💸 The Tape

Five years of waiting. Three vetoes. Countless legislative sessions. And now, finally, a deal.

Governor Abigail Spanberger and Virginia lawmakers stood together Tuesday to announce a compromise framework for legalizing recreational marijuana sales through budget legislation expected to pass this month. If enacted, legal sales would begin July 1, 2027 — making Virginia one of the last states to close the gap between possession legalization and a regulated retail market.

"We have agreed to a compromise proposal that will create a safe, legal and well-regulated cannabis marketplace here in Virginia," Spanberger said, flanked by the very lawmakers whose earlier legislation she vetoed. "This is what good governing and collaboration look like."

It's a remarkable scene — a governor who killed the original bill standing beside its sponsors to announce a deal built from the wreckage. But in Virginia cannabis politics, remarkable has become routine.

What the Deal Looks Like

The compromise splits the difference on virtually every point that divided Spanberger from the legislature.

Sales launch July 1, 2027 — the governor's preferred date, not the legislature's original January 1 target. Possession and purchase limits are set at 2 ounces, up from the current 1-ounce cap but below the legislature's 2.5-ounce proposal. The excise tax starts at 6% but rises to 8% after two years — a concession to Spanberger. A 5.3% retail sales tax plus local taxes of up to 3.5% bring the combined potential rate to approximately 14.8-17.3% depending on jurisdiction and timing.

The most contentious issue — criminal penalties — landed in the middle. Public cannabis consumption will carry a $250 civil fine, ten times the current $25 but critically still a civil violation, not the Class 4 criminal misdemeanor Spanberger originally demanded. Underage possession draws a $25 fine plus mandatory substance education — far gentler than the governor's proposed Class 1 misdemeanor with a $500 mandatory minimum and driver's license suspension.

Up to 350 retail stores will be licensed statewide — the legislature's number, not the governor's preferred 200. Local governments cannot opt out. Delivery services are permitted. Edible servings are capped at 10 mg THC with 100 mg per package. And a legislative commission will study adding on-site consumption and microbusiness event permits — language the governor had tried to delete.

Existing medical cannabis operators can convert to adult-use licenses for a $10 million fee. Cannabis businesses must establish labor peace agreements. And the Virginia Cannabis Control Authority will oversee the industry with a five-member board appointed by the governor.

Revenue flows to the Cannabis Equity Reinvestment Fund, early childhood education, behavioral health, and public health — though unlike the original bill, specific allocation percentages aren't defined in the compromise.

Sen. Lashrecse Aird called the deal one that "strikes the right balance." Del. Paul Krizek emphasized creating opportunity beyond those with existing capital and political connections.

The Operators Who've Been Waiting

The companies operating in Virginia haven't just been waiting for this moment — they've been spending aggressively to prepare for it. The state's medical cannabis market is controlled by five vertically integrated pharmaceutical processor licenses, and the corporate transactions over the past 18 months tell the story of an industry betting heavily on adult-use conversion.

Green Thumb Industries holds the Northern Virginia license — the state's most valuable territory by population density and purchasing power. GTI's RISE Dispensaries and national brand portfolio (RYTHM, Dogwalkers, incredibles) are ready for immediate adult-use deployment.

Jushi Holdings also operates in Northern Virginia, where it has invested in a $30 million facility expansion near Manassas. With six Beyond Hello dispensaries and strong branded products through Kind Tree and Legend, Jushi has been among the most aggressive in building Virginia-specific capacity. The company recently reported that five of its six Virginia stores rank among the top 15 in the state — positioning that translates directly into adult-use market capture.

Verano Holdings serves Southwest Virginia after acquiring The Cannabist Company's subsidiary holding the HSA V license in 2024, giving it access to the Hampton Roads population corridor.

The most dramatic capital markets transaction involved the HSA IV license covering Richmond and Central Virginia. Curaleaf initially pursued a $110 million acquisition of The Cannabist Company's Virginia operations, but was outbid by Millstreet Credit Fund, a Boston-based hedge fund that secured the assets for $130 million through an affiliate operating as Pharmco. The deal gave an institutional investor — not a traditional cannabis operator — control of one of Virginia's most strategically valuable licenses.

AYR Wellness holds the Western Virginia license, though its operations have transferred to Arboretum Bidco LLC through the company's ongoing CCAA restructuring — meaning the license is now effectively controlled by creditors operating under the Ayr Wellness trade name.

Collectively, these operators have invested hundreds of millions in Virginia cultivation, processing, and retail infrastructure — all built in anticipation of the conversion fee model that the compromise preserves at $10 million per license. That fee gives incumbents immediate access to the adult-use market while new entrants navigate the licensing and buildout process — a structural advantage that will define the competitive landscape for the first several years of legal sales.

