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- đż Texas Is Turning Into A Bonafide Sh*t Storm.
đż Texas Is Turning Into A Bonafide Sh*t Storm.
GM Everyone,
RIP AYR Wellness. One of many. A casualty of Amendment 3.
đ¸ The Tape
The Texas Senate has once again voted to criminalize most consumable hemp products, approving SB 5 on second reading in a 20â9 vote during the stateâs 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 âloopholesâ exploited by manufacturers to sell intoxicating products under federal hemp laws. âThe ability to regulate this is not doable,â Perry argued on the Senate floor. âIf you regulate an illegal substance today, it just gives it credit and legitimacy that it didnât have before.â
The move comes despite Gov. Greg Abbottâs 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 âhighly regulatedâ market for low-THC hemp products. âIâm not in favor of a total ban,â Abbott said last week, reiterating support for a three-milligram-per-serving THC cap for ânon-intoxicatingâ hemp.
Advocates say the Senateâs vote ignores that directive. âRather than addressing the issue with facts, science, and sound public policy, the Senate has chosen to defy the clear directive of the governorâs special session call, which is to regulate these products, not ban them outright,â 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 âstarting pointâ 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 stateâs 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 GonzĂĄlez (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 Texasâs $8 billion hemp market.
đ Dog Walkers
$MTLNF ( 0.0% ) MTL Lands Formal Bank Loan
Whatâs 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 âvote of confidenceâ in MTLâs management and growth trajectory, while Chairman Richard Clement dubbed it âthe final chapterâ in cleaning up Canada Houseâs 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 predecessorâs financial baggage firmly in the rearview mirror.
$AYRWF ( âź 97.3% ) AYR RSA Is Underway
Whatâs 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 AYRâs core assets in Florida, Ohio, Nevada, New Jersey, Pennsylvania, and Virginia via an Article 9 credit bid, forming a âNewCoâ 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 NewCoâs 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 âmajor milestoneâ in charting a path to deleverage and preserve value, though it effectively marks the end of AYR in its current form.
đď¸ The News
đş YouTube
The State of Cannabis Capital: What Comes Next | TTB Powered by Dutchie
What we will cover:
â Could President Trump reschedule cannabis with the stroke of a pen?
In this episode of Cannabis in Five, Shadd Dales breaks down the scenario everyoneâs 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.
Youâll also hear: ⢠Why Congress isnât needed for this to happen ⢠How groups like SAM may try â but fail â to stop it ⢠What Schedule III actually means for businesses, taxes, and medical access ⢠And why this plays right into Trumpâs political playbook