💸 The Tape

If you want to understand why Pennsylvania remains stuck on cannabis legalization despite overwhelming public support, look no further than the Republican ticket that just won the state's primary election — and the arguments they're using to justify keeping the door shut.

Jason Richey, who won the GOP lieutenant governor nomination this week, declared on WILK radio that legalizing marijuana would be "catastrophic" for Pennsylvania, claiming it would quadruple the illegal market, drive employers out of the state, increase impaired driving, and worsen mental health outcomes. His running mate, gubernatorial nominee Stacy Garrity — the current state treasurer — has already pledged to veto any legalization bill that reaches her desk.

Together, they represent the clearest articulation yet of the Republican case against cannabis reform in Pennsylvania. The problem is that the case doesn't hold up particularly well against either the data or the political reality.

The Claims vs. The Evidence

Richey's central argument — that Colorado's black market "quadrupled" after legalization — runs directly counter to what Colorado's own governor says happened. Governor Jared Polis (D) responded to similar criticism last year by noting that "Colorado has collected over $3 billion in marijuana tax revenue to pave roads, build schools, rec centers and so much more, all while successfully cracking down on the underground market."

The broader data across legal states is more nuanced than either side often acknowledges, but the claim that legalization uniformly expands the illicit market is not supported by the weight of evidence. States with well-designed regulatory frameworks and competitive tax structures have generally seen illicit market activity decline over time — while states with overly restrictive licensing, high taxes, or slow rollouts have struggled more.

Richey's assertion that employers avoid states with legal cannabis is equally difficult to square with reality. Colorado, California, Illinois, Massachusetts, and New York — all legal states — remain among the most economically dynamic in the country. The suggestion that Fortune 500 companies are fleeing these states because of cannabis policy doesn't match observable corporate behavior.

The Political Landscape

What makes the Pennsylvania situation particularly frustrating for reform advocates is the gap between public sentiment and legislative action. A recent poll shows that seven out of ten Pennsylvania likely voters support legalizing adult-use marijuana — including 67% of Republicans and 64% of independents. This isn't a fringe position. It's a supermajority across party lines.

Yet Senate Republican leadership continues to block any legalization measure from advancing. Senate Majority Leader Joe Pittman (R) has said he doesn't see a "prevailing view for legalization" within his caucus, while Senate President Pro Tempore Kim Ward (R) has questioned the basic mechanics of a state-run cannabis market.

Garrity herself acknowledged the political reality during her veto pledge: "They're never going to pass it. Not as long as Senate Republicans are in control of the Senate." That's a revealing statement — less a policy argument than an admission that the blockade is institutional, not ideological.

The Democratic-controlled House passed a legalization bill last year, proposing sales through state-owned dispensaries modeled after Pennsylvania's liquor system. The Republican Senate criticized the model but hasn't advanced an alternative. It's the legislative equivalent of complaining about the restaurant while refusing to cook.

The Revenue Argument

Governor Josh Shapiro (D) has included cannabis legalization in three consecutive budget proposals, and his administration's case is built squarely on fiscal necessity. Pennsylvania faces a significant structural deficit, and the revenue projections from legalization are substantial — though the estimates vary depending on who's doing the math.

Shapiro's office projects about $36.9 million in first-year tax revenue from a 20% wholesale tax, rising to $223.8 million by 2030-2031. The state's Independent Fiscal Office is considerably more bullish, estimating $140 million in the first year and $432 million annually by 2030-2031 — factoring in the wholesale excise tax, 6% state sales tax, and licensing fees.

Over five years, Shapiro estimates the state would bring in $1.3 billion in total revenue — money he says should be invested in education, public safety, and communities.

The Garrity camp has dismissed these projections as overstated, but hasn't offered alternative revenue solutions to address the state's fiscal challenges. Richey's counter-proposal amounts to "conservative economic principles" — a phrase that, whatever its merits in other contexts, doesn't pay for roads or fund schools.

Meanwhile, five of Pennsylvania's six neighboring states have legalized adult-use cannabis. Reports suggest that up to 60% of customers at border-state dispensaries are Pennsylvania residents. Every dollar those consumers spend in New Jersey, New York, Ohio, or Maryland is revenue Pennsylvania is choosing to forfeit.

The Medical Market Foundation

What makes Pennsylvania's inaction even more puzzling is that the state already operates one of the most robust medical cannabis programs in the country — with more than 439,000 registered patients, 185 dispensaries, and over $1.7 billion in annual sales. The infrastructure for adult-use expansion functionally exists. The cultivation facilities, retail networks, and regulatory frameworks are built and operating.

Federal rescheduling of medical cannabis to Schedule III makes that existing infrastructure even more valuable. 280E tax relief now applies to Pennsylvania's medical operators, improving their after-tax profitability. A Shapiro spokesperson called the Trump administration's rescheduling "an important step" that "adds support" to the governor's push for state-level legalization.

What Happens Next

The November gubernatorial election now becomes the decisive variable. Shapiro holds a commanding polling lead — a recent Susquehanna survey showed a 22-point advantage with just 5% undecided. If he wins re-election and Democrats maintain or expand their House majority, the pressure on Senate Republicans to act intensifies further.

But even a Shapiro victory doesn't guarantee legalization. The Senate remains the chokepoint, and Republican control of that chamber would need to change — either through elections or through enough individual senators breaking ranks — for any bill to reach the governor's desk.

