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- đ Texas Hemp Is Flashing Mixed Signals
đ Texas Hemp Is Flashing Mixed Signals
Anthony Varrell
March 21, 2025
GM Everyone,
This past week has been a whirlwind of interesting data points in the hemp worldâSB3 in Texas being a standout. On one hand, youâve got SB3, a borderline totalitarian bill marching through the Texas legislature, threatening to snuff out hemp entirely. On the other, you've got Wana Brands and yes, even Edible Arrangements rolling out hemp products in the Lone Star State like it's business as usual.
It really makes you wonder: are these companies making bold moves in spite of an impending crackdown, or do they know something we donât? Maybe SB3 ends up getting negotiated down with carve-outs for low-dose edibles and beverages. Time, as always, will tell.
A little more than a 7 minute read.
đ¸ The Tape
Edible Brands, the folks who made a name turning pineapple slices into floral masterpieces, are trading strawberries for something a little more... relaxing. The company announced this week it's diving into the cannabis-adjacent world of hemp with a new delivery service for gummies, drinks, and supplementsâbecause why settle for fruit when you can chew on federally-legal cannabinoids?
The new venture, cheekily named Edibles.com, is now delivering hemp-derived products to doorsteps, starting with Texas (because everything's bigger there, including the legal gray areas). Products will soon roll out to Florida and Georgia, with select items available nationwideâassuming your state isn't giving hemp the side-eye.
âThis is about wellness, convenience, and a better kind of buzz,â said Thomas Winstanley, executive VP of Edibles.com. âWeâve already got the delivery infrastructure and customer trustânow weâre just leveling up the edible game.â
The pivot comes as the hemp industry rides a bumpy wave. Legalized under the 2018 Farm Bill, hemp products containing less than 0.3% THC have become popularâperhaps too popular, sparking backlash from state lawmakers wary of intoxicating cannabinoids slipping through the cracks. California recently slammed the door shut on anything even sniffing THC, prompting Edibles.com to politely exclude the state from its initial launch.
Texas is fair game for now, but a new bill could make things tricky, potentially banning products unless they contain strictly non-intoxicating compounds like CBD or CBG. The company, unfazed, is forging aheadâbecause if thereâs one thing fruit arrangements taught them, itâs how to thrive in a niche market.
And theyâre not stopping at delivery. Edible Brands teased plans to enter the retail space with a flagship store in Atlanta and a limited franchise program. Translation: You may soon be able to pick up a bouquet and a buzz.
Looks like the fruit basket just got a little more... elevated.
đ Dog Walkers.
Auxly Reports Full Year Numbers
Whatâs Going On Here: Auxly Cannabis lit up 2024 with a puff of progress, reporting $122.3 million in annual revenueâa 21% buzz over 2023. Their gross margin rolled up to 46%, while SG&A costs trimmed down by 8%. Adjusted EBITDA hit $26.7 million (hello, 22% of revenue!), and they slashed debt by 56%, thanks in part to Imperial Brands turning IOUs into equity. Q4 alone saw $34.6 million in revenue and a standout 54% margin. Their brand Back Forty toked the top spot in Canada, even snagging âInnovation of the Yearâ for their vape. Not bad for the countryâs fourth-largest pot player.
Why Should You Care: Select Canadian names are starting to perform and slowly trend to the upside. The thesis is starting to get interesting.
Aurora Makes Major Breakthrough
Whats Going On Here: Aurora Cannabis just dropped a scientific mic with its discovery of PM2âa genetic resistance to powdery mildew, the bane of cannabis cultivators everywhere. This breakthrough, now part of Aurora's breeding program, is set to produce mildew-resistant strains ripe for commercial debut. The R&D wizards at Aurora Coast teamed up with UBC to prove that breeding disease-resistant plants is the sustainable path forward (especially where spraying chemicals is a no-go). Beyond disease-fighting superpowers, Auroraâs science-first swagger is boosting yield, potency, and trimming costsâsolidifying its reputation as the lab coat-wearing heavyweight in the global medical cannabis ring.
Why Should You Care: When I read this PR at first glance yesterday I kind of shrugged it off and then proceeded to see the stock rise as high as 15% intraday. This triggered me to do some digging and this is quite a breakthrough for ACB regarding genetic breakthroughs for thei cultivars moving forward.
đď¸ The News
đş YouTube
Top 3 Takeaways from the Latest Cannabis Earnings Season
What we will cover:
â Coming up at 11 AM Eastern time on the the latest Trade To Black podcast, hosts Shadd Dales and Anthony Varrell will welcome in Cresco Labs (OTCQX: CRLBF) CEO, Charlie Bachtell & Viridian Capital, CFA Frank Colombo.
Hereâs what we will be discussing:
Cresco Labs Q4 and Fiscal 2024 Earnings Breakdown: CEO Charlie Bachtell will dive into the company's financial performance, including revenue, adjusted EBITDA improvements, operational cash flow growth, and the strategic steps taken to manage debt and optimize costs.
Industry Trends for Cannabis Investors in 2025 with Charlie that include operational trends, market challenges like price compression, and how Cresco is navigating these shifts to position itself for long-term growth.
Cannabis Regulatory Landscape: Discuss the potential for cannabis reform in 2025 and how it could reshape market dynamics, with insights from Cresco Labs' leadership.
Earnings Season Recap with Frank Colombo: Veridian Capital analyst Frank Colombo will provide an overview of the latest earnings season, highlighting the standout winners, underperformers, and key financial themes across the industry.
Actionable Insights for Cannabis Investors: Practical advice on how investors can interpret the latest earnings results, identify growth opportunities in the sector, and prepare for the evolving cannabis market in 2025.