🧾 PA Gov. Josh Shapiro’s Budget Proposal Calls for Cannabis Legalization (again)
Gelato Cannabis acquires its CA Operations. Vireo Enters into Non-Binding MOU to Acquire Hawthorne. Trulieve Closes Additional $60M Private Placement of 10.5% Notes. Jane Gold gives $1M Back.
I’m looking forward to attending IgniteIt in Jersey City, NJ next week (Tuesday, 2/10). If you still need a ticket, you can use this link for 20% off tickets (CODE: HIGHLYOBJECTIVE20). Also, I’ve gotten some requests to organize a small gathering around the conference. I’ll do so if there is interest, so please let me know.
I’ll also be going to Flower Expo Local: NYC (Thursday, 2/12) next week and wanted to put that on your radar if you’ll already be in NJ/NYC for IgniteIt.
🌿 Industry
Pennsylvania Gov. Josh Shapiro’s 4th budget proposal calls for cannabis legalization. The governor’s proposal would see adult-use cannabis legalized as soon as July 1, 2026, and regulated sales begin on Jan. 1, 2027. — CBS News
The Governor is again calling on lawmakers to move forward with cannabis legalization—and he indicated that a proposed “softening” of federal cannabis laws through rescheduling could bolster the push for reform
Last summer, a bipartisan bill was introduced in the House of Representatives that would establish a “stable, well-regulated cannabis market that prioritizes public safety and public health, protects children from exposure, promotes social justice and fosters economic opportunity”
There’s been no movement on the bill since July 14, 2025, when it was moved to committee
Vape Sales Dethrone Cannabis Flower for 1st Time in California. Cannabis flower is no longer king in the Golden State, where vape products are now the top-selling category in the licensed marketplace. — CBT
Vapes took over as California’s top-selling product category in July 2025, with $117.8M in sales compared to $113.2M for flower, and continued to widen that gap in the remaining months of the year, according to Metrc
According to Headset, vape sales gaining a larger market share in recent years is largely attributed to the coming of age of Gen Z cannabis consumers, who have long favored vapor pens over flower
Oklahoma governor wants to recriminalize $600M medical cannabis industry. Oklahoma Gov. Kevin Stitt wants to eliminate legal medical cannabis. — MJBizDaily
Termed out next year, Stitt plans to ask the state legislature to send to the voters a ballot initiative on medical marijuana that would “shut it down”
Oklahoma medical cannabis market has been in a steady decline as sales peaked in 2020 at $831M
Cannabis Sales Slipped in January. Cannabis sales decreased 3.1% sequentially in January. — New Cannabis Ventures
Missouri sales of $1.52B in 2025, up 3% from $1.46B in 2024
💵 Deals
Gelato Cannabis acquires its California Cannabis Operations. This brings California under a unified ownership and leadership structure that also includes Michigan and Arizona.
Vireo Growth Enters into Non-Binding Memorandum of Understanding to Acquire The Hawthorne Gardening Company from ScottsMiracle-Gro. Hawthorne is an independent operating subsidiary of ScottsMiracle-Gro and leading provider of nutrients, lighting and other materials used for indoor and hydroponic gardening in North America. Vireo intends to name Chris Hagedorn, Executive Vice President of ScottsMiracle-Gro and Executive Lead of the Hawthorne business, to its Board of Directors upon completion of the transition.
Trulieve Closes $60M Private Placement of 10.5% Senior Secured Notes. The Company has closed a second tranche of its previously announced private placement of 10.5% Senior Secured Notes due 2030 “Notes.” Together with the first offering of Notes, which closed on December 17, 2025, Trulieve has issued Notes in the aggregate principal amount of $200M. The Notes were issued at a price of $1,000 plus accrued but unpaid interest from December 17, 2025 to January 29, 2026 in the amount of $12.37 per $1,000 principal of Notes, and have the same terms as those issued on December 17, 2025.
📄 Company Updates / Earnings
Aurora Cannabis FY Q3 2026 Results. Total net revenue was $94.2M vs. $88.2M in the prior year period. The 7% increase from the prior year period was mainly due to 12% growth in global medical cannabis business and 27% growth in plant propagation business, slightly offset by lower quarterly net revenue in the consumer cannabis business. Consolidated adjusted gross margin before fair value adjustments was 62% in Q3 2026 and 61% in the prior year period. Adjusted EBITDA was $18.5M for the three months ended December 31, 2025 compared to $19.4M for the prior year period. Maintains Strong Balance Sheet with $154.4M of Cash and Short-Term Investments, and a Debt-Free Cannabis Business.
The Cannabist Co. Enters Into Forbearance Agreement With Senior Secured Noteholders. The company has entered into a forbearance agreement with an ad hoc group of noteholders of the Company’s 9.25% Senior Secured Notes due December 31, 2028 and the 9.00% Senior Secured Convertible Notes due December 31, 2028. The Forbearing Noteholders collectively hold more than 75% of the aggregate principal amount of Notes outstanding. On December 31, 2025, the Company elected not to make the interest payments due on the Notes under the amended and restated indenture, as supplemented, governing the Notes to enhance its short-term financial flexibility and preserve liquidity as it continues to evaluate strategic alternatives following the recent announcement of the sale of its Virginia assets to an affiliate of Millstreet Credit Fund LP. The failure to make the December 31 Interest Payments on the due date did not constitute an event of default under the Indenture. However, the non-payment of the December 31 Interest Payments during the 30-day grace period under the Indenture constitutes an event of default.
