💸 The Tape

The Texas House of Representatives has given initial approval to a bipartisan bill that would significantly expand the state’s limited medical marijuana program. In a 118-16 vote on Monday, lawmakers advanced House Bill 46 (HB 46), sponsored by Reps. Ken King (R) and Penny Morales Shaw (D), signaling a growing legislative appetite to modernize cannabis access for patients.

HB 46 would dramatically broaden the Texas Compassionate Use Program (TCUP), first enacted in 2015 to allow low-THC cannabis for epilepsy patients. The bill proposes new qualifying conditions, such as chronic pain, glaucoma, traumatic brain injury (TBI), Crohn’s disease, and terminal illnesses, among others. Crucially, it would also permit military veterans to access medical cannabis for any condition, with future expansions left to the Department of State Health Services.

Beyond expanding access, the bill would authorize a wider array of cannabis products, including patches, lotions, inhalers, and vaping devices—moving beyond the current restrictions to low-THC, non-smokable products. Doctors, not lawmakers, would set potency limits and patient dosages.

To address access disparities, HB 46 mandates the Department of Public Safety to issue 11 dispensary licenses across designated health regions, with the option for satellite locations. An adopted amendment further streamlines patient applications, removes possession limits, and fast-tracks new dispensary licenses.

Advocates hailed the bill as a long-overdue modernization of Texas’s restrictive program. “This kind of comprehensive expansion of the Texas Compassionate Use Program is a long time coming,” said Heather Fazio, director of the Texas Cannabis Policy Center. A DPS report earlier this year also acknowledged the program’s failure to provide statewide patient access.

The bill now awaits a third reading before heading to the Senate, where cannabis-related legislation has historically faced resistance. Yet, public support is clear: a recent poll found that 80% of Texas voters favor some form of marijuana legalization.

Meanwhile, the state remains locked in legal battles over local marijuana decriminalization efforts. While cities like Austin and San Marcos passed voter-approved reforms, the state attorney general has aggressively challenged these measures. A Senate-passed bill now aims to bar cities from putting cannabis-related initiatives on local ballots.

Governor Greg Abbott (R) opposes local decriminalization but maintains that low-level possession should not lead to jail time. However, he emphasizes state legislative control, warning against a “chaotic” patchwork of local laws.

As the House advances medical expansion, Texas’s broader marijuana policy remains a battleground—between voters’ will, local autonomy, and state-level resistance.

📈 Dog Walkers.

$VFF ( ▲ 12.65% ) Spins Off Produce Assets

What’s Going On Here: Village Farms International (NASDAQ: VFF) announced a deal to spin off key assets of its Fresh Produce division into a new private joint venture, Vanguard Food LP, backed by Sweat Equities and others. Village Farms will retain a 37.9% stake in Vanguard and receive $40 million in cash. This move allows Village Farms to sharpen its focus on global cannabis while giving its produce business fresh capital and strategic partners for growth.

Vanguard will absorb Village Farms’ Texas greenhouse assets, produce IP (minus the Village Farms name), and operations. Charlie Sweat, former CEO of Earthbound Farm, will chair Vanguard’s Board. Michael DeGiglio, CEO of Village Farms, will serve as interim CEO of Vanguard.

The transaction is expected to close in Q2 2025.

Bottom line: Great news for VFF as this now makes them a pure play global cannabis company.

Vireo Gets Closer To Being Whole

What’s Going On Here: Vireo Growth Inc. (CSE: VREO; OTCQX: VREOF) has completed its acquisitions of Utah-based WholesomeCo Cannabis and the Arches technology and analytics platform. Wholesome, a key player in Utah’s medical cannabis market with a strong delivery model and single dispensary, developed the Arches platform for advanced digital marketing and loyalty programs.

The deal was valued at $69.8 million, paid in 134.2 million Vireo shares at $0.52 per share, reflecting a 4.175x multiple on Wholesome’s $16M Reference EBITDA. Performance-based clawbacks are in place through 2026, and selling shareholders are subject to share lock-up agreements over 33 months.

Vireo expects these acquisitions to boost profitability and enhance its competitive edge with proprietary tech. Other pending deals are anticipated to close in Q2 2025.

Bottom line: Once the rest of the deals close it will be interesting to see how they synergize and streamline the organization.

🗞️ The News

📺 YouTube

Organigram & Curaleaf Earnings: What Cannabis Investors Need to Know | Trade to Black

What we will cover:

✅ Host Shadd Dales and Anthony Varrell sit down with two of the biggest names in the cannabis industry: Beena Goldenberg, CEO of Organigram (NASDAQ: OGI), and Boris Jordan, Executive Chairman of Curaleaf (OTCQX: CURLF).

Beena breaks down what’s behind Organigram’s record-setting quarter — with revenue hitting $65.6 million, fueled by the Motif Labs acquisition and strong growth overseas. She also dives into their push into the hemp-derived beverage market, what’s next for their partnership with BAT, and how they’re positioning themselves in both Canada and Europe as the global cannabis landscape evolves.

Then, we go stateside with Boris Jordan. He unpacks Curaleaf’s Q1 performance — $310 million in revenue and improved margins — and gives us a real look at how the company is navigating market headwinds. We also get his take on the booming hemp THC space, and he doesn’t hold back on New York’s $15 million licensing fee, calling it a major hurdle for growth.