. The government would have to follow stricter procedures, like actually notifying business owners and giving them a chance to contest. Imagine that—due process!

The cannabis companies argue they’re being unfairly targeted compared to businesses in other border states like Arizona and California. DHS says, “Prove it.” They contend there’s no credible evidence that New Mexico is being singled out, and besides, all cannabis is illegal under federal law, no matter how many dispensaries line the I-10.

Adding fuel to the fire, leaked audio revealed that New Mexico’s governor was less than thrilled with DHS’s blasé attitude. When she voiced concerns, a top DHS official allegedly brushed it off, saying, “Who cares? They make a lot of money.” Charming.

So, for now, the border remains a federal jurisdiction where Schedule I rules the roost and cannabis businesses walk a tightrope between state legality and federal forfeiture. If DEA ever gets around to that long-teased rescheduling, we might see a new chapter. Until then, cannabis entrepreneurs might want to keep their assets—and their expectations—well away from interior checkpoints.

📈 Dog Walkers.

AYR Shuffles Deck

What’s Going On Here: AYR Wellness is swapping CFOs—Brad Asher has officially exited stage left as of March 23, 2025, and stepping into the financial spotlight is Donna Granato. With over 25 years of number-crunching prowess and a résumé boasting names like Vivvix, Shutterstock, and Tribune Media, Donna’s no stranger to high-stakes spreadsheets. Interim CEO Steven Cohen is all smiles, praising her seasoned savvy. Looks like AYR’s finances are in capable (and impressively credentialed) hands—for now, at least.

Why Should You Care: Not the headline we wanted to see from AYR as they desperately need to name a new CEO to instill some kind of confidence despite the massive debt refi that is on the horizon. Seeing the CFO walk now is bleak.

Verano Starts To Leverage The RE Portfolio

Whats Going On Here: Rainbow Realty just planted a $12 million flag in cannabis real estate, teaming up with MJ REIT to back Verano Holdings with a cross-collateralized senior mortgage. The deal is secured by two top-tier cultivation sites in Arizona and Nevada—because why settle for one desert when you can have two? This marks Rainbow’s debut in Arizona and nudges their footprint to 12 states. With Fund IV now 64% deployed, Rainbow’s clearly not just chasing rainbows—they’re collecting rent along the way.

Why Should You Care: One of the shining spots on Verano was that they owned a majority of their RE portfolio which enabled them to breath from a total leverage standpoint. This is a tiny amount of money but it could be the start of them levering up the portfolio.

🗞️ The News

📺 YouTube

Major Cannabis Headlines Are Coming Out of Florida To Kick Off The Week | Trade to Black

What we will cover:

✅ On the latest Trade To Black podcast, hosts Shadd Dales and Anthony Varrell will dive into major developments in the cannabis industry. We have major headlines from the state of Florida where Curaleaf have plans to launch a hemp dispensary in Palm Beach and it has been uncovered that Ron DeSantis took $500k in donations from Phillip Morris International to fight Amendment 3.

Additionally, Michael Bronstein from the American Trade Association for Cannabis and Hemp will join us for the weekly Insiders Edge segment, to provide updates on the fight for hemp in the State of Texas.