💸 The Tape

Washington delivered some unexpected theater this week as the Senate held what amounted to the first real floor showdown over cannabis policy in modern memory. The issue at hand wasn’t full legalization or rescheduling, but something arguably more consequential for the market right now: whether Congress should effectively ban hemp-derived THC products nationwide.

Sen. Rand Paul (R-KY) tried to stop that ban with an amendment to strip the provision from the must-pass government funding bill. His pitch was simple: Congress shouldn’t kneecap a multibillion-dollar industry that many farmers now rely on, including those in his own home state. But in a 76–24 vote, the Senate tabled Paul’s amendment—meaning the ban stayed in the bill.

That meant most of the attention fell on the two Republicans who voted with pro-hemp Democrats to keep the amendment alive. One was Sen. Mike Braun (R-IN). The other, unexpectedly, was Sen. Ted Cruz (R-TX)—a lawmaker who has spent years criticizing recreational marijuana legalization and blasting federal rescheduling.

Why Cruz broke ranks deserves a double-take.

Cruz said afterward that he opposes a one-size-fits-all federal prohibition and believes states should regulate hemp and cannabis as they see fit. He pointed to Texas’s own approach—age restrictions and product testing—rather than outright bans. In other words, Cruz supports rules, not scorched-earth policy, at least on hemp.

Meanwhile, Sen. Mitch McConnell (R-KY), the architect of the original 2018 Farm Bill that legalized hemp, has now become the architect of its practical undoing. He argued that the new restrictions are needed to crack down on intoxicating hemp products being sold to minors. The alcohol industry wholeheartedly agrees, which is not surprising given that hemp beverages have lately been stealing some of their bar space.

The Senate’s vote doesn’t just hit hemp. It also strips out bipartisan provisions that would have finally let VA doctors recommend medical cannabis to veterans—provisions the House and Senate each already approved earlier this year. Those reforms quietly disappeared somewhere in the final bill-writing room. The timing is especially poetic (read: awkward) as the vote came just one day before Veterans Day.

The bill now heads to the House—likely headed for quick passage as leaders rush to reopen the government.

Rand Paul says he’s not done fighting. Ted Cruz has unexpectedly become the hemp industry’s most unlikely ally. And Mitch McConnell, once the hero of hemp, is now its executioner.

Welcome to cannabis policy in 2025: the plot twists do not stop.

📈 Dog Walkers

$TLRY ( ▼ 1.53% ) Condemns Hemp Ban

While Congress edges closer to a federal funding deal that sneaks in a sweeping ban on hemp-derived THC products, Tilray Brands has stepped forward to draw a bold, maybe slightly exasperated line: Don’t ban it—regulate it properly.

In a statement released this week, Tilray positioned itself as the adult in the room while lawmakers, lobbyists, and market competitors air their grievances over hemp beverages and delta-8 gummies. The company says it stands “united with responsible operators” across the alcohol and beverage supply chain to advocate for clear, consistent rules—not a prohibition rollback that could push the category back into basement chemistry labs and unlicensed online storefronts.

Senior Vice President Sam Garfinkel didn’t mince words. The hemp ban language tucked into the funding bill, he said, is “misguided, out of touch with consumer interests, and misplaced in legislation where it does not belong.” In other words: a policy drafted at 3:00 a.m. by people who may not know the difference between delta-9, delta-8, and a gas-station slushie.

Tilray argues that prohibition won’t eliminate intoxicating hemp beverages—it will simply drive them into the shadows, where dosing gets murkier, testing disappears, and TikTok packaging designers run wild. They’re also quick to point out the optics: banning lower-dose hemp-derived beverages while allowing high-dose cannabis in legal states seems logically backward.

To put structure around the debate, Tilray is proposing a 10 mg-per-serving cap of naturally derived delta-9 THC for hemp beverages—a threshold they say aligns with responsible consumption and state-level norms already working in the marketplace. Think: a sessionable cannabis seltzer, not a rocket ship to Saturn.

