💸 High Impact

The DEA’s Bias Is On Full Display

The DEA is at it again, and this time they’re bringing the red pen to the witness list for the upcoming hearing on banning two psychedelic compounds, DOI and DOC. In a move that’s drawing plenty of side-eye, the agency has rejected several expert witnesses proposed by Students for Sensible Drug Policy (SSDP) and Panacea Plant Sciences, calling their testimony “incompetent, irrelevant, immaterial, and/or unduly repetitious.” The real kicker? The DEA’s rationale sounds more like nitpicking procedural details—improper pagination, lack of specific testimony summaries—than a genuine attempt to engage with the scientific community.

What’s the DEA so afraid of? Well, it’s not hard to spot the bias here. By rejecting the testimony of leading neuroscientists and pharmacologists, the DEA seems more interested in curating a favorable narrative than in having a real debate about the potential therapeutic value of DOI and DOC. This looks less like responsible regulation and more like an effort to suppress any inconvenient science that might undermine the agency's push to slap a Schedule I label on these substances.

And here’s where things get even more interesting: the DEA has a big cannabis-related Administrative Law Judge (ALJ) hearing on the horizon. As part of the broader conversation on rescheduling marijuana, the upcoming hearing will assess whether cannabis should remain in the same draconian category as heroin and LSD. If the DOI and DOC hearings are any indication, the DEA may attempt to repeat its performance—stacking the deck, excluding key testimony, and making sure the data that challenges their position is left out in the cold.

But this strategy could backfire. If the DEA continues to lean on procedural roadblocks to dodge substantive debate, it risks undermining its credibility with the tribunal and the public. After all, if the science really supports the agency’s position, why muzzle the experts? Why not let the neuroscientists have their day in court? It’s almost as if the DEA fears that a full airing of the evidence could lead to uncomfortable conclusions—namely, that DOI, DOC, and cannabis might have more to offer than just "potential for abuse."

The implications for the cannabis rescheduling hearing are clear. If the DEA employs the same tactics, expect more fireworks as advocacy groups and researchers push back. With the public increasingly in favor of cannabis reform, and a growing body of scientific research supporting its medical benefits, the DEA may find itself losing ground. Blocking experts in the psychedelic case could be a preview of an even bigger showdown over cannabis, one where the agency’s credibility and motivations will be under the microscope. Stay tuned—this legal drama is far from over.

📈 Dog Walkers

Gold Flora Can’t Catch A Break

Gold Flora Corporation (Cboe Canada: GRAM) is feeling the heat after a Delaware court gave the green light to sanctions brought by former directors of its subsidiary, Left Coast Ventures (LCV). The court ruled that Gold Flora and LCV are on the hook for about $1.65 million in legal fees related to LCV's indemnification obligations. While it’s not a full-blown receivership, the court has appointed Molly DiBianca of Clark Hill PLC as a limited receiver with one job—ensure those legal bills get paid. DiBianca has 59 days to sort things out, ideally using Gold Flora’s operating cash flow. The lawsuit, which began in 2021, has snowballed to include new defendants like TPCO Holding Corp., which recently merged with Gold Flora. Looks like Gold Flora is facing a legal headache, but at least the damage is being kept to a tidy $1.65 million—for now.

High Tide Adds New Toronto Location

High Tide Inc. (Nasdaq: HITI) just expanded its footprint with a shiny new Canna Cabana location at 201 Danforth Avenue, Toronto, bringing the total to 184 stores across Canada. Nestled in the heart of Greektown, this prime spot is poised to rake in foot traffic, thanks to its proximity to bustling attractions like the Broadview subway station and Danforth Music Hall. Not to mention, it's right across from a provincial liquor store—a one-stop shop for all your weekend needs. CEO Raj Grover is clearly pleased, emphasizing how this high-density location with 250,000 residents within a three-kilometer radius gives High Tide plenty of room to grow its Cabana Club membership. With Toronto in its sights, High Tide is ready to light up the competition and keep expanding throughout 2024 and beyond.

Rubicon Organics Launches Fourth ESG Report

Rubicon Organics (TSXV: ROMJ) is taking the high road with its latest Environmental, Social, and Governance (ESG) report, proving it’s not just growing cannabis—it’s growing responsibly. In 2023, Rubicon slashed its carbon footprint by 48%, thanks to a BC Hydro upgrade, and ramped up landfill waste diversion to 66%, turning waste into biofuel. Employee satisfaction? Up, with voluntary turnover down by 14%. CEO Margaret Brodie proudly touts Rubicon’s leadership in ESG, setting industry benchmarks and building a resilient, sustainable cannabis operation that’s as green as its product.

Tilray Launches Charlottes Web In Canada

Tilray Brands (Nasdaq: TLRY) is spicing things up in Canada with the launch of Charlotte’s Web CBD gummies. Perfect for daily CBD users, these gummies come in two delicious varieties: Rest Gummies (Berry & Fruit) for winding down, and Life Gummies (Turmeric & Ginger) to help you power through the day. Each gummy packs 25mg of premium full-spectrum CBD, blended with functional herbs for that extra wellness kick. Crafted in British Columbia’s Okanagan Valley, these tasty treats are now available in Ontario, with more provinces joining the party soon. Wellness has never tasted this good—chew on that!

👾 Number Of The Day

$36.17 The average price of a vape pen in the last 90 days in Maryland.

🗞️ The News

High Tide Opens New Canna Cabana in Toronto

Rubicon Organics Announces Fourth Annual Environmental, Social, & Governance Report

Tilray Brands Launches Charlotte’s Web™ CBD Gummies in Canada

Gold Flora Confirms Receipt of Order Granting Limited Purpose Receivership

Trump And Harris Need To Stop Pandering On Marijuana And Offer Concrete Plans For An Equitable Industry (Op-Ed)

Hemp Industry Advocates Ask Court To Halt California’s Ban On Products With Any ‘Detectable Amount’ Of THC Amid Legal Challenge

📺 YouTube

Cannabis: Ohio Continues Boom with $87m Reported in September | Trade to Black

What we covered:

✅ On our latest Trade To Black podcast, we dive into the latest numbers out of Ohio, where the state reported yesterday that over $87 million was generated in September, nearly doubling the figures from August in only its second month of adult-use cannabis sales.

Hirsh Jain Founder of Ananda Strategy will join us on from Ohio to talk about the numbers and the growing sentiment in the midwest state.

We also touch on the significant announcement from earlier this week involving multi-state operator Trulieve (OTC: TCNNF), which filed a defamation lawsuit against the Republican Party of Florida and two media outlets over what it claims are false and misleading advertisements regarding a cannabis legalization amendment proposal it is backing.

Plus, Elliot Lane from Benzinga joins us to preview next week's major event in Chicago for the cannabis industry, the Benzinga Cannabis Capital Conference discussing what investors can expect and the topics that will be covered.