🧪Cannabis Product Safety / Lab Testing in Spotlight Across Several Markets
TILT to Divest 2 dispensaries in MA. Earnings: Aurora Cannabis +37% Revenue YoY, Canopy Growth -5% YoY. STIIIZY Expands to NY. Safe Harbor CEO retires, AYR Wellness Board Member resigns.
In case you’ve missed the announcement, Benzinga has announced that the Benzinga Cannabis Capital Conference will be in Chicago from June 8th–10th, with the next Cannabis Market Spotlight (more regionally focused) happening next month, March 4th, in Somerset, NJ.
🌿 Industry
Claims of marijuana testing lab fraud hit New York. Familiar allegations of testing lab fraud—including vape oil cartridges with “certified” total cannabinoids of more than 100%—are now roiling the adult-use market in New York. — MJBizDaily
Accusations that labs are inflating THC potency to satisfy clients—and potentially manipulating data in tests meant to ensure consumer safety—echo similar complaints made across the country
Critics say the lab-fraud problem threatens to undermine consumer confidence just as recreational cannabis sales in New York eclipsed $1 billion for the first time after a rocky start. Making the problem worse, according to two lab operators is that regulators aren’t taking the problem seriously
PA Governor Shapiro Unveils 2025-26 Budget Proposal to include Adult-Use. Executives from neighboring states with cannabis stores on the border have reported that up to 60% of their customers are from Pennsylvania. — PA.Gov
This budget proposes the legalization of adult use cannabis effective July 1, 2025, with sales within Pennsylvania beginning January 1, 2026, and invests $10M in restorative justice initiatives from adult use cannabis proceeds
The budget also proposes a $25M investment to help new small and small diverse businesses enter the new marketplace. This industry will yield $250M annually in additional revenue for the Commonwealth, and will generate $1.3B over the first five years as the market gets up and running
This is the third straight year Shapiro has called on state legislators to address legalizing adult-use cannabis. Industry advocates as well as some state lawmakers believe that the fiscal outlook might be what finally convinces reluctant lawmakers
A Republican Pennsylvania senator who supports legalization says the governor’s latest cannabis proposal “undermines” the goals of the reform and has “no real path forward”
New York Launches Cannabis Banking Directory.
The program launched by OCM’s Social and Economic Equity (SEE) Team, is designed to increase access to financial services by reducing barriers, to help create more financial stability for cannabis operators
Even where weed is legal, product safety isn't guaranteed. Justin Singer, CEO of Caliper Holdings (Ripple and Ript) has become increasingly concerned about Colorado's lack of enforcement of the industry and what that means for the safety of the marijuana supply. — NPR
Forty states allow the sale of some form of cannabis for medical or recreational use. But cannabis remains illegal under federal law. That means agencies like the FDA don't regulate the growing or testing of the product
A breaking point came when Singer released a much cheaper product to the market and increased sales by 500%, a spike he expected would certainly trigger an inspection from the state Marijuana Enforcement Division
"They never showed up," Singer said. So he had people buy 15 different marijuana products from dispensary shelves and tested them at a lab. The testing data, which he shared with NPR, shows four products would have failed state limits for yeasts and mold, one by more than six times the state limit
Virginia: Lawmakers Approve Bills Regulating Adult-Use Cannabis Sales, But Governor’s Veto Looms. For the second year in a row, House and Senate lawmakers have approved legislation (HB 2485 | SB 970) regulating the adult-use marijuana market. — NORML
However, the bills most likely will be vetoed by Republican Gov. Glenn Youngkin, who acknowledged in his State of the Commonwealth address that he wouldn’t seriously consider any legislative efforts to establish a retail marijuana market
Potentially contaminated cannabis products sold across Massachusetts. The Massachusetts Cannabis Control Commission (CCC) is issuing a health and safety advisory due to the identification of contaminated and potentially contaminated Marijuana flower and/or Marijuana pre-rolls. — CCC
