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  • 👀 Texas Hemp Is Under Seige 👀

👀 Texas Hemp Is Under Seige 👀

Author

Anthony Varrell
December 06, 2024

GM Everyone,

This week has been filled with twists and turns across the industry, from the potential new head of the DEA stepping down to Texas proposing a blanket ban on hemp, and the NFL revisiting its stance on cannabis. All of this unfolded while the industry gathered in Las Vegas for MJBizCon, where spirits were high, and attendance was strong. A key takeaway from the event was the buzz among insiders regarding private MSOs and brands. Many noted that these privately-held companies are outperforming their publicly traded counterparts, raising the question: Could they become the first targets for major investments once reform hits? It’s clear the industry is not only evolving but also gearing up for potentially transformative shifts.

Time will tell.

A little less than a 7 minute read.

💸 The Tape

Texas Lt. Gov. Dan Patrick’s Latest Crusade: A Statewide Ban on All THC Products

Let’s talk about Texas, shall we? The land of wide-open spaces and even wider gaps in logic when it comes to cannabis. This week, Lieutenant Governor Dan Patrick announced he’s pushing a legislative initiative to ban all THC in Texas. Yes, all THC. Because apparently, nothing says ‘public servant’ like deciding the citizens of your state are too irresponsible to handle a plant—while also ignoring the will of over 60% of Texans who support legalization.

Dan Patrick is throwing his weight behind Senate Bill 3, which aims to outlaw every form of psychoactive THC. This crusade comes in response to the 2019 law that allowed for hemp products containing less than 0.3% delta-9 THC. That law was a reasonable attempt to distinguish hemp from cannabis, but according to Dan, retailers have turned it into a loophole big enough to drive a combine harvester through.

Patrick is especially miffed about delta-8 THC, a hemp-derived cannabinoid that’s gained popularity in Texas. It’s legal under federal law and just as psychoactive as the delta-9 THC in cannabis—but less safe due to a lack of regulation. The irony is glaring: they legalized hemp-derived delta-8 while keeping cannabis illegal, proving how misguided their priorities are. If this were really about public safety, why allow Texans to legally buy an inferior cannabis product that could potentially be full of harmful chemicals, instead of embracing the safety that full legalization would bring? According to Patrick, stores selling delta-8 and similar products are “targeting Texas children” and exposing them to “life-threatening” amounts of THC. Life-threatening? Really? Unless kids are out here eating THC by the pound—which, spoiler, they’re not—it’s hard to see the threat, especially considering there have been exactly zero cannabis-related deaths reported in the ten thousand plus of years humans have been using it.

📈 Dog Walkers

iAnthus Is Still A Dumpster Fire

It seems iAnthus Capital Holdings is adding some green to its balance sheet, though not quite in the way investors might have hoped. In a settlement with Ninth Square Capital, the cannabis operator is handing over 5 million shares at a bargain-bin price of C$0.01 each—essentially a penny for their thoughts on oppressive conduct allegations. While the deal sidesteps any admission of guilt, it highlights iAnthus’ flair for turning legal drama into shareholder dilution. These shares will emerge as “restricted securities,” meaning they’re not exactly free to roam U.S. markets. The takeaway? A settlement that plants the seeds of resolution but leaves investors wondering if the grass on iAnthus' side of the fence is truly greener—or just painted that way.

Canopy Growth Goes Seasonal

Canopy Growth is sleighing the holiday season with a merry mix of cannabis-inspired cheer. The standout? Tweed Cranberry Ginger Ale, a sugar-free, THC-laced nod to festive libations, perfect for elevating your ugly sweater party. If flower is more your vibe, Tweed Snowtorious 91K delivers frosty indica magic with minty-diesel aromas—a bold pairing for cozy winter nights. For the connoisseurs, 7ACRES Ultra Jack serves citrus-spiced sativa sophistication, while Claybourne Frosted Flyers pre-rolls bring California dreaming north with flavors like Grape Gasolina and Banana OG. President Dave Paterson promises these treats will light up celebrations and perhaps distract from this year's stock performance. Whether you're gifting, gathering, or just unwinding, Canopy is here to make the holidays a little more lit.

Decibel Closes AgMedica Deal

Decibel Cannabis has officially sealed its deal with AgMedica Bioscience, wrapping up an acquisition as smooth as one of their premium extracts. The $6.3 million unsecured convertible debenture has now transformed into a hefty 114,545,455 shares—Callisto Capital's reward for playing middleman. While Callisto picks up a chunk of the pie, thanks to a timely private placement, they won’t be wielding the "Control Person" title. Translation: no need for shareholder approval drama, which is a win for Decibel's efficiency game. With TSXV’s final blessing, Decibel flexes its ability to execute strategic acquisitions without diluting its autonomy. Investors, take note—this move could amplify Decibel's market leadership, assuming they keep their balance sheet in tune. As for AgMedica, welcome to Decibel’s higher standards.

🗞️ The News

📺 YouTube

Pennsylvania to 2025: Shaping Cannabis Trends and Market Moves | Trade to Black

What we covered:

✅ On the Trade to Black Podcast, Hosts Shadd Dales and Anthony Varrell will be joined by Cannabis Advisor Seth Yakatan for his weekly segment diving into cannabis data and trends you may not know about.

First up: Pennsylvania. A huge catalyst state for major players like Trulieve, Green Thumb Industries, Curaleaf, and Verano. With Trulieve leading the footprint race with 21 stores, Pennsylvania’s medical market is thriving—but will legislative voting versus ballot initiatives impact adult-use legalization? We’ll explore the pros and cons.

Next, we shift to Minnesota and learn why Seth is bullish on the state even though the rollout has been anything less than perfect. Find out which 2 MSO’s are thriving, and if more companies will focus on Minnesota moving forward.

Then, Weedmaps—what’s going wrong? Misleading metrics, SEC fines, and executive resignations. Can the company recover?

Finally, 2025: the year of cannabis consolidation. Will large private companies finally make their move? Seth breaks it all down.