💸 The Tape

Former Florida Congressman Matt Gaetz is back in the spotlight, this time swapping fiery House hearings for hazy hopes of cannabis reform. In a recent op-ed for the Tampa Bay Times, Gaetz praised President Donald Trump’s “leadership” on marijuana policy and confidently declared that “meaningful change” is on the horizon.

The change in question? Rescheduling marijuana from Schedule I (where it’s kept company with heroin and LSD) to Schedule III, a category typically reserved for drugs with medical value and less potential for abuse. “It won’t solve every problem overnight,” Gaetz admits, “but it is a necessary step in the right direction.” A baby step, perhaps—but one taken in high heels on federal bureaucratic marble.

Gaetz, Trump’s one-time pick for attorney general (a nomination that fizzled faster than a dime bag in a frat house), used the column to tout his long-standing support for marijuana reform. He even claimed to have introduced a legalization bill in the Florida legislature—though records show he only backed a limited medical marijuana bill. Close enough for government work?

Conspicuously missing from the op-ed was any mention of President Biden, who actually kicked off the rescheduling review process during his first term. While Trump did post about it on social media during the 2024 campaign, he hasn’t publicly uttered the word “cannabis” since taking office. Still, Gaetz credits him with spearheading the effort, framing it as another bold act of Trumpian deregulation in service of “patients, small businesses, and especially our veterans.”

Industry watchers remain cautiously optimistic—but also puzzled. Trump’s new attorney general, Pam Bondi, once opposed medical marijuana legalization. Meanwhile, Trump’s DEA nominee, Terrance Cole, has linked cannabis use to increased suicide risk. Hardly the dream team for reform.

But Gaetz and others believe Trump can still be swayed—particularly if rescheduling is sold as a pro-veteran, pro-business move. After all, if there’s one thing Trump loves more than red tape-cutting, it’s a good polling number.

Whether the president turns his tweets into policy—or simply ghosts the issue like a bad Tinder date—remains to be seen. For now, cannabis advocates are holding their breath, and maybe lighting up... legally, of course.

📈 Dog Walkers.

Receivership Ahoy

What’s Going On Here: Gold Flora, a major California cannabis player with a $100M revenue buzz, just filed for voluntary receivership in a move that’s less about rolling joints and more about rolling with legal punches. The company's acquisition of The Parent Company came with some baggage—namely lawsuits and debt that grew like weeds. Now with $11.5 million in defaulted notes and creditors circling, Gold Flora is tapping out to court protection. A cannabis-savvy receiver is expected to take over, aiming for an orderly sale rather than a financial yard sale. Meanwhile, investors should brace for a trading suspension and likely delisting. Green may still be the color of money, but for Gold Flora, it's also the color of caution.

Why Should You Care: Add this turb to the trash heap. We called this out months back when the balance sheet started to look upside down.

RCMP Makes Major Bust

Whats Going On Here: The RCMP just busted a major illegal cannabis operation in Ontario that was less about wellness and more about worldwide weed distribution. After a two-year investigation, Mounties uprooted around 17,000 illicit plants worth over $16 million, charging six individuals tied to a cross-border cannabis empire with ambitions as high as their grow ops. Workers lived on-site without legal status, and the group allegedly laundered millions through the Canadian banking system using a clever identity fraud scheme involving bogus Health Canada authorizations. Exports reached the U.S. and Hong Kong, with Europe on the map—until the cops made sure this green empire went up in smoke.

Why Should You Care: Canada has been doing a much better job that the U.S. when it comes to curbing the illicit market.

🗞️ The News

📺 YouTube

Texas Hemp: Cracking Down On a Big Problem | Trade to Black

What we will cover:

✅ Coming out this morning at 11 AM Eastern time on our latest Trade to Black podcast, hosts Shadd Dales and Anthony Varrell dive into the following:

1. A discussion with Zack George, CEO of SNDL (NASDAQ: SNDL) about the company’s latest earnings report, including standout figures like $257.7M in Q4 revenue and $920.4M for the full year.

2. SNDL’s recent filing, revealing its ownership of 5.4% of High Tide’s (NASDAQ: HITI) outstanding shares. Shadd and Anthony will explore the strategic reasons behind this acquisition and its implications, including the possibility of a takeover.

3. An in-depth conversation with Marvin Washington, advisor to Leafwell🍃 and Super Bowl champion, about the role of cannabis in professional sports leagues.

4. Why Marvin believes Major League Baseball and the NBA are leading the charge in cannabis integration compared to the NFL.

5. Marvin’s insights into his ties with Weldon Angelos, and the potential for criminal justice reform within the cannabis industry.