💸 The Tape

Two Florida Democratic members of Congress are calling on the federal government to investigate what they describe as a potentially illegal diversion of state Medicaid funds to politically connected nonprofits that ultimately funneled millions of dollars into a campaign opposing marijuana legalization in Florida.

In a letter sent Thursday, Reps. Kathy Castor and Darren Soto urged the Department of Health and Human Services (HHS) inspector general and Centers for Medicare and Medicaid Services (CMS) Administrator Mehmet Oz to probe what they say may be “Medicaid fraud.” The focus is on a $10 million donation from a legal settlement made to the Hope Florida Foundation, a nonprofit founded by First Lady Casey DeSantis, which subsequently funded groups that backed opposition to Amendment 3, a 2024 ballot initiative that sought to legalize cannabis for adults in Florida.

The lawmakers allege the money—originally from a Medicaid-related settlement with Centene Corp.—was intended for healthcare services, not political activity. “Any unlawful diversion of Medicaid dollars in Florida means the state is less able to provide services to our neighbors who rely on Medicaid,” Castor and Soto wrote, citing federal statutes that prohibit such misuse.

The allegations follow investigative reports from the Tampa Bay Times and Miami Herald, which outlined how the $10 million was routed from the DeSantis-aligned foundation through nonprofits to the PAC Keep Florida Clean Inc., which spent heavily to defeat Amendment 3. The PAC was created and operated by DeSantis’s then-chief of staff, James Uthmeier.

The complaint has triggered bipartisan concern. Even Republican state Rep. Alex Andrade, who chaired a legislative inquiry into the funding, admitted the issue could involve federal Medicaid violations, calling it a potential “conspiracy to commit money laundering and wire fraud.”

The controversy unfolds as DeSantis and the Florida legislature ramp up barriers to future ballot initiatives, including a new law requiring backers to post a $1 million bond before petitioning. Critics argue it’s a blatant attempt to suppress citizen-driven reforms like marijuana legalization and Medicaid expansion.

Despite Amendment 3 failing to meet the 60% threshold in 2024, supporters—including cannabis giant Trulieve—are preparing a 2026 relaunch. But new legal and regulatory headwinds threaten to stifle the campaign, which is also fighting a $120,000 fine and a potential criminal probe tied to petition submission deadlines.

The issue may now test the federal government’s willingness to hold Florida accountable for the politicization of healthcare dollars—and deepen tensions over DeSantis’s handling of drug policy and democratic participation in the state.

📈 Dog Walkers.

$IXHL ( ▼ 4.55% ) Is Making Some Waves 

What’s Going On Here: Incannex Healthcare (Nasdaq: IXHL) announced on May 15, 2025, that it entered into agreements with holders of its Series A Warrants that could reduce up to 50.4% of the underlying shares. Through these Letter Agreements, Incannex may use proceeds from its at-the-market (ATM) offering with A.G.P/Alliance Global Partners to cancel up to 5.8 million warrant shares, provided the company first allocates approximately $12.5 million in net proceeds toward this cancellation.

This move could significantly lower potential dilution from Series A Warrants, which are not yet exercisable pending stockholder approval at the May 27, 2025 special meeting. CEO Joel Latham highlighted the deal as a proactive step to protect shareholders while advancing Incannex’s lead candidate, IHL-42X, for obstructive sleep apnea.

Curaleaf Expands In Ohio

What’s Going On Here: Curaleaf Holdings (TSX: CURA, OTCQX: CURLF) has officially opened its newest dispensary in Lima, Ohio, located at 2151 Elida Rd., marking its third store in the state and expanding its nationwide retail footprint to 152 locations.

The new dispensary will cater to both medical patients and adult-use customers, featuring a drive-through pick-up window and a selection of top brands such as Select BRIQ vapes, Grassroots flower, JAMS edibles, and Find flower.

Operating hours are 9 AM to 8 PM (Mon–Sat) and 9 AM to 7 PM (Sun). A ribbon-cutting with the Lima Chamber of Commerce and a grand opening celebration will follow, with exclusive gifts and promotions.

Chairman and CEO Boris Jordan emphasized Curaleaf’s commitment to a customer-first, community-focused retail experience in Ohio’s growing cannabis market.

🗞️ The News

📺 YouTube

Trump’s DEA Pick Leads Biggest Cannabis Development This Week | Trade to Black

What we will cover:

✅ Host Shadd Dales breaks down TDR’s biggest cannabis development of the week — and it revolves around President Donald Trump’s pick to lead the DEA, Terry Cole.

Cole has avoided taking a firm stance on federal marijuana rescheduling, raising serious concerns from reform advocates and cannabis investors. His long-standing opposition to legalization, paired with vague Senate testimony, signals that the Trump administration may pivot toward a more enforcement-driven approach to cannabis at the federal level.

Shadd also recaps a busy week in earnings: • Glass House Brands (NEO: GLAS.A.U / OTCQX: GLASF) crushed Q1 with $44.8M in revenue and $4.4M in Adjusted EBITDA. • Planet 13 (CSE: PLTH / OTCQX: PLNHF) grew revenue 22.5% to $28M, but margins tightened. • Ascend Wellness (CSE: AAWH.U / OTCQX: AAWH) posted $128M in revenue with $27M in Adjusted EBITDA — but losses grew to $19.3M.