The company also flagged the stakes. The hemp-derived beverage market is now a $1 billion U.S. industry, supporting farmers, manufacturers, distributors, and retail jobs. A recent nationwide poll found over 70% of Americans want hemp products to remain legal—suggesting that Congress may be on the wrong side of both economics and voter preference.

Importantly, Tilray acknowledges that hemp-derived beverages are not yet a major revenue pillar for them—but strategically, they’re positioning for the long-term. With a one-year implementation window built into the bill, the company is signaling that it intends to be at the negotiation table, shaping whatever regulatory framework emerges next.

Or to translate into Capitol Hill speak: Tilray isn’t just complaining—they’re offering Congress the homework answers. Whether anyone is reading them is another matter.

$GRUSF ( ▼ 5.63% ) Reports Q3

Grown Rogue reported third quarter results this week, and the story is a tale of two realities: the Company’s pro forma growth engine is firing, while headline IFRS figures look choppier on the surface. In other words, if you only skim the bold numbers, you’ll miss the actual operating picture — which is quietly improving.

On a pro forma basis, which includes contributions from the Company’s New Jersey affiliate (ABCO), revenue rose 26% year-over-year to $8.5 million, with pro forma adjusted EBITDA of $1.7 million and a healthy 20% margin. That margin profile is consistent with last year, demonstrating cost discipline despite shifting market conditions.

The IFRS picture, however, shows reported revenue at $5.4 million, down from $7.0 million a year ago, and adjusted EBITDA at $0.1 million, a steep decline from $1.7 million. The delta comes largely from accounting treatment and mix effects — as well as the simple reality that Oregon and Michigan remain highly competitive markets where pricing pressure continues to take a toll.

Now, the bright spot: New Jersey. ABCO generated $3.4 million in revenue and $1.6 million in adjusted EBITDA, good for a robust 46.6% margin. The market remains dominated by packaged flower and pre-rolls — a format shift that plays directly to Grown Rogue’s brand-forward, craft-leaning identity. The Company expects packaging and branding upgrades in New Jersey to help support margin conversion in Oregon and Michigan over time.

Michigan delivered $2.5 million in revenue and $1.0 million in EBITDA (39.7% margin), with selling prices stabilizing sequentially. Oregon, meanwhile, remains the tough-love training ground of American cannabis: $2.6 million in revenue and $0.3 million in EBITDA, pressured by oversupply and aggressive pricing. Yet even here, yields improved and production costs declined — a reminder that operational discipline is still the Company’s core muscle.

CEO Obie Strickler sounded energized following the Company’s leadership summit, emphasizing a “flower-forward, low-cost” platform and a commitment to returns-driven expansion. The biggest new swing? Minnesota, which the Company views as its most attractive new-build opportunity. With pre-approval for up to 30,000 sq ft of canopy and site planning underway, Grown Rogue expects to enter the market with ~10,000 sq ft initially, scaling as demand develops.

In short: Oregon remains a war of attrition, Michigan is stabilizing, New Jersey is scaling, and Minnesota represents the Company’s next strategic chapter. It’s disciplined craft cannabis — just delivered with spreadsheets, yield graphs, and a long-game mindset.

🗞️ The News

📺 YouTube

Congress Moves to Ban Hemp THC — What Happens Next | TDR Cannabis in 5

What we will cover:

✅ Can Congress really shut down America’s hemp-THC market overnight? That’s what’s on the table right now — and the fallout could reshape both the hemp and cannabis industries for years to come.

Welcome back to TDR Cannabis in Five, presented by Dutchie.

Today’s episode looks at new hemp language tucked inside Congress’s Continuing Resolution — language that would ban intoxicating hemp products like Delta-8, Delta-9 variants, THC-O, and HHC by redefining “total THC.” If this passes, it’s the biggest reset since the 2018 Farm Bill — wiping out a billion-dollar gray-market industry and forcing a full-scale reboot of how legal THC is sold in America.

We break the story down in three parts: ⿡ How the proposed hemp ban would impact farmers, retailers, and CBD brands. ⿢ Why licensed cannabis operators could benefit — if they play it smart. ⿣ What the post-ban market could look like for investors, consumers, and regulators heading into 2026.