💸 The Tape

Virginia lawmakers filed a major adult-use cannabis bill that could finally turn the Commonwealth’s long-awaited legal sales market from blueprint into reality. For residents and prospective operators who’ve watched legal possession sit on the books for half a decade without a retail market to match, the new proposal represents both policy progress and a potential roadmap to regulated commercial sales in late 2026.

From Possession to Purchase: The Core of the Proposal

The legislation, introduced by Delegate Paul Krizek (D), aims to build the first comprehensive regulatory framework for recreational cannabis sales in a state that decriminalized possession back in 2021 but has never enacted a functioning retail market. The bill follows months of study by Virginia’s legislative Joint Commission on cannabis market transition and aligns with the broader goals lawmakers set out in late 2025 to create a regulated industry.

At its heart, the bill would:

• Legalize and regulate retail sales of marijuana for adults 21 and older.

• Expand the possession limit from the current one ounce to 2.5 ounces, bringing the law closer to what many other legal states allow without inviting reclassification hearings.

• Permit recreational sales to begin November 1, 2026, if the legislative process and regulatory roll-out stay on schedule.

• Charge the Virginia Cannabis Control Authority with licensing and oversight, including cultivation, processing, testing, distribution, and sales.

• Let adults continue to grow up to four plants at home for personal use.

It is, in many ways, the “physical manifestation” of years of industry and advocacy work: a legislative text that attempts to cover the major elements of a market in one sweep. No longer is Virginia waiting for the idea of a market; it is now sketching the blueprints.

Why This Matters (and Why It’s a Big Deal)

For nearly five years, adult possession has been legal in Virginia, but no commercial avenue has existed to buy cannabis legally. That anomaly created a bizarre regulatory gap where possessing and growing weed was lawful but buying it in a regulated way was not. The result was a market still dominated by illicit sellers and hemp-derived products that pushed too close to intoxicating thresholds, leaving growers, consumers, and regulators all a bit out of step.

This bill seeks to close that gap in concrete terms. It pairs consumer protections—like stronger labeling and regulated sales points—with an enforcement and licensing regime designed to let legitimate businesses operate under a state-sanctioned umbrella. In effect, Virginia is trying to take “legal” out of the statute books and put it on the shelf.

A Shift in Political Winds

A key reason this bill was introduced now is the political change at the governor’s office. Outgoing Governor Glenn Youngkin vetoed previous efforts to legalize retail sales, even after the legislature passed them. The incoming administration of Governor-elect Abigail Spanberger (D) has signaled firm support for regulated adult-use sales, nudging the legislature toward a market-ready bill that she would sign if it reaches her desk.

Spanberger’s emphasis on consumer safety and product transparency echoes one of the bill’s rationales: a regulated market gives consumers clarity and protection, much the way packaged beer or liquor displays a percentage to indicate strength. In contrast, unregulated products leave buyers guessing about potency and quality.

Where Things Go from Here

The bill will now go through committee referrals and hearings as the 2026 General Assembly session unfolds. With Democratic majorities in both chambers and a supportive governor-elect, there appears to be a genuine pathway to enactment—barring procedural snags or last-minute opposition.

Localities are already thinking ahead too: city councils and advisory task forces, especially in population centers like Virginia Beach, are exploring zoning, operating hours, and other retail considerations in anticipation of state action.

The Bottom Line for 2026

If the bill becomes law this session, Virginia could join the ranks of states with fully regulated adult-use cannabis markets by late 2026. That would mark a significant shift from five years of possession-only policy and could set the stage for hundreds of licenses, new revenue streams, and a more coherent regulatory framework for growers, distributors, and consumers alike.

For now, stakeholders on all sides—from growers to local governments to prospective retailers—are watching Richmond closely, tracking hearings and waiting to see whether talk finally turns into licensed transactions. Virginia may soon move from “weed in the statute books” to “weed in the downtown dispensary.”

📈 Dog Walkers

$VRNO ( ▲ 2.26% ) Gets Liquid

Verano Holdings Corp. announced an amendment to its existing $75 million revolving credit facility, increasing total borrowing capacity to $100 million and extending the maturity date to February 28, 2029. The facility continues to be agented by Chicago Atlantic Admin, LLC and remains secured by owned real estate, with no additional collateral pledged as part of the upsizing.

The amendment meaningfully enhances Verano’s financial flexibility at a time when access to efficient capital remains a competitive advantage in U.S. cannabis. As of today, $50 million has been drawn, leaving $50 million of incremental liquidity available subject to customary conditions.

