💸 The Tape

Indiana’s marijuana politics just got a potential jolt from Washington. Gov. Mike Braun (R) says that if President Donald Trump moves forward with federally rescheduling marijuana, it could “add a little bit of fire” to Indiana’s own slow-burning cannabis conversation—though not everyone in his party is on board.

Braun, who’s previously said he’s amenable to medical marijuana but cautious on full legalization, told reporters Tuesday that Trump’s comments could influence the conservative legislature’s pace. “I think [Trump’s remark] probably adds a little more fuel to the fire in terms of the speed with which it might occur,” he said.

At a press conference Monday, Trump stopped short of announcing a decision but confirmed the administration is “looking at” shifting marijuana from Schedule I to Schedule III of the Controlled Substances Act—a change that wouldn’t legalize it nationwide but would expand research access and open banking to licensed cannabis businesses.

But while Braun seems open to seeing where the smoke leads, Sen. Jim Banks (R-IN) is firmly in the “just say no” camp. He warns legalization in other states has “caused even more crime and issues” and says, “I hope Indiana is never a state that legalizes marijuana.”

Braun has acknowledged Indiana is now surrounded by states with broader marijuana laws, including some with full adult-use legalization. Polls show 87% of Hoosiers support legalization in some form, but top GOP lawmakers remain staunchly opposed. Senate President Pro Tem Rodric Bray dismisses medical marijuana as a back door to recreational use, while House Speaker Todd Huston calls cannabis “a deterrent to mental health.”

Several bills are teed up for Indiana’s 2025 session, including a GOP-backed measure to allow medical marijuana for serious medical conditions. Still, history suggests they face an uphill climb.

Adding intrigue, a former GOP congressman (and onetime Trump AG nominee) says rescheduling could be a political game-changer, claiming it would be “game over for Democrats” if Trump acts. Meanwhile, bipartisan lawmakers in D.C. are urging the president to follow through quickly.

For now, Indiana’s cannabis debate is a tug-of-war between changing national winds and deeply rooted local resistance. Whether Trump’s decision becomes a spark or just more hot air in the Hoosier State remains to be seen.

📈 Dog Walkers

$CRLBF ( ▼ 10.76% ) Closes Major Refi

What’s Going On Here: Cresco Labs just pulled off a clean refinancing play that checks a lot of boxes for long-term balance sheet stability.

Key Terms of the New Debt

• Facility Size: US $325M senior secured term loan

• Interest Rate: 12.5% annually

• Maturity: August 13, 2030

• Prepayment Flexibility: Can prepay up to $125M at a reduced premium

• Structure: No equity or convertible features, standard covenants

Strategic Impact

• Debt Reduction: Down from $360M to $325M

• Maturity Extension: Pushes the next big refi wall out five years

• Liquidity Protection: Removes near-term refinancing risk, freeing Cresco to focus on operational execution rather than scrambling for capital

Capital Allocation Signal
CEO Charlie Bachtell’s commentary frames this as a “disciplined” capital management milestone, meaning Cresco can now redeploy more bandwidth toward growth initiatives—whether that’s deepening existing markets, pushing into new states, or capturing distressed opportunities if they arise.

Why It Matters for Investors

• Locks in a fixed rate in a still-elevated interest rate environment

• Avoids equity dilution—often a sore spot for cannabis investors

• Gives Cresco optionality to deleverage faster if cash flows improve, especially if macro or cannabis-specific tailwinds lift EBITDA

This refinancing is essentially Cresco’s “fortress balance sheet” move—prudent in a capital-starved industry where refinancing windows can slam shut without notice.

If you want, I can stack this up against other recent cannabis debt refinancings to show where Cresco’s deal terms land in the current market spread environment. That would give a clearer sense of whether they got a strong, middle-of-the-pack, or expensive deal.

$GLASF ( ▲ 1.46% ) Posts Solid Quarter

What’s Going On Here: Glass House Brands just dropped a Q2 2025 that could make even the most jaded California cannabis investor do a double take. Revenue climbed 11% year-over-year to $59.9M, but the real flex was the 34% quarter-over-quarter jump—proof that this isn’t just seasonal sunshine. Gross profit held a beefy 53% margin, with Adjusted EBITDA at $18.1M—quadruple last quarter’s figure, making it clear someone’s been tightening the screws in all the right places.

On the operational side, Glass House cranked out nearly 231,000 pounds of biomass, blowing past guidance and chopping production costs to $91/lb—well under their $100 long-term target and 39% lower than last year. Retail sales defied the California slump (up 13% YoY in a market down 15%), thanks to strategic pricing and brand pull.

Add in partnerships with LEEF, Eaze, and UC Berkeley, plus a preferred equity refinancing, and you’ve got a vertically integrated operator that’s trimming more than just plants—it’s trimming inefficiency, debt risk, and any doubts about its ability to thrive in a tough market. In short: California headwinds, meet Glass House tailwinds.

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📺 YouTube

Verano CEO on Earnings & Gaetz Pushes Trump to Reschedule Cannabis | TTB Powered by Dutchie

What we will cover:

✅ Verano Holdings (CBOE: VRNO) CEO George Archos joins Shadd Dales and Anthony Varrell on the Trade to Black podcast to break down the company’s latest earnings — and the numbers are turning heads. Verano reported $202M in revenue, $113M in gross profit, and a 33% adjusted EBITDA margin, handily beating margin expectations while focusing on operational efficiencies, automation, and product innovation. Shares have surged over 100% in the past 10 trading days, fueled by improved cultivation yields, stronger retail performance in key markets like Florida, and a disciplined wholesale strategy targeting creditworthy customers.

Archos outlines why he expects a stronger second half of 2025, with cost management measures, market share gains, and new product partnerships on the horizon. Retail revenue rose 3% year-over-year, driven by Florida adult-use momentum, while wholesale headwinds from competition and vertical integration at competitors remain. Verano’s focus: sustaining a 30%+ adjusted EBITDA margin profile, building cash reserves, and leveraging owned real estate for refinancing.

Also in this episode — the latest on U.S. cannabis rescheduling. Former Florida Congressman Matt Gaetz is urging President Trump to move marijuana from Schedule I to Schedule III, calling it a political and economic win that could end Democrats’ advantage on cannabis at the ballot box. Gaetz frames it as “populism meets practicality,” noting 280E tax relief, expanded research opportunities, and the absurdity of cannabis being classified alongside heroin.