The House recently passed Shapiro's budget plan, which relies in part on projected cannabis revenue. The Senate expressed "profound concerns" about spending levels — without engaging on the revenue solution sitting right in front of them.

Richey calls legalization "catastrophic." Shapiro calls continued inaction indefensible. Seven in ten voters side with the governor. And Pennsylvania keeps watching its residents — and its revenue — drive across the border.

At some point, the math wins. The only question is how many more budget cycles Pennsylvania is willing to bleed before it does.

Source: Marijuana Moment

📈 Dog Walkers

$DBCCF Shines Bright

The Canadian branded cannabis company reported Q1 2026 net revenue of $29.8 million, up 41% year-over-year, with international sales tripling to $9.6 million and adjusted EBITDA doubling to $6.9 million. Gross margin held at 51%, and adjusted net income swung to positive $3.1 million — a $3.2 million improvement from the prior year quarter.

CEO Benjamin Sze called Q1 "a strong start" with "real momentum heading into the strongest season for our domestic portfolio." The setup for the rest of 2026, he added, "is compelling." Based on the numbers, that's not hyperbole.

International: The Growth Engine Keeps Accelerating

International sales of $9.6 million represented 330% year-over-year growth, driven by surging demand for Decibel's EU GMP-certified products processed through the AgMedica facility acquired in late 2024. The company shipped GMP-extracted product into Germany for the first time in Q1 — a milestone in the EU's largest medical cannabis market — and now has 16+ international customers and 45+ GACP cultivators with executed supply agreements.

Notably, Q1 international growth was actually constrained by delayed German permit timelines, which management says improved materially in Q2. With 60 tons of annual flower processing capacity running at just ~30% utilization, the runway for international scaling remains enormous without requiring additional capital investment.

Domestic: Growth Returns

The domestic business posted $20.3 million in revenue, up 7% year-over-year, snapping back from the near-flat performance that characterized 2025. The catalyst was the Standard Issue value brand, which has climbed to 8th overall in vapes and 10th in infused pre-rolls nationally since its launch. General Admission maintained its position as the No. 1 infused pre-roll brand in Canada and holds leadership in the liquid diamond segment. Overall domestic market share grew from 4.1% to 4.4% during the quarter.

Outlook and Balance Sheet

Decibel guided for Q2 revenue of $33–$35 million and reconfirmed full-year guidance of $130–$135 million in revenue and $27–$31 million in adjusted EBITDA. The company's $61 million credit facility with ATB Financial extends maturities to 2030, with a $10 million revolver currently undrawn. Pro forma debt-to-EBITDA remains below 2.0x.

The planned $2.5 million sale of the idle Creston, BC cultivation property is expected to close by June, saving $4 million annually with no revenue impact.

Revenue up 41%. EBITDA doubled. International tripled. Guidance reconfirmed. Decibel isn't slowing down.

$VRNO ( ▲ 2.83% ) Celebrates Vegas Success

Most dispensary anniversaries get a social media post and maybe a weekend sale. Zen Leaf Las Vegas is throwing a 10-day party — and giving back to the community while doing it.

Verano Holdings announced the kickoff of "All-in-at-10" celebrations across its three Las Vegas Zen Leaf dispensaries — Flamingo, Fort Apache, and North Las Vegas — running May 21 through May 30 to mark the brand's 10-year anniversary in the market. The event blends aggressive daily promotions with charitable giving, local business support, and — because this is Vegas — an Elvis lookalike contest with a grand prize of one year of flower for one penny.

The charitable component is the standout. Each day of the celebration is paired with a different Las Vegas non-profit organization, with Zen Leaf donating a portion of daily proceeds and offering customers the option to round up at checkout. Beneficiaries include Vegas Stronger, Hearts Alive Village, The Shade Tree, Opportunity Village, The Animal Foundation, and the LGBTQ+ Center of Las Vegas, among others.

Daily promotions range from 30-50% off storewide to category-specific deals on concentrates, vapes, edibles, pre-rolls, and flower. Hospitality and gaming industry professionals — the backbone of the Las Vegas economy — get their standard discount bumped from 10% to 20% for the duration. And on select days, customers who show a same-day receipt from a local small business receive a pre-roll for one penny with their purchase.

A limited-edition "All-in-at-10" Playbook lets guests collect stamps through purchases and activations, unlocking additional perks and the chance to win free cannabis for a year plus an invitation to an exclusive June event.

For Verano, which operates 162 dispensaries across 13 states, the Las Vegas celebration is a reminder that cannabis retail works best when it's embedded in the community — not just selling to it.

🗞️ The News

📺 Trade To Black

Institutional Money Watching Cannabis More Closely Again | TTB Presented by Flowhub

• Virginia Veto: The hosts break down Governor Spanberger's veto of Virginia's adult-use cannabis bill and what it means for the state's timeline going forward.

• Safe Harbor Earnings: CEO Terry Mendez discusses Q1 results, including 55% loan program income growth and a major balance sheet turnaround from negative equity to positive shareholder equity in just twelve months.

• Institutional Perspective: John Pinto of SOJE Capital shares where institutional investors and family offices actually stand on cannabis — including uplisting potential, regulatory clarity concerns, and what broader Schedule III rescheduling could unlock.

• Capital on the Sidelines: A growing sense that institutional money is quietly preparing for the next stage of cannabis, even as Wall Street waits for the final regulatory signals to move in.