💸 The Tape

Chad Chronister Is Out For DEA Admin

The saga of President-elect Donald Trump’s DEA nomination took a sharp turn when Florida’s Hillsborough County Sheriff Chad Chronister withdrew from consideration just days after being named. Chronister, known for his progressive stance on marijuana policy, would have represented a significant pivot for the agency. His advocacy for cannabis decriminalization, citing it as a reflection of an “evolving society,” earned him applause from reform advocates but raised eyebrows among conservative lawmakers.

Chronister’s unexpected withdrawal came amid mounting scrutiny over his record on COVID-related public safety enforcement. He cited the “gravity” of the DEA role as the reason for stepping back, though political tensions surrounding his progressive policies likely played a role. His departure leaves a critical vacancy as the federal government navigates its most significant marijuana rescheduling process in decades.

Had he stayed, Chronister would have overseen efforts to reclassify cannabis from Schedule I to Schedule III under the Controlled Substances Act—a change that, while not legalizing marijuana, would narrow the gap between federal policy and the widespread state-level legalization efforts. His track record as a vocal supporter of decriminalization marked a stark contrast to the DEA’s historical resistance to reform, signaling a potential paradigm shift under his leadership.

Chronister’s progressive approach to cannabis enforcement was evident in his 2020 push for Hillsborough County to treat possession of up to 20 grams of marijuana as a civil offense instead of a misdemeanor. In testimony before the county board, he emphasized the importance of “fair and equitable enforcement” and argued that decriminalization would not only alleviate the burden on the criminal justice system but also provide an educational opportunity without creating lasting criminal records. Following the unanimous vote, Chronister celebrated the reform as a win for efficient law enforcement and community equity.

As stakeholders anxiously watch for Trump’s next move, Chronister’s withdrawal underscores the complexities of marijuana policy reform in the shifting political landscape. Whether his bold vision will inspire future nominees remains an open question. For now, the DEA’s path forward is as uncertain as ever.

📈 Dog Walkers

Glass House Launches ATM

Glass House Brands Inc. is doubling down on its aggressive expansion strategy, leveraging record-breaking operational performance as a springboard for growth. With a 128% year-over-year surge in cannabis production and cultivation costs hitting a record low of $103 per pound, the company is capitalizing on its strong financial footing to fund Phase III expansion plans. The at-the-market (ATM) distribution program, detailed in the recently filed prospectus supplement, aims to raise up to $25 million, ensuring strategic flexibility in execution. With upgrades such as blackout curtains, CO2 systems, and nearly 11,000 lights pre-installed in Greenhouse 2, the company anticipates a transformative boost in production consistency and quality. Glass House’s disciplined timing on financing underscores a long-term focus on market dominance.

Rubicon Organics Secures $10M Facility

Rubicon Organics has just struck a financial power play, securing C$10 million in five-year credit facilities at a competitive 6.75% interest rate. The move allows the company to retire its looming US$8 million Green Island Debenture well ahead of its December 31 deadline, eliminating a ticking time bomb and replacing it with friendlier terms. By leveraging first-ranking security interests, Rubicon demonstrates fiscal discipline while keeping its balance sheet intact for future growth. CFO Janis Risbin hailed the deal as a "flexible liquidity boost," while Community Savings Credit Union’s CEO Mike Schilling cheered their cannabis-friendly partnership. With a tidy 10-year amortization cushion, Rubicon is well-positioned to focus on its premium organic cannabis ambitions without breaking a financial sweat.

CEAD Makes Acquisition

CEA Industries is gearing up for a bold move, announcing a non-binding LOI to acquire a specialty retailer and manufacturer with 30+ locations and a treasure chest of trademarks. This isn’t just any acquisition—Chairman and CEO Tony McDonald calls it a "profitable, high-demand industry opportunity." Translation? This Target has double-digit growth, cash flow in the black, and enough IP to make a lawyer blush. CEA plans to flex its balance sheet muscle, expanding the Target's footprint and white-label manufacturing game. But hold the confetti—there’s a maze of due diligence, landlord consents, and financing hurdles to clear before a Q1 2025 close. Still, if they pull it off, this could be a growth rocket for shareholders. As McDonald teases, “Stay tuned.”

🗞️ The News

Rubicon Organics Announces C$10,000,000 Secured Credit Facilities

CEA Industries Inc. Negotiating to Acquire a Leading Specialty Retailer

Glass House Brands Announces the Filing of Prospectus Supplement for Previously Announced At-The-Market Distribution Program

NAACP And Allies Push New York Governor To Stop Letting Marijuana Officials Favor ‘Big Corporations’ Over Small Businesses And Equity

📺 YouTube

ALJ Hearing: Cannabis Rescheduling Updates and Key Takeaways | Trade to Black

What we covered:

✅ On our latest Trade To Black podcast, Host Shadd Dales & Anthony Varrell will break down the key takeaways from today’s ALJ hearing on the rescheduling of cannabis.

The Drug Enforcement Administration (DEA) has officially begun its first hearing on the Biden administration’s proposal to move cannabis from Schedule I to Schedule III of the Controlled Substances Act. While today’s meeting is largely procedural, it sets the stage for more substantive hearings next year.

DEA clarified that this session focuses on legal and logistical issues—no witness testimony was taken. The ultimate decision could bring significant regulatory changes. Moving cannabis to Schedule III would reduce restrictions but still maintain criminal prohibitions on manufacture, distribution, and possession, along with federal oversight under the CSA and the Federal Food, Drug, and Cosmetic Act.

So, what’s the broader impact if cannabis is rescheduled? And will this decision be endorsed by the Trump administration?