💸 The Tape

Pennsylvania’s Senate Law and Justice Committee has rejected a House-passed bill to legalize recreational marijuana through a state-run store model, delivering a major blow to the proposal and signaling the need for significant revisions. The panel voted 7-3 on Tuesday against the measure, HB 1200, sponsored by Democratic Reps. Rick Krajewski and Dan Frankel.

The defeat was expected, as Senate Republicans—and even some Democrats—have consistently opposed the idea of having the state manage cannabis sales, similar to Pennsylvania's liquor control system. Sen. Dan Laughlin (R), a leading GOP advocate for legalization, reiterated his stance, saying “the state being involved in selling cannabis and alcohol is just the wrong message to send.”

Laughlin emphasized that Gov. Josh Shapiro (D), despite supporting adult-use legalization, has yet to actively build consensus. “If there’s a path to getting adult-use cannabis passed, the governor himself is going to have to roll his sleeves up,” he said.

Democrats on the panel, while supportive of legalization in principle, acknowledged the political reality. Sen. Lisa Boscola (D) questioned why Laughlin didn’t advance his own bipartisan bill, which would establish a traditional private sales model. Laughlin responded that “we’re not ready,” citing ongoing stakeholder discussions.

The state-run store model faced opposition from the alcohol industry, which raised concerns about shelf space and logistical challenges of adding federally illegal products to state stores. Business groups, law enforcement, and Republican lawmakers also voiced concerns about impaired driving, workplace safety, and the rushed legislative process.

Polling consistently shows that Pennsylvanians favor legalization, but prefer private businesses—not state-run stores—handling retail sales. Gov. Shapiro has not endorsed the state-store model specifically and acknowledged that a final bill would require bipartisan compromise.

House Speaker Joanna McClinton (D) and Rep. Abby Major (R), who is working on a competing private-market legalization bill, both indicated that negotiations must move forward. Major criticized HB 1200’s inefficiency and legal risks, advocating for a market-driven approach instead.

The rejection of HB 1200 does not end Pennsylvania’s legalization debate but shifts focus toward crafting a new, politically viable proposal. With bipartisan bills in the works, lawmakers aim to balance public demand for reform with regulatory and economic concerns.

While HB 1200’s defeat slows momentum, the conversation is far from over. As Sen. Sharif Street (D) noted, “The Senate will make changes. This could still be the vehicle that ends prohibition in Pennsylvania.”

📈 Dog Walkers.

Glass House Crushes Earnings

What’s Going On Here: Glass House Brands Inc. reported Q1 2025 revenue of $44.8M, up 49% year-over-year, despite a 15% sequential decline. Gross profit hit $20.1M with a 45% margin, while Adjusted EBITDA reached $4.4M, a solid turnaround from last year's loss. Operating cash flow came in at $2.5M. Production surged 149% to 152,568 pounds, with costs dropping 41% to $108/pound.

CEO Kyle Kazan praised the team’s performance against California’s tough market, citing retail revenue growth of 19% versus the state’s 13% decline. Strategic initiatives include the Greenhouse 2 expansion, projected to add 275K pounds in 2026, and hemp ventures with UC Berkeley. A new $50M credit facility extends debt maturity to 2030, improving financial flexibility.

Bottom line: Kyle and Graham will be on within the week to talk shop. This was an impressive print.

Grown Rogue Is Having Some Growing Problems

What’s Going On Here: Grown Rogue International Inc. (CSE: GRIN) (OTC: GRUSF) reported Q1 2025 results with pro forma revenue up 7% to $7.15M, while pro forma Adjusted EBITDA fell 31% to $1.57M (22% margin). On a reported basis, revenue dropped 16% to $5.58M with Adjusted EBITDA declining 65% to $0.80M (14% margin).

• Oregon: Revenue dipped 6%, Adjusted EBITDA down 16%. Cost per pound improved 11% to $414, but "A" flower ASP fell 23% to $661.

• Michigan: Revenue fell 22%, Adjusted EBITDA dropped 40%. Cost per pound down 12% to $430, "A" flower ASP down 27% to $817.

• New Jersey (ABCO): Contributed $1.77M revenue and $0.77M EBITDA (43% margin) in its first reported quarter.

Highlights include a $7M credit facility at ~9% interest, conversion of $3.3M in debt, and the opening of Nile dispensary in NJ. The company also launched infused pre-rolls in Oregon.

Bottom line: Yikes.

🗞️ The News

📺 YouTube

Should the UK Legalize Cannabis? Exploring the Controversy! | Trade to Black

What we will cover:

✅ Host Shadd Dales explores one of the most pressing questions in international cannabis reform: Should the UK legalize cannabis? As the global cannabis industry continues to evolve—with countries like Germany embracing adult-use reform—the United Kingdom remains in a legal grey zone.

In this episode, Shadd breaks down the current state of cannabis policy in the UK, the growing public support for legalization, and the economic potential of a regulated cannabis market. Despite being one of the largest exporters of medical cannabis globally, access for British patients remains limited. The episode also dives into the concerns raised by health officials, the role of law enforcement, and how UK policymakers compare to their counterparts across Europe and North America.

Whether you’re a cannabis investor, policy analyst, or advocate for cannabis reform, this episode offers a balanced and timely look at one of the most controversial topics in the cannabis space.