Green Check Reports Strong 2025 Growth, Averaging $1.7B in Monthly Verified Deposits. Average monthly verified deposits rose 54% year over year, while Green Check’s cannabis-related business ecosystem grew to 17,500 members.
Boveda Introduces Vivi Cannabis. Boveda, the leader and category pioneer in 2-way humidity control, announced Vivi as its new humidity control brand for cannabis.
🏬 Retail
Story Cannabis opens Dispensary in Midtown Phoenix, AZ. The dispensary serves both adult-use and Arizona Department of Health Services (AZDHS) qualified medical patients. House brands include FadeCo., Just Flower, DialedIn and more.
FLUENT Cannabis Opens New Orlando Sand Lake Dispensary. The dispensary is FLUENT’s second-largest location, spanning more than 5,000 sq ft, and offers enhanced convenience with a drive-thru and self-ordering kiosks.
🌱 Product
Jane Gold Puts $1 Million Back in Consumers’ Pockets. Jane Gold is the first rewards program to enable brand-funded cash back across a national dispensary network. Moving beyond traditional loyalty frameworks, Jane Gold creates an entirely new category–offering brands a direct way to reward consumers, drive targeted growth, and measure performance, all while protecting dispensary margins and ensuring full compliance. Since its 10-market beta launch, one in 10 online shoppers have enrolled in Jane Gold. To date, participants have purchased more than 250,000 items through the program, accounting for $7.5M in total spending. Unlike traditional dispensary discounts, Jane Gold acts as a brand-funded rewards layer that complements existing retailer loyalty programs. By integrating seamlessly with a retailer’s CRM and point-of-sale systems, the program allows brands to engage consumers directly, deploy targeted offers, and measure the exact ROI on their marketing spend.
ShelfSpace launches to bring Scan-Based Trading (SBT) to the Cannabis industry. This is similar to “consignment”, a term more people are familiar with. Retailers pay for inventory only when it sells, at a fixed margin, eliminating locked-up cash / margin compression. Vendors get guaranteed, contractually protected weekly payments based on sell-through without chasing AR. ShelfSpace was launched by Diem Cannabis CEO Chris Mitchem, through his experience with dispensaries in OR and MA.
True Terpenes Launches Headstash™: A Breakthrough in Compliant Cannabis Aroma Science. While much of the cannabis industry has focused on THC potency levels and loud, front-loaded terpene profiles, Headstash addresses a different and more persistent challenge: how aroma and flavor degrade across real-world supply chains, from harvest, curing, extraction, formulation, and production to distribution, retail handling, and consumer use.
🧔 People
Glass House Appoints Heinken, USA CMO Alison Payne to Board of Directors. Payne fills the vacant seat on the Company’s Board vacated by the passing of long-term Board Member George Raveling in September 2025. She currently serves as the CMO of Heineken, USA. During her career she held senior roles at PepsiCo, Kellogg Company, and Diageo.
WM Technology Appoints Harry DeMott and Brent Cox to Board of Directors and Executive Employment Arrangement with CFO Susan Echard. Harry DeMott is a General Partner of Raptor Ventures, which he co-founded, and is part of the founding group at Outsider Labs, an AI startup. DeMott previously founded and served as CEO of Proper, a data company focused on the cannabis industry, and has served on public-company boards including Workhorse Group and Achari Ventures Holdings Corp. Brent Cox is the Founder and Managing Principal of Subtext Holdings, a private investment firm with an emphasis on high-growth emerging markets and regulated industries, and Co-Founder and Managing Partner of The Inception Companies. He currently serves on the board of Ispire Technology.
Metrc Names BJ Fox CTO. Fox, who joined the company in 2025, has already played a critical role in accelerating key user-focused initiatives, including the refreshed UI. As CTO, he oversees product and technology strategy, drives innovation, and further enhances the reliability and performance of the nation’s most widely used cannabis track-and-trace platform.
Kansas City Cannabis Company Promotes Forest Palmer to CEO. Palmer succeeds Dan Nelson, who will transition into a newly appointed role on the company’s Board of Directors. Palmer has spent nearly seven years with KCC, previously serving as Director of Operations, COO, and Chief Strategy Officer.
🎙️ Interviews
The Hotbox with Aaron Morris | Fat Nugs
Thomas Winstanley of Edibles.com | High Spirits
SparkPlug CEO Andrew Duffy | This Week in Startups
Leaflink’s Ashwin Raj on Cannabis’ Next Phase | High Spirits
Inside Greentank’s Playbook for Consumer-First Vape Hardware | mg
Building the Digital Backbone of Cannabis | Through the Oculus
He’s Running the Family Business, With Innovation at Its Core | Colgate Magazine
How Terry Mendez redefined cannabis banking at Safe Harbor Financial | MJBizDaily