💸 The Tape

The Texas Senate has once again voted to criminalize most consumable hemp products, approving SB 5 on second reading in a 20–9 vote during the state’s special legislative session. The bill would outlaw any hemp product containing even trace amounts of THC and restrict legal cannabinoids to CBD and CBG only. Possession of affected products would be a Class B misdemeanor, carrying up to 180 days in jail and a $2,000 fine.

Lead sponsor Sen. Charles Perry (R) defended the bill as necessary to close “loopholes” exploited by manufacturers to sell intoxicating products under federal hemp laws. “The ability to regulate this is not doable,” Perry argued on the Senate floor. “If you regulate an illegal substance today, it just gives it credit and legitimacy that it didn’t have before.”

The move comes despite Gov. Greg Abbott’s veto of a similar bill, SB 3, earlier this year. Abbott has repeatedly called for strict regulation rather than an outright ban, asking lawmakers to prioritize restricting youth access, limiting potency and targeting synthetic cannabinoids while preserving a “highly regulated” market for low-THC hemp products. “I’m not in favor of a total ban,” Abbott said last week, reiterating support for a three-milligram-per-serving THC cap for “non-intoxicating” hemp.

Advocates say the Senate’s vote ignores that directive. “Rather than addressing the issue with facts, science, and sound public policy, the Senate has chosen to defy the clear directive of the governor’s special session call, which is to regulate these products, not ban them outright,” said Heather Fazio of the Texas Cannabis Policy Center.

A House companion bill, HB 5, was introduced earlier this week. Sponsor Rep. Gary VanDeaver (R) called it a “starting point” and suggested the measure could be revised after public testimony. That gives hope to hemp stakeholders and patient advocates, who fear the ban would wipe out an industry employing an estimated 53,000 Texans and restrict access to therapeutic cannabinoids outside the state’s limited medical marijuana program.

Meanwhile, Democratic senators countered SB 5 by introducing a bill to regulate hemp products with a five-milligram THC cap and a separate proposal to legalize adult-use cannabis outright. Rep. Jessica González (D) also filed HB 195, which would legalize up to 2.5 ounces of marijuana for adults 21 and older.

As SB 5 heads to the House, the tension between prohibition and regulation is growing sharper. Abbott has signaled he wants a compromise, but with law enforcement largely backing a ban and the hemp industry mobilizing to save itself, the special session could determine the future of Texas’s $8 billion hemp market.

📈 Dog Walkers

$MTLNF ( 0.0% ) MTL Lands Formal Bank Loan

What’s Going On Here: MTL Cannabis Corp. just landed a $27 million credit facility with a top-tier Canadian Schedule 1 bank, giving the company fresh firepower to fuel growth, cover working capital, and wipe out legacy debt tied to the old Canada House Cannabis Corp.

The deal is structured as a mix of revolving and term facilities, including a $4 million AR-backed revolver, two three-year term loans totaling nearly $19 million, and an additional $4.1 million delayed-draw option. All are secured against company assets and its Louiseville, QC property, with rates tied to Prime or CORRA plus margin.

CEO Michael Perron called the financing a “vote of confidence” in MTL’s management and growth trajectory, while Chairman Richard Clement dubbed it “the final chapter” in cleaning up Canada House’s pre-merger liabilities. Those include more than $18 million in debentures and acquisition-related debt, now fully refinanced.

With the balance sheet reset and access to scalable capital, MTL is positioning itself to push harder on expansion while leaving its predecessor’s financial baggage firmly in the rearview mirror.

$AYRWF ( ▼ 9.0% ) AYR RSA Is Underway

What’s Going On Here: AYR Wellness has entered a Restructuring Support Agreement (RSA) with a supermajority of its senior noteholders, setting the stage for a major debt overhaul and ownership transition. Under the plan, creditors will acquire AYR’s core assets in Florida, Ohio, Nevada, New Jersey, Pennsylvania, and Virginia via an Article 9 credit bid, forming a “NewCo” that will house the business going forward.

To keep the lights on during the process, noteholders are providing a $50M senior secured bridge facility at a PIK-heavy 14% interest rate, with the option to convert into equity in NewCo. Upon closing, the bridge debt flips into a new take-back facility, while noteholders receive 100% of NewCo’s equity (subject to dilution) in exchange for canceling the credit bid portion of their debt.

Remaining assets will be liquidated through Canadian CCAA and state-level proceedings, with proceeds flowing down the creditor waterfall. Interim CEO Scott Davido called the RSA a “major milestone” in charting a path to deleverage and preserve value, though it effectively marks the end of AYR in its current form.

🗞️ The News

📺 YouTube

The State of Cannabis Capital: What Comes Next | TTB Powered by Dutchie

What we will cover:

✅ Could President Trump reschedule cannabis with the stroke of a pen?

In this episode of Cannabis in Five, Shadd Dales breaks down the scenario everyone’s talking about: what happens if the President signs an executive order to reclassify cannabis from Schedule I to Schedule III under the Controlled Substances Act.

We unpack what the first 48 hours could look like, how the DOJ and DEA could fast-track the process without public hearings, and why Section E11D of DEA regulations may give the Biden or Trump administration all the authority they need. No new science. No congressional vote. Just a move that changes the federal status of cannabis overnight.

You’ll also hear: • Why Congress isn’t needed for this to happen • How groups like SAM may try — but fail — to stop it • What Schedule III actually means for businesses, taxes, and medical access • And why this plays right into Trump’s political playbook