💸 The Tape

In the Old Dominion, where history is etched in every cobblestone and political deals are as intricate as a colonial quilt, lawmakers are stitching together what could finally be a regulated marijuana market. On Tuesday, the House General Laws Committee gave a green light to a substitute version of Senate Bill 542, swapping its guts for the language of House Bill 642 — with a few extra tweaks for good measure. The 16-4 vote propels the measure to Appropriations, inching Virginia closer to legal adult-use sales after years of possession-only limbo.

It’s a procedural pirouette in a legislative dance that’s been spinning since 2021, when simple possession and home growing got the nod but retail remained off-limits. Former Gov. Glenn Youngkin (R) twice vetoed sales bills, leaving advocates fuming and entrepreneurs in limbo. Now, with Gov. Abigail Spanberger (D) signaling support, the momentum feels different — though not without its drama. Panel chair Del. Paul Krizek (D) summed up the vibe at the hearing: “They’re still not going to be exact, but we’re working towards that. We’re getting really close.”

The revised bill, now a near-mirror of Krizek’s House version, incorporates amendments that refine the framework without reinventing the wheel. Microbusiness licensees can now cultivate, process, or conduct retail sales at up to two locations instead of one, provided they’re within 10 miles of each other and under common ownership and control — a small-business booster shot for entrepreneurs aiming to scale modestly. Current medical cannabis operators are restricted to indoor cultivation, including secure greenhouses, with a total canopy cap of 70,000 square feet. They’re barred from holding any additional marijuana licenses beyond their medical permits with “dual-use privileges,” keeping the playing field somewhat level.

Perhaps the most operator-friendly tweak: the conversion fee for medical businesses to enter the adult-use market drops to $5 million, payable in three installments — $2 million in the first year, $2 million in the second, and $1 million in the third. It’s a far cry from the original Senate’s $15 million lump sum or the House’s $10 million, offering a gentler on-ramp for incumbents.

At its core, the legislation aims to create a safe, taxed, and equitable marketplace for a substance that’s already legal to possess in small amounts. Adults would be able to purchase up to 2.5 ounces of marijuana in a single transaction, or up to an equivalent amount of other cannabis products as determined by regulators. Delivery services would be allowed, bringing the convenience factor that modern consumers crave. Serving sizes would be capped at 10 milligrams THC, with no more than 100 mg THC per package — a nod to public health without strangling product variety.

Timing remains a point of contention. The House bill sets the start date for legal sales as November 1, 2026, while the Senate measure would allow them to begin on January 1, 2027. That extra couple of months could mean millions in delayed revenue, but it’s a bridge lawmakers seem willing to cross in conference.

Taxes are another hot potato. The Senate bill would set an excise tax on cannabis products of 12.875 percent, in addition to a 1.125 percent state sales tax and a mandatory 3 percent local tax. The House measure would apply an excise tax of 6 percent as well as a 5.3 percent retail sales and use tax, while allowing municipalities to set a local tax of up to 3.5 percent. It’s a classic fiscal tug-of-war: higher rates for more revenue versus lower ones to undercut the illicit market.

Oversight diverges too. Under the House bill, the Virginia Cannabis Control Authority would oversee licensing and regulation of the new industry, while the Senate legislation tasks that to a new combined Alcoholic Beverage and Cannabis Control Authority. Merging booze and buds under one roof might streamline bureaucracy, but it could also dilute focus — a debate ripe for committee haggling.

Revenue allocation shows both chambers prioritizing equity and education, though with different emphases. The House bill calls for revenue to be distributed to a new Cannabis Equity Reinvestment Fund (60 percent), early childhood education (10 percent), the Department of Behavioral & Developmental Health Services (25 percent) and public health initiatives (5 percent). The Senate proposal, meanwhile, would put 30 percent toward the equity reinvestment fund, 40 percent for early childhood education, 25 percent to the behavioral and developmental health services department and 5 percent to public health initiatives. Either way, the funds aim to repair harms from past prohibition, invest in kids, and bolster mental health — noble goals in a state still grappling with the war on drugs’ legacy.

Local control? Forget opt-outs — the bill bars municipalities from blocking cannabis businesses outright, though they can zone them like any other retail. Cannabis operations must ink labor peace agreements with workers, ensuring union-friendly environments. And a legislative commission would study expansions like on-site consumption licenses, microbusiness event permits for farmers markets or pop-ups, and even involving the Virginia Alcoholic Beverage Control Authority in enforcement.

This isn’t happening in a vacuum. Last week, on a key crossover deadline, lawmakers advanced companion measures for resentencing prior marijuana convictions and allowing terminal patients to access medical cannabis in hospitals. The resentencing bill creates automatic hearings for those incarcerated or supervised for pre-2021 felony pot offenses, a step toward justice reform. “Ryan’s Law” mandates hospitals to craft policies for registered patients’ use, though facilities could pause if federal enforcers like DOJ or CMS crack down.

The path forward involves more committee stops and likely a conference committee to iron out these wrinkles. Earlier Senate drama highlighted the pitfalls: amendments adding penalties for unlicensed buys, recriminalizing underage possession, and felony upgrades for cultivation or interstate transport were stripped after advocacy pushback. Groups argued they undercut the bill’s intent and voters’ will — a reminder that over-penalization could torpedo the whole effort.

Bipartisan glimmers shine through. Some Republicans have crossed the aisle, backing sales despite caucus resistance, perhaps seeing the economic upside in a market projected to generate hundreds of millions. Virginia’s possession law has already cut teen use, per recent data, countering prohibitionist fears.