Borrowings under the facility carry a floating interest rate of SOFR plus 6%, with a 4% SOFR floor, no required amortization, and repayment flexibility in $2.5 million increments. Importantly, the structure allows for the proportionate release of real estate collateral, provided outstanding borrowings remain below 80% of appraised value, giving Verano optionality as it continues to optimize its asset base.

CEO George Archos framed the amendment as part of the Company’s broader balance sheet strategy, noting that the expanded revolver provides capital deployment flexibility without incremental collateral, while supporting ongoing debt refinancing discussions.

From a capital markets perspective, the move signals lender confidence, improves liquidity runway, and lowers marginal cost of capital—three things investors tend to appreciate, particularly in a sector where those attributes are not always a given.

$IXHL ( ▼ 1.72% ) Takes Home Major Award

Incannex Healthcare Inc. (Nasdaq: IXHL), a clinical-stage biopharmaceutical company advancing combination therapies for chronic conditions, announced it has received the 2025 Clinical Trials Arena Excellence Award for Research and Development in Respiratory Disorders for its work on IHL-42X, an oral fixed-dose combination therapy under development for obstructive sleep apnea (OSA).

The Clinical Trials Arena Excellence Awards, powered by GlobalData, recognize standout achievements across the global life sciences ecosystem. The program leverages analysis from researchers, journalists, and artificial intelligence, drawing on more than one billion data points annually to evaluate innovation and impact across more than 200 countries. Incannex’s recognition reflects growing industry validation of its research-driven strategy and its focus on addressing persistent unmet needs in respiratory medicine.

IHL-42X combines dronabinol and acetazolamide in a single oral formulation designed for adults with moderate-to-severe OSA. Despite the prevalence of the condition, treatment today remains dominated by device-based approaches such as positive airway pressure (PAP), which many patients struggle to tolerate or adhere to long term. Incannex’s approach targets this gap directly, offering a potential non-invasive, pharmacologic alternative for patients who are unable or unwilling to rely on nightly device therapy.

The development rationale for IHL-42X is grounded in well-established sleep and respiratory physiology, with its dual mechanisms intended to stabilize ventilatory control while enhancing upper airway muscle tone. This differentiated strategy positions IHL-42X as a potential standalone treatment option rather than a device adjunct.

Late-stage development is supported by a comprehensive Phase 2 clinical program incorporating objective polysomnography data, validated patient-reported outcomes, and structured exit interviews. To date, the therapy has demonstrated a favorable safety and tolerability profile, supporting its continued advancement toward potential chronic use, subject to regulatory approval.

The award also underscores Incannex’s broader pipeline philosophy, which emphasizes combination medicines and targeted biological pathways across chronic conditions including obstructive sleep apnea, rheumatoid arthritis, and generalized anxiety disorder. Across its clinical-stage assets—IHL-42X, IHL-675A, and PSX-001—the Company remains focused on disciplined execution, translational science, and outcomes that matter to patients.

“We’re honored by this recognition, which validates the deliberate and science-first approach we’ve taken with IHL-42X,” said Joel Latham, President and CEO of Incannex. “Obstructive sleep apnea remains significantly underserved, particularly for patients who cannot adhere to device-based therapies. Our goal has been to develop a purpose-built oral treatment supported by rigorous clinical evidence. This award reinforces the importance of that mission as we advance IHL-42X into late-stage development.”

🗞️ The News

📺 YouTube

Why Branding Is Becoming Cannabis’s Biggest Advantage | TDR Cannabis in 5

What we will cover:

✅ Why is branding becoming one of the most important separating factors in the cannabis industry as we move deeper into 2026?

This episode of TDR Cannabis in Five takes a closer look at how the cannabis market is shifting from survival mode into a more mature, consumer-driven phase — and why brand identity is starting to matter as much as cultivation, pricing, or retail footprint.

For years, cannabis companies were focused on staying afloat amid price compression, limited access to capital, and regulatory uncertainty. But as the industry inches closer to potential uplisting, banking reform, and broader institutional participation, the competitive landscape is changing. Companies are no longer being judged solely on scale or cost efficiency. Increasingly, they’re being evaluated on whether they can build durable brands that consumers recognize, trust, and return to.

This episode uses cannabis stock MariMed (OTCQX: MRMD) as a case study, focusing on its edible brand Betty’s Eddies. Rather than chasing rapid expansion, MariMed invested early in brand development — from product formulation and packaging to positioning that aligns more closely with wellness and consumer packaged goods than novelty cannabis products.