💸 The Tape

As Ohio lawmakers continue to hash out major changes to the voter-approved cannabis law passed in 2023, a growing chorus of advocates—and at least one legal scholar—are raising a thorny question: can they even do that?

According to Derek Clinger, a legal analyst at the University of Wisconsin’s State Democracy Research Initiative, the answer might be: not so fast. In a webinar hosted by Ohio State’s Drug Enforcement and Policy Center, Clinger argued that the Ohio Constitution’s statutory initiative clause isn’t just symbolic. It may actually prevent the legislature from watering down a law voters approved at the ballot box.

“This isn’t legislative graffiti,” Clinger said. “It’s a power-sharing arrangement.” While lawmakers can pass laws to facilitate implementation, he noted, they’re not supposed to restrict or undermine the will of voters.

Cue SB 56 and HB 160, the bills in question. Critics say they do exactly what the Constitution warns against: claw back key provisions from Issue 2, including social equity funds, legal homegrow, and even the ability to share a joint between friends.

Karen O’Keefe of the Marijuana Policy Project called the original bills “alarming,” though she conceded that public pushback has softened the Senate’s stance—somewhat. Among the bright spots: proposed felony penalties for cannabis sharing have been axed, and tax revenue allocated to local governments has increased to 25 percent—still short of the 36 percent voters approved, but up from zero in the Senate’s first draft.

Even so, other changes remain contentious. Under the revised legislation, you can only share cannabis if it was purchased from an Ohio retailer—a move critics argue punishes compassionate caregiving.

Meanwhile, homegrown weed can’t be gifted, THC-infused drinks would carry a $3.50 per gallon tax, and intoxicating hemp products might soon be exclusive to dispensaries.

Still, lawmakers insist they're listening. Rep. Jamie Callender (R) told constituents that “you’ve made a difference”—though many advocates are still bracing for a final product that only kinda-sorta reflects what they voted for.

So, will the courts step in? Clinger thinks they might, especially if lawmakers keep pushing boundaries. Until then, Ohioans are left watching what was meant to be a people-powered cannabis revolution morph into a backroom rewrite.

Welcome to democracy—Ohio-style.

📈 Dog Walkers.

Apollo Presents Plan for $LABS.TSX ( ▲ 7.69% ) 

What’s Going On Here:Apollo Technology Capital Corporation, a major shareholder of MediPharm Labs Corp. (TSX: LABS), has issued a forceful appeal to fellow investors, presenting a turnaround plan aimed at increasing the company’s share price 10x or more and rescuing it from what Apollo describes as the brink of insolvency.

In a bold presentation, Apollo accuses MediPharm’s current leadership of reckless mismanagement, value destruction, and unjustifiable executive compensation. The firm is advocating for the immediate election of six new directors via the GOLD proxy card, pledging swift implementation of cost-cutting, operational optimization, and shareholder value creation.

Apollo’s campaign calls on shareholders to reject the company’s green proxy card and support new leadership to "stop the bleeding and restore confidence."

Bottom Line: The activist campaign is turning up the heat—MediPharm's next chapter could be decided by who wins this boardroom battle.

Full Presentation

Minnesota Goes BIG On Taxes

What’s Going On Here: In a surprise move during a special session, the Minnesota Senate passed a bill that raises the state tax on recreational cannabis from 10% to 15% and eliminates the 20% revenue share with local governments—just as the market prepares to launch.

The hike positions Minnesota among the top six highest-taxed cannabis states, on par with Illinois and Oregon. Supporters argue it aligns with Gov. Walz’s original proposal and helps shore up future budget deficits. But critics warn it could cripple the legal market before it begins.

Sen. Lindsey Port and cannabis lobbyists called it a “gift to the illicit market,” warning it undermines legalization’s intent and punishes new entrepreneurs and municipalities without offering them adequate support.

🗞️ The News

📺 YouTube

Texas Veto Rumors & Cannabis Banking Latest News | Trade to Black

What we will cover:

✅ Shadd Dales and Anthony Varrell return from the Benzinga Cannabis Capital Conference in Chicago, where they spent two full days talking with operators, investors, and financial players across the industry. A lot of conversations centered around banking access, capital constraints, and how companies are adjusting to ongoing market realities.

Terry Mendez, CEO of Safe Harbor Financial (NASDAQ: SHFS), who was also at Benzinga will join us to share his take on what’s happening in cannabis banking—what institutions are saying behind closed doors and whether real progress is possible anytime soon.

On the corporate side, Safe Harbor has made some notable moves: a reverse split to stay compliant with Nasdaq, debt restructuring that freed up $6 million in capital, and a refreshed leadership team. They’re aiming to stabilize and position the company for growth in fintech beyond just cannabis.

Plus, Michael Bronstein, president of ATACH, joins us with updates on cannabis legislation in key states. We ask him about Pennsylvania’s adult-use efforts, and more importantly, the rumor out of Texas—that Governor Greg Abbott may be planning to veto SB3, the hemp regulation bill. Is it real? What’s the motive? Michael breaks down what he’s hearing, how credible the veto talk is, and what could happen next if the bill is blocked. If true, it could delay Texas’s regulatory overhaul and signal continued resistance from the top.