The affected products previously passed required compliance testing between March 2024 and June 2024; however, following additional compliance testing, samples of the affected products were found to have the presence of yeast and mold above the acceptable testing limits established for Total Yeast and Mold and coliforms
Massachusetts marijuana testing lab sues competitors over ‘fraudulent’ practices. The complaint, filed Jan. 30 by MCR Labs in Suffolk County Superior Court, follows years of allegations in the industry that labs are deliberately falsifying data to please clients and that state cannabis regulators have been unable to rectify the problem. — MJBiz
“This race-to-the-bottom willingness to manipulate testing … results in unknowing consumers overpaying for lower-potency cannabis riddled with dangerous contaminants,” the lawsuit claims in part
MCR Labs once held nearly 50% of the market but steadily lost that share to dishonest competitors, according to the lawsuit. It names Analytics Labs, Assured Testing Laboratories, CDX Analytics, Green Analytics Massachusetts (formerly Steep Hill Massachusetts), Green Valley Analytics, Kaycha MA, Massbiolytics Corp. and SafeTiva Labs
Minnesota to start accepting cannabis business license applications. The Minnesota OCM will accept applications for cannabis business licenses beginning February 18 and ending March 14. — MN.Gov
During this license cycle, OCM will accept applications both from verified social equity applicants and from any applicant seeking to participate in general licensing in the following license types: microbusiness, mezzobusiness, cultivator, manufacturer, retailer, wholesaler, transporter, testing facility, delivery service, and medical cannabis combination business
Applications for cannabis event organizer licenses will be accepted later this summer; applications for lower-potency hemp edible manufacturer licenses and lower-potency hemp edible retailer licenses will be accepted in the fall
Demand for cannabis in Oregon sours as supply soars. Nearly 12.3 million pounds of cannabis was harvested in 2024, the largest ever but demand remains flat. The total number of sales ($960 million) is roughly the same as last year. Oregon Liquor and Cannabis Commission (OLCC) estimates only 57% of the supply met demand.
Florida Supreme Court Will Reject 2026 Cannabis Legalization Proposal. Florida Gov. Ron DeSantis indicated that it’s unlikely another adult-use cannabis legalization measure will land on the 2026 ballot in its current form. — CBT
The governor said Smart & Safe Florida’s new initiative filed last month is written in a fashion that won’t survive judicial review for constitutional ballot measures
California DCC oversaw more than 480 embargoes in 2024. The DCC’s product investigations team issued 63 recall notices that included 259 products and nearly 25,000 individual units. — MJBizDaily
At any given time, more than 30,000 cannabis products and 100 million units are in the supply chain in California
💵 Deals
TILT Holdings Signs Definitive Agreement to Divest 2 Retail Locations in Massachusetts. Under the terms of the Transaction, TILT will transition ownership of its Taunton dispensary to In Good Health, a private single-state cannabis operator, and shut down its Brockton dispensary for $2M in cash considerations. The Company still has one location in Cambridge that is part of plant-touching assets under review.
Scotts Miracle-Gro to spin off Cannabis arm Hawthorne into separate business. That’s an about-face for Scotts CEO Jim Hagedorn, who has said he’d like to retain the division as part of the parent company despite the volatility of the cannabis sector, according to Green Market Report. But with Hawthorne’s EBITDA expected to be ~$20M this year, SMG determined that its cannabis arm would fare better on its own.
📄 Company Updates / Earnings
Ricky Williams and Calvin Johnson mock Roger Goodell in Jeeter/National Lampoon Super Bowl-adjacent cannabis short. The overall campaign here goes beyond just this short. This is “the first of many content pieces between Jeeter and National Lampoon” (with the latter brand well known for their decades of comedy in films, TV shows, and other media), and this is alongside Jeeter (“the No. 1 pre-roll brand in the United States”) launching “Big Game Legacy Packs” in dispensaries in the four states their products are currently sold in (California, Michigan, Arizona, and Massachusetts).