As Krizek noted, the versions aren’t identical yet, but proximity breeds possibility. With Spanberger’s backing and a Democratic majority, 2026 could see Virginia join the ranks of full-legal states. For advocates, it’s about more than revenue — it’s equity, safety, and ending the gray-market limbo that’s left consumers vulnerable.

Yet challenges loom. Federal rescheduling hangs in the air, potentially easing banking woes but complicating state rules. And if history repeats, veto threats could resurface, though Spanberger’s stance suggests smoother sailing.

In the end, Virginia’s cannabis journey mirrors the nation’s: halting, contentious, but inexorably forward. From Jamestown’s hemp fields to modern dispensaries, the plant has deep roots here. Legal sales would honor that heritage while funding a brighter future — one regulated gram at a time.

Source: Marijuana Moment

📈 Dog Walkers

$OGI ( ▲ 1.43% ) Expands BIG Down Under

In a move that’s equal parts strategic expansion and subtle nod to global green trends, Organigram Global Inc. is planting its flag in Australia’s booming medical cannabis scene.

The Canadian powerhouse announced today the launch of its Edison and BOXHOT brands Down Under, introducing vapes and pastilles tailored for patients seeking discreet, precise dosing. With Australia’s market heating up — more approvals, diverse formats, and a shift beyond flower — Organigram sees prime real estate for its science-backed innovations. Flower remains king, but vapes and edibles are rising fast, driven by convenience and consistency.

“Australia represents an exciting international opportunity in medical cannabis, and we are entering the market at a pivotal moment with an informed strategy,” said Megan McCrae, Senior Vice President of Corporate Strategy & International Growth. She tied the launch to the pending acquisition of Germany’s Sanity Group, framing it as a one-two punch in Organigram’s worldwide ambitions.

The rollout includes 10 SKUs: Edison vapes with live terpenes from top Canadian strains, patient-focused pastilles, and BOXHOT’s botanical blends in oversized 1.2g cartridges. Already supplying B2B flower, Organigram is betting big on “ready-to-consume” formats, leveraging years of R&D to outpace competitors.

Borna Zlamalik, Senior VP of Innovation and International R&D, added: “As patient and clinician preferences continue to move toward reliable, convenient, non-flower options… Organigram is well-positioned to participate in this next phase of growth.”

Products will flow through Leafio, Montu Australia’s wholesale arm, reaching over 4,000 pharmacies. Organigram debuts at the United in Compassion Symposium in Brisbane February 26–28, where Zlamalik speaks on “From Potency to Predictability.”

For a company that’s mastered Canada’s tough terrain, Australia looks like fertile ground. As medical markets mature, Organigram’s blend of quality and quirk might just make it the export darling we didn’t know we needed.

$GLASF ( ▲ 10.97% ) Form Special Commitee

In the ever-shifting sands of cannabis reform, Glass House Brands Inc. (CBOE CA: GLAS.A.U / GLAS.WT.U) (OTCQX: GLASF / GHBWF) is planting its flag firmly in the future.

The vertically integrated powerhouse announced today the formation of a Special Committee to scout new products, business expansions beyond its California stronghold, and partnerships with traditional industry players. Chaired by veteran strategist Jay Nichols — fresh from steering Protective Insurance and Axis Reinsurance — the committee includes co-founders Kyle Kazan (CEO) and Graham Farrar (President), Jocelyn Rosenwald, and branding maestro Alison Payne, CMO of Heineken USA.

As the industry holds its breath for Attorney General Pam Bondi’s final rescheduling order, Kazan isn’t waiting idly. “As we await the final rescheduling order... we are actively preparing for the related new business opportunities we are confident will be forthcoming,” he said. The move to Schedule III could unlock international medical exports and a Medicare-reimbursable CBD market potentially worth $30 billion annually — a windfall Glass House aims to harvest with its unmatched scale and low-cost cultivation prowess.

“We’ve been growing cannabis for over 10 years... at a scale and price that is unmatched,” Kazan added, nodding to ongoing greenhouse expansions that will supercharge output. The committee’s mandate: vet prospects, from European medical distribution deals to cannabinoid-infused consumer goods, while forging ties with legacy giants for production, distribution, and branding muscle.

Nichols summed it up with boardroom gravitas: “We are at a crossroads of mainstream adoption for cannabinoid products, and Glass House is well-positioned for success.”

For a company already one of the fastest-growing in the U.S., this committee isn’t just oversight — it’s a launchpad. As rescheduling ripples outward, Glass House is betting its greenhouse empire will be the go-to supplier in a world where cannabis finally steps out of the shadows.

🗞️ The News

📺 YouTube

Is Washington Finally Moving On Cannabis Rescheduling? | TTB Powered by Flowhub

What we will cover:

✅ In the latest Trade To Black podcast presented by Flowhub, hosts Shadd Dales and Anthony Varrell break down one of the most pivotal weeks in cannabis industry news.

Rumors are intensifying that federal cannabis rescheduling could be finalized soon. Could marijuana officially move to Schedule III — and what would that mean for MSOs, capital markets, and institutional investment?

Meanwhile, Green Thumb Industries (OTCQX: BTBIF) secured an additional $50 million in senior debt financing, expanding its syndicated credit facility to $189 million. The five-year agreement, led by Valley National Bank and maturing in 2029, included no equity issuance — a signal that major operators are strengthening liquidity ahead of potential regulatory change.

With Curaleaf (TSX: CURA), Trulieve (OTCQX: TCNNF), and Cresco Labs (OTCQX: CRLBF) also active recently, is M&A acceleration pointing to something bigger?

The episode also covers breaking developments from the DOJ, which told the Supreme Court that the federal gun ban for marijuana users should remain in place — even if rescheduling is finalized.