💸 The Tape

Terrance Cole, President Donald Trump’s pick to lead the Drug Enforcement Administration (DEA), is refusing to take a clear position on the federal marijuana rescheduling process, frustrating cannabis reform advocates and signaling a cautious approach if confirmed.

In written responses to Senators Cory Booker (D-NJ) and Alex Padilla (D-CA), Cole avoided direct answers on whether he supports moving marijuana from Schedule I to Schedule III under the Controlled Substances Act (CSA). Instead, he repeatedly deferred, stating he would “give the matter careful consideration” after consulting with DEA personnel and reviewing current regulatory processes.

Cole’s answers echoed his comments during his Senate Judiciary Committee hearing last month, where he acknowledged the rescheduling process has been delayed but stopped short of endorsing any specific outcome. “I’m not familiar exactly where we are, but I know the process has been delayed numerous times—and it’s time to move forward,” he told Padilla at the time.

Despite leading Virginia’s Public Safety and Homeland Security department and overseeing the state’s Cannabis Control Authority, Cole has historically expressed skepticism toward marijuana reform. In 2023, he quipped on LinkedIn, “Everybody knows my stance on marijuana after 30 plus years in law enforcement, so don’t even ask!”

His track record includes publicly linking cannabis use to youth suicide risks and opposing broader legalization measures. This has raised concerns about how he might influence DEA’s final decision on rescheduling, a process initiated under the Biden administration and currently stalled amid administrative hearings and legal challenges.

While Cole avoided specifics on marijuana enforcement in states with legal markets, he suggested forming a working group to examine federal-state conflicts, responding to inquiries from Sen. Thom Tillis (R-NC).

Cole’s cautious tone comes as the DEA faces mounting pressure to reconcile federal marijuana policy with widespread state-level legalization. Yet, with his nomination, Trump’s administration appears to be pivoting toward a more enforcement-first approach. Cole replaced Trump’s initial DEA pick, Chad Chronister, a Florida sheriff who had supported decriminalization but withdrew amid conservative backlash.

The DEA’s rescheduling process remains on hold under acting Administrator Derek Maltz, another vocal marijuana opponent. Reform advocates fear Cole’s confirmation would further stall or derail progress, despite growing bipartisan support for rescheduling.

Meanwhile, a recent political ad campaign funded by the cannabis industry has ironically attacked the Biden administration for slow-walking rescheduling, even though the effort began under Trump.

As Cole’s confirmation moves forward, the fate of marijuana policy reform under the DEA remains uncertain, hinging on whether Cole’s “careful consideration” translates into meaningful action—or continued inaction.

📈 Dog Walkers.

Planet 13 Reports

What’s Going On Here: Planet 13 Holdings Inc. (CSE: PLTH) (OTCQX: PLNH) reported Q1 2025 revenue of $28.0M, up 22.5% year-over-year, driven by Florida expansion. Gross profit was $12.0M (42.8% margin), down from 45.8% last year due to pricing pressure. Expenses rose 31.6% to $18.6M with the addition of Florida operations. Net loss improved to $2.0M (vs. $5.9M prior year), but Adjusted EBITDA showed a $2.5M loss due to reduced operating leverage.

Cash declined to $15.6M from $23.4M, with assets at $203.8M. Key recent developments include three new Florida dispensary openings (Port Richey, Orange Park, Edgewater) and a significant fund recovery related to El Capitan. Management is focused on operational efficiency and strategic asset prioritization to navigate market challenges.

Bottom line: Ok quarter. Don’t like the depletion of cash.

$GLASF ( ▼ 8.61% ) and $LEEEF Partner Up

What’s Going On Here: Glass House Brands Inc. and LEEF Brands, Inc. have entered into a Management Services Agreement (MSA), under which Glass House will manage LEEF’s Palm Desert dispensary, The LEAF El Paseo, for an initial one-year term. This partnership allows Glass House to expand its retail footprint in California while LEEF focuses on its core concentrate extraction business.

The agreement also includes an off-take deal securing a significant portion of LEEF’s annual raw cannabis supply for extraction. This is Glass House’s first retail management services deal, a new strategy launched in 2024.

Both companies see this as a win-win: Glass House gains more retail exposure, while LEEF ensures supply chain stability. Palm Desert’s strong tourism appeal makes this partnership especially strategic for both brands.

Bottom line: Great to see some partnerships forming in California.

🗞️ The News

📺 YouTube

Jushi Earnings, Rubicon Organics Rise, & PA Senate Blocks State Run Model | Trade to Black

What we will cover:

✅ Shadd Dales and Anthony Varrell line up a powerhouse duo of interviews — from capital markets to federal reform.

First up, they sit down with Margaret Brodie, CEO of Rubicon Organics (TSXV: ROMJ), to talk about raising capital in this tough environment, the strategic value of being organic-certified, and what she learned from a recent trip to Germany. It’s a real look into what premium positioning means in today’s market.

Then, it’s over to Jim Cacioppo, CEO of Jushi Holdings (OTCQX: JUSHF), who breaks down the company’s latest earnings — $63.8 million in revenue and $9.8 million in adjusted EBITDA — and how their “7 and 7” retail-first strategy is pushing ahead despite price compression and tight liquidity.