Aurora Cannabis Q3 FY2025 Results. Total Net Revenue of $88.2M, up 37% YoY, Including Record Net Revenue of $68.1M in Global Medical Cannabis, up 51% YoY. Generated Record Net Income of $31.2M, up 282% YoY, and Record Adjusted EBITDA of $23.1M, up 316% YoY. Achieved Positive FCF, Generating $27.4M. $180M of Cash and Debt-Free. The company’s strong top-line performance and record adjusted EBITDA were mostly fueled by contributions from its global medical cannabis business. International net revenue grew 112% and accounted for 60% of global medical cannabis net revenue. Shares (ACB) climbed as much as 53% on Wednesday.
Canopy Growth Q3 FY 2025 Results. Net revenue decreased 5% compared to Q3 FY2024; Adjusted EBITDA loss of $3M; Free cash flow was an outflow of $28M, representing a 17% improvement compared to Q3 FY2024, primarily driven by a reduction in cash interest expenses.
C21 Investments Q3 Results. Revenue of $7.9M, up 5.3% from Q2; Gross Margin of 46.0%,up 250 basis points sequentially; Adjusted EBITDA of $1.6M.
Ispire Technology FY Q2 2025 Results. Revenue of $41.8M, compared to $41.7M from Q2 2024. Net loss of ($8.0M), compared to net loss of ($4.0M) in Q2 2024.
Nabis Partners with Dutchie on New Tech Integration Offering, While Embarc Dispensaries Taps Nabis’ New Centralized Distribution Service. The first retail-facing partnership Nabis is launching is with Dutchie, on a tech-integration collaboration, aimed to empower retailers with technology that aids their purchasing, inventory management and data-driven decision-making. By incorporating Dutchie’s POS system with Nabis’ wholesale Marketplace platform, the partnership enables retailers across the market with an industry first: integrated tech tools that inform product management based on real-time inventory insights and demand forecasts. With features like automated order suggestions, custom pricing insights and market analysis tools, the result is a smarter, smoother supply chain for retailers.
Safe Harbor Financial Temporary Pause in Principal Payments and Ongoing Discussions to Modify Promissory Note with PCCU. Safe Harbor has entered into a Letter Agreement with Partner Colorado Credit Union (PCCU) related to its Senior Secured Promissory Note, whereby PCCU has agreed to temporarily pause receipt of principal payments due in February and March 2025, while the parties engage in discussions regarding a potential modification of the Note. The Company is working towards finalizing a modification within the two-month period, although there is no assurance that an agreement will be reached.
Cansortium name change to "FLUENT Corp." effective February 5, 2025. Concurrent with the name change, the Company's common shares will trade on the CSE under the new symbol "FNT" and "CNTMF" on the OTCQB.
Abstrax Brings Clarity to Misunderstood Cannabis Compounds in First New White Paper of 2025. Abstrax’s definitive white paper provides a deep dive into both flavorants and flavonoids, offering insight into how each compound contributes to the cannabis plant’s chemical makeup. This clarity is crucial for consumers seeking specific cannabis experiences and for breeders and manufacturers working to adequately meet market demands.
Metrc Wins New Track-And-Trace Contract With Illinois. This is the fourth state in which Metrc is replacing the incumbent track-and-trace vendor.
🏬 Retail / Labs
Inside Charlie Fox, New York’s Chicest Cannabis Dispensary. With sumptuous interiors by Home Studios, the premium cannabis brand’s three-floor flagship in the heart of Times Square strikes an unmistakably elevated tone with clever design touches that nod to old-world apothecaries. The 6,000-square-foot emporium—the largest cannabis retailer in the Northeast—is a place for both novices and discerning connoisseurs to hang out, browse the latest offerings, and chat about which product best suits their lifestyle.
The Flowery Becomes Largest Cannabis Retailer in New York with the Opening of Fifth Location on the Upper West Side. Following the success of its locations in Williamsburg, Soho, Forest Hills, and Staten Island, the Upper West Side store continues The Flowery’s mission to support social equity store owners while offering exceptional customer experiences and fostering premium cannabis culture.
Shangri-La Dispensaries Dispensary Expansion. Shangri-La opened six dispensaries in 2024 in Ohio, Illinois, and Connecticut, along with its existing locations in Missouri and Ohio. The Company plans to open at least eight new dispensaries in 2025, including four planned in Ohio’s Butler, Franklin, and Hamilton counties, two more in Connecticut, and two in Sussex County, Delaware.
