💸 The Tape

In a forceful amicus brief filed this week, the Americans for Prosperity Foundation (AFPF) urged the U.S. Supreme Court to rein in federal overreach under the Controlled Substances Act (CSA), arguing that applying the law to state-licensed cannabis businesses operating solely within Massachusetts violates bedrock federalism principles.

AFPF frames the case not as a dispute over marijuana policy but as a test of the constitutional limits of federal power. The Constitution, the group argues, grants states—not Congress—the general power of governing, reserving federal authority only where explicitly delegated. Because the businesses in question operate entirely intrastate and are regulated from seed to sale under Massachusetts law, AFPF says their activities fall squarely within state police powers and lack any demonstrated connection to interstate commerce.

Central to the brief is a direct challenge to the Supreme Court’s 2005 ruling in Gonzales v. Raich, which allowed federal prohibition to override state-legal medical marijuana activity. AFPF calls Raich an “outlier” that “tramples on States’ core power” to regulate local conduct. The brief criticizes Raich’s broad Commerce Clause interpretation, saying it empowered Congress to regulate activities with no proven effect on interstate trade based solely on an unbounded “rational basis” theory—one AFPF says is historically unsupported and constitutionally flawed.

AFPF argues that today’s petitioners—Canna Provisions, Gyasi Sellers, Wiseacre Farm, and Verano Holdings—are uniquely strong challengers because their operations are both intrastate and tightly regulated. Modern state cannabis systems use robust track-and-trace technology, undermining Raich’s assumption that legal cannabis is indistinguishable from illicit interstate marijuana flows.

The foundation urges the Court to grant certiorari and formally overrule Raich, asserting that the decision has warped Commerce Clause doctrine and invited excessive federal control over areas the framers deliberately left to the states. Restoring constitutional limits, AFPF says, would reinforce dual sovereignty, not weaken federal authority.

The underlying petition was filed last month by Boies Schiller Flexner LLP, and the Justice Department notably declined to offer a position on whether the Court should take the case—leaving the decision squarely with the justices.

📈 Dog Walkers

$VEXTF ( ▼ 1.53% ) Reports Q3

Vext Science (CSE: VEXT / OTCQX: VEXTF) delivered another strong quarter, reporting Q3 2025 revenue of $12.7 million, a 41% year-over-year increase, driven by expanding Ohio retail operations and resilient performance in Arizona. Year-to-date, the company generated $8.5 million in operating cash flow, a dramatic improvement from $(0.7) million YTD in Q3 2024, signaling a meaningful turnaround in cash generation.

CEO Eric Offenberger highlighted Ohio as a continued “growth engine,” with the state now contributing higher-margin retail revenue as Vext scaled to five consolidated dispensaries. The company remains on track to reach Ohio’s license cap of eight dispensaries in 2026, positioning Vext to fully capitalize on the early phases of the state’s expanding adult-use market.

In Arizona—where pricing pressure and demand fluctuations challenged the broader market—Vext continued to outperform on a per-store basis, underscoring the strength of its vertically integrated operations and disciplined cost structure.

• Adjusted EBITDA came in at $2.1 million, compared to $2.9 million in Q3 2024.
• Adjusted EBITDA margin compressed to 16.7%, down from 30% in Q2 and 32% last year, reflecting mix shifts and quarterly inventory builds.
• Net cash from operations totaled $1.3 million, with management expecting Q4 cash flow to improve as inventory created in Q3 is drawn down.

A key development this quarter was the regulatory approval to transfer ownership of the Herbal Wellness Center dispensary in Portsmouth, Ohio, officially completed on October 1, 2025. This acquisition further strengthens Vext’s foothold in one of the nation’s fastest-growing cannabis markets.

With strong cash generation, a growing Ohio platform, and durable operations in Arizona, Vext believes it is "operating from a position of strength" heading into 2026—well-positioned to deliver sustainable, profitable growth for shareholders.

Ohio Is Getting Closer

Ohio lawmakers say they’re close to finalizing a long-awaited plan to regulate the state’s cannabis landscape—one that bans intoxicating hemp, protects voter-approved marijuana rights, and shares tax revenue with cities hosting dispensaries.

After a two-year policy tug-of-war, legislators say a tentative agreement is in place, and a bill that would ban intoxicating hemp and low-level THC products—including THC beverages—is expected to pass this week.

Rep. Tex Fischer (D–Youngstown) says the House spent months trying to preserve access to hemp-derived products, but ultimately “lost leverage” once the federal government enacted its own nationwide hemp ban. Under the emerging proposal, all intoxicating hemp products would be prohibited in Ohio.

But Rep. Jamie Callender (R–Cleveland) says the House did secure major wins on the adult-use marijuana side.

The forthcoming legislation would:

• Guarantee the full home-grow rights that voters approved: 6 plants per adult, 12 per household

• Allocate cannabis tax revenues to municipalities that host dispensaries

• Clarify THC limits and product access to protect the voter-approved adult-use framework

Fischer argues that THC beverages haven’t caused public safety issues in Ohio and shouldn’t be swept into a ban simply because Washington changed federal law.

Callender, meanwhile, raised concerns about civil liberties—specifically whether being a medical marijuana patient, licensed operator, or frequent dispensary customer could be used as grounds for searches or legal scrutiny under new enforcement rules.

As lawmakers move quickly to finalize the deal, the state faces a delicate balance: aligning with federal restrictions on hemp while upholding Ohioans’ vote for legal cannabis and ensuring cities share in the industry’s economic benefits.

🗞️ The News

📺 YouTube

TerrAscend and the Road Ahead For The Cannabis Industry w Jason Wild | TTB Presented by Dutchie

What we will cover:

✅ In this episode of Trade To Black, hosts Anthony Varrell and Shadd Dales sit down with Jason Wild, Chairman of TerrAscend (TSND / TRSSF), for one of the most anticipated conversations in the cannabis industry. Fresh off TerrAscend’s latest earnings release, Jason breaks down revenue performance, margin improvements, cash-flow milestones, wholesale momentum, and how the company is positioning itself for a transformative 2026 as U.S. cannabis enters a new regulatory era.

We cover everything investors want to know: • TerrAscend’s Q3 results and operational highlights • State-level catalysts: Pennsylvania, New Jersey, Maryland, Michigan • How TSND is preparing for federal reform and potential Schedule III implementation • The outlook for rescheduling, SAFE Banking, 280E relief, and uplisting • Why 2026 could be the most important year in cannabis since 2018 • The evolving competitive landscape among MSOs • Consumer trends, pricing normalization, and product-level innovation

Jason also dives into the broader cannabis sector: the pressures facing multi-state operators, the impact of hemp-derived THC products on regulated markets, capital-market bottlenecks, and why institutional money is still waiting on the sidelines. His insights into federal politics, upcoming state expansions, and timelines for regulatory clarity offer a grounded outlook for investors seeking real data—not hopium.