💸 The Tape

Texas is taking a major step toward modernizing its tightly restricted medical cannabis system, with officials conditionally approving nine new medical marijuana business licenses under an expansion of the Texas Compassionate Use Program (TCUP). The Department of Public Safety (DPS) announced the Phase I selections on Monday, though it emphasized the approvals are not yet licenses—each applicant must clear an additional round of due diligence before being allowed to cultivate, manufacture, or sell cannabis products.

Under the law signed by Gov. Greg Abbott (R) in June, DPS must ultimately issue 12 new licenses, with the final three expected by April 2026. Currently, Texas has only three operational dispensaries, meaning the expansion represents the program’s most significant growth since its inception.

Among the nine conditional licensees are two major multi-state operators (MSOs)—Trulieve and Verano—marking a notable shift in a state that has historically limited corporate cannabis influence. Village Farms International, another MSO, did not make the first cut but said its proposal will be reconsidered in Phase II, reaffirming its commitment to Texas and downplaying any financial impact.

The new law also expands qualifying medical conditions to include chronic pain, traumatic brain injury, Crohn’s disease, other IBD diagnoses, and allows medical cannabis use for palliative and hospice care patients.

For Texas, the long-slow trickle of medical cannabis reform finally looks more like a deliberate—if still cautious—march forward.

📈 Dog Walkers

$CBSTF ( ▲ 1.22% ) Fully Divests Virginia Assets

The Cannabist Company Holdings Inc. (Cboe CA: CBST, OTCQB: CBSTF) is making a major strategic move, announcing a deal to sell its entire Virginia cannabis operations to a subsidiary of Curaleaf Holdings Inc. for $110 million, pending adjustments. The assets on the block include five active dispensaries, one location in development, and roughly 82,000 square feet of cultivation and production space in the Richmond region—one of the most valuable footprints in the state’s medical market.

The sale comes as the company’s Special Committee continues its review of “strategic alternatives,” a corporate phrase that usually means “everything is on the table.” With industry headwinds, lingering 280E tax pressure, and regulatory uncertainty still clouding the U.S. sector, Cannabist is exploring asset sales, potential mergers, and other restructuring measures.

Under the deal’s structure, Curaleaf will pay $80 million in cash at closing, $20 million in deferred cash, and issue a $10 million promissory note at 6% interest, all governed by a detailed Equity Purchase Agreement (EPA). The agreement features a 15-day go-shop period, a $3.3 million break fee, and requires Noteholder Consent from holders of the company’s 2028 secured and convertible notes.

The transaction is expected to close in early 2026, with Cannabist planning to use proceeds to redeem portions of its outstanding debt. Advisors include Moelis & Company, Stikeman Elliott LLP, Weil Gotshal, and Foley Hoag LLP.

For Curaleaf, the acquisition further solidifies its position as a dominant East Coast operator. For Cannabist, it marks the next step in a much-needed reset.

$VFF ( ▼ 0.28% ) Remains Committed To Texas

Village Farms International, Inc. (NASDAQ: VFF) is doubling down on its Texas ambitions—even after learning it did not receive a Phase I conditional medical cannabis license from the Texas Department of Public Safety (DPS) on December 1. The company said it has not yet seen its application scoring but intends to review the DPS process with advisors once details are released. Village Farms’ application will automatically roll into Phase II, scheduled for April 2026.

CEO Michael A. DeGiglio struck an unfazed tone, emphasizing the Phase I outcome has “zero impact” on the company’s financial performance, outlook, or strategy. He added that Village Farms doesn’t need “first mover advantage” to succeed and will continue exploring pathways to activate its Texas assets for future cannabinoid production. The company also reiterated its commitment to policy advocacy, pushing for “commonsense reform” that expands safe, affordable patient access.

Village Farms’ Texas footprint is no small asset: 2.2 million square feet of greenhouse infrastructure in West Texas—the same amount the company expects to have under cannabis cultivation in Delta, British Columbia by late 2026. It also owns 950 acres of farmland in Marfa, a site long viewed by agronomists as one of the best controlled-environment agriculture climates in the U.S.

For now, Village Farms is playing the long game in Texas—waiting for April, watching DPS, and keeping its greenhouses warm.

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What Tilray’s Latest Announcement Means For Investors | TDR Cannabis in 5

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This episode of TDR Cannabis in Five features Shadd Dales breaking down the Tilray (NASDAQ: TLRY) news that had investors talking over Thanksgiving weekend. This description reflects the episode in third-person and keeps the tone neutral and factual.

The video covers Tilray’s announcement of a 1-for-10 reverse stock split, released late Wednesday heading into the long weekend. By Friday morning, the stock was down nearly 20%. We review why reverse splits are usually seen as a defensive move and how this one appears more than just Nasdaq’s $1 share-price requirement, it’s about attracting institutional investors long term.

Shadd also discusses the company’s positioning, CEO Irwin Simon’s comments about “intrinsic value,” and why the market hasn’t responded positively. With shares down more than 45% year-to-date, the episode lays out the difference between messaging and market sentiment.