Off the Charts opens 32nd CA dispensary in Antioch, CA. The first and only dispensary allowed in Antioch’s historic, downtown Rivertown celebrated its Grand Opening on Saturday, Feb. 1st.
Trulieve opens 230th Dispensary in Palm Coast, FL.
Green Health Laboratories to open Lab in Alabama. The company plans to build what will be “one of the exclusive testing facilities in the State of Alabama for the Alabama Medical Cannabis Commission.” The facility will create up to 50 high-paying jobs over the next three years and represents a $3.4 million investment.
🌱 Product
STIIIZY Expands to New York. New York marks the seventh state that STIIIZY products are available for purchase – in addition to California, Nevada, Illinois, Michigan, Arizona and most recently, Missouri. STIIIZY has also created an exclusive strain, New York Diesel, which is only available in select retail locations across New York. STIIIZY's signature products will now be available in New York City, including its STIIIZY Batteries, STIIIZY Pods, all-in-one vapes, and 40's infused multi-pack joints.
Snoop Dogg (SWED.com) introduces blunt wraps at CHAMPS. “I’ve been rolling blunts for decades, so I know what it takes to make them perfect,” said Snoop Dogg. “I created these wraps to be everything I want in my personal everyday go-to—they burn slow, taste amazing, and make it easy for everyone to roll like a pro. I can’t wait to debut them at CHAMPS and have you show me how you roll.” In addition, Snoop will debut new rolling papers, hemp products, glass pipes, nicotine vapes and more.
Willow Industries x Abstrax Unveil Cannabis Terpene Infusion System, HALO. Driven by their mission to standardize quality and empower cultivators to provide clean, safe products, Willow Industries has developed HALO, a closed-loop system that revolutionizes the way cannabis flower is infused with terpenes. The machine employs a precise and controlled infusion process that aerosolizes liquid terpenes to optimize distribution, minimize waste, and maximize efficiency. Featuring an enclosed drum loading system, minimal labor requirements, advanced tracking software and customizable settings, the HALO is a seamless solution for cultivators aiming to amplify their product offerings.
🧔 People
Grown Rogue Appoints Josh Rosen as Chief Strategy Officer. Prior to joining the Company, Josh was Executive Chairman and CEO of 4Front Ventures and CEO of Vireo Growth Inc. Before joining 4Front in cannabis, Josh worked as a private equity portfolio manager, with the family office of John Sperling, who was a prominent drug reform philanthropist, and before that as an investment research analyst, primarily with Credit Suisse. Josh continues to serve as a Managing Partner of Bengal Capital.
AYR Wellness Appoints COO George Denardo as President. In his new role, he will oversee all company-wide operations, including with all retail, wholesale, purchasing, marketing, cultivation, and manufacturing. Jared Cohen Resigns from Board.
Agrify Appoint Peter Shapiro and Sanjay Tolia to Board. Peter Shapiro is an independent music entrepreneur with an eclectic career producing numerous acclaimed and groundbreaking projects. Throughout his career, Shapiro has owned and/or operated numerous celebrated music venues including Brooklyn Bowl, The Capitol Theatre, Wetlands Preserve and most recently, the Bearsville Theater, hosting some of the biggest names in music and producing countless celebrated shows and festivals. Sanjay Tolia is the co-founder of structured note and derivatives provider Marine Layer Advisors and a co-founder and managing director of Bengal Capital.
Safe Harbor CEO Sundie Seefried to retire. The Company signed a three-year executive employment agreement with Terry Mendez to serve as co-CEO and will be appointed CEO upon Seefried’s retirement. Post-transition, Seefried will remain on the Board of Directors.
🎙️ Interviews
Ayr Wellness President George DeNardo Talks 2025 | TDR
Can Cannabis Stocks Recover? Insights from TPB's Scott Grossman | Higher Exchanges
Stop Ignoring Germany’s Massive Opportunity – ft. Jamie Pearson | The Dime
Bluegrass Bud: Kentucky Medical Cannabis Arrives | High Rise