The medical program currently serves over 100,000 registered patients across 23 dispensary locations. Industry projections for a full adult-use market range from $780 million in the first year to over $1 billion by year two.

The Bottom Line

Virginia's cannabis saga has been defined by frustration — a state that legalized possession in 2021 but couldn't manage to let anyone legally buy the product for five years. The compromise isn't perfect. The $250 public consumption fine has drawn criticism from NORML and advocates. The delayed timeline means another year of unregulated sales. And the governor's insistence on executive control over the regulatory board raises governance questions.

But the deal exists. Spanberger and the sponsors are standing together. The budget vehicle makes a veto nearly impossible. And for the first time since Virginia legalized possession, the finish line isn't just visible — it's scheduled.

July 1, 2027. Mark it down. Virginia is finally coming to market.

📈 Dog Walkers

$GLASF ( 0.0% ) Prepares To Uplist

Glass House Brands is following the blueprint — and Trulieve wrote the manual.

The California cannabis producer announced it has applied to list on the New York Stock Exchange, becoming the latest MSO to pursue a major U.S. exchange listing by executing a deconsolidation transaction that separates its medical cannabis business from its dual-use (adult-use) operations.

The structure mirrors what Trulieve executed weeks ago before becoming the first U.S. cannabis company to trade on the NYSE. Glass House's subsidiary, GHB Usub, LLC, now holds non-voting, non-participating units in Glass House Retail, LLC (GHR), which houses the company's former dual-use business. A third-party investor holds the voting units of GHR, ensuring the adult-use operations are no longer consolidated on Glass House's financial statements.

The non-voting units convert back into voting units only after the NYSE permits listing of companies that consolidate entities engaged in non-medical cannabis in the United States — the same reconsolidation trigger Trulieve built into its structure. It's a temporary separation designed to satisfy current exchange requirements while preserving the company's right to reunify when regulations allow.

Businesses requiring regulatory approval to transfer into GHR will move automatically once those approvals are obtained — no additional action required from the company.

For Glass House, the timing aligns with a period of aggressive positioning: the company has filed DEA registration applications, completed the Greenhouse 2 buildout, launched a $100 million ATM program, and is ramping toward one million pounds of annual biomass production. An NYSE listing would give the company access to institutional investors, improved liquidity, and broader analyst coverage at exactly the moment it's scaling production for potential interstate and international opportunities.

Trulieve opened the door. Glass House just walked through it. The question now is how many others are right behind.

$CRON ( ▼ 1.14% ) Expands Buy Back

Cronos Group is putting its $822 million cash pile to work — and the TSX just gave it another avenue to do it.

The company announced that the Toronto Stock Exchange has accepted its notice to conduct a normal course issuer bid, expanding the $50 million share repurchase program approved by the board in May to include purchases through TSX and Canadian alternative trading systems alongside the existing U.S. market buyback authority through Nasdaq.

Cronos can repurchase up to 18.7 million shares (approximately 5% of outstanding) with daily TSX purchases capped at roughly 54,000 shares. Celadon Financial Group serves as the company's repurchase agent, executing Canadian transactions through Virtu Canada Corp. TSX purchases may commence June 19.

The company also secured an exemption from the Ontario Securities Commission allowing U.S. marketplace repurchases to exceed normal Canadian limits — ensuring Cronos can deploy capital flexibly across both countries' exchanges.

For a company sitting on the largest cash position in cannabis and delivering 40% revenue growth, 122% EBITDA growth, and record results across Canada, Israel, and international markets, buying back shares at current prices reflects a straightforward conviction: the stock is cheap relative to what the business is producing.

With the pending CanAdelaar acquisition and European expansion ahead, Cronos is balancing growth investment with capital returns — and the cash balance gives it room to do both.

🗞️ The News

📺 Trade To Black

ATACH President Explains What Happens After Schedule III | Trade to Black

• Institutional Sentiment Shifting: ATACH President Michael Bronstein reports that institutional investors — including firms like BlackRock and Fidelity — are paying closer attention to cannabis than most realize, though key regulatory milestones must still be reached before they fully enter the space.

• June 29 ALJ Hearing: The conversation centers on the upcoming DEA Schedule III hearings and whether a favorable outcome is likely, with Bronstein sharing feedback from operators, investors, and regulators on what's at stake.

• Capital Markets Momentum: The discussion covers exchange uplistings, Schedule III implementation, and regulatory normalization — with the pace of reform creating conditions that are drawing capital markets participants back into cannabis after years on the sidelines.

• Hemp & FDA Clarity: Bronstein addresses the future of hemp-derived cannabinoids, FDA regulation, CBD supplements, and intoxicating hemp products — signaling that clearer federal rules may finally be approaching as both cannabis and hemp policy converge.