💳 Vireo Growth Acquires Schwazze Outstanding Convertible Debt
24% Michigan cannabis tax hike approved. Verano $75M Revolving Credit Facility. Simplifya Raises $2M. Flowhub Launches Marketing Suite. Happy Munkey temporarily closes Brooklyn dispensary.
🌿 Industry
California to regulate hemp and marijuana under one framework. California Gov. Gavin Newsom on signed new legislation to regulate intoxicating hemp products and strengthen efforts to prevent illegal sales, particularly to children. — MJBizDaily
Assembly Bill 8 is a move toward regulating all intoxicating cannabinoid products – whether derived from hemp or marijuana – under a single regulatory framework, according to a news release from Newsom’s office
The legislation builds on emergency regulations the Department of Public Health introduced in 2024 to protect residents from harmful hemp cannabinoid products
24% Michigan cannabis tax hike approved. Michigan cannabis will soon become some of the most heavily taxed in the U.S. after state lawmakers approved a new 24% wholesale tax early Friday. — MLive
That’s on top of an existing 10% excise tax and a 6% sales tax in the $3.2 billion market, which operators now fear will shrink as consumers are driven to seek cheaper alternatives, including on the illicit market
The tax increase takes effect in January
THC drink makers fear new Minnesota rules could tank market. Hemp beverage businesses tell the Office of Cannabis Management that new testing and labeling requirements could harm THC drink makers and the stores and breweries that sell them. — The Minnesota Star Tribune
At the center of their concerns is a requirement that all low-potency hemp edibles be tested at Minnesota-licensed labs. The requirement is part of a state law created to ensure consistent product safety and consumer awareness across hemp and cannabis products
Currently, two labs are licensed, which is not enough to handle testing demand, industry leaders say. Companies also say they are alarmed by labeling requirements that would force products to list the manufacturer’s, cultivator’s and processor’s names and license numbers, arguing the rules will delay production, drive up costs and be difficult to implement
Ohio cannabis companies sue regulators over strict rules. Seven Ohio cannabis companies are suing state regulators to overturn strict product and advertising rules they claim conflict with the state’s 2023 voter-approved legalization law. — MJBizDaily
According to court documents, the state informed Ohio Cannabis that it could not use the phrase “Merry Christmas” in advertisements or promote holiday deals, citing concerns that holidays are associated with children
The lawsuit also claims that officials rejected specific cannabis strain names, such as Strawberry Shortcake, Kandy Kane and Shadow Realm. Ohio regulations forbid companies from naming strains after flavors not naturally found in cannabis because they could appeal to children
The first cannabis testing laboratory in Massachusetts to be suspended for alleged testing fraud is now the first to attempt to recover its reputation–and its business–following scandal. Assured Testing Laboratories, which reopened Sept. 15 following a settlement with state regulators that avoided litigation but included a fine, tested as much as 25% of the cannabis in the $1.6 billion market before its July 1 suspension. — MJBizDaily
Over $90M of Maryland cannabis tax revenue is sitting in limbo. Less than $1M of the $93M in the Community Reinvestment and Repair Fund had been spent as of February, according to the Maryland Office of Social Equity’s annual report released in April. — Baltimore Business Journal
Efforts to disperse the dollars have been stymied by a lack of up-to-date and detailed data as well as by a drawn-out legislative process that makes it harder for local governments to get the funds out quickly, leading state officials to try to make key reforms to the process this year
Cannabis recalls in Colorado are affecting more marijuana retailers in the state than ever before, according to a recent analysis. Following a Sept. 9 recall of products sold at 172 Colorado cannabis stores – one of the largest in state history – a total of 465 marijuana retailers have sold cannabis later recalled in 2025, Colorado Public Radio (CPR) reported. — MJBizDaily
💵 Deals
Vireo Growth to Acquire 86% of Schwazze Outstanding Convertible Debt. The Notes will be acquired at a price substantially below par value, for total consideration of ~$62M payable in subordinate voting shares of the Company at closing, at a deemed price per share of $0.54.
Verano Secures $75M Revolving Credit Facility from Chicago Atlantic. Upon closing the Revolver, the Company drew $50M to pay down $50M of higher interest rate debt from its existing senior secured credit facility without incurring any prepayment penalty, with the remaining $25M being available to fund strategic initiatives. The Revolver, which is secured by selected real estate, provides Verano a range of benefits including lower cost debt, payoff and redraw flexibility, and optionality to have certain real estate released as collateral under the Revolver. Details of the Revolver are as follows:
A floating annual interest rate on amounts drawn equal to SOFR plus 6% (subject to a 4% SOFR floor)
No required amortization payments over the course of the Revolver
Matures on September 29, 2028, allowing for repayment at any time in $2.5M increments, subject to an interest-only make-whole if repaid before the six-month anniversary of funding
The proportionate release of certain real estate upon request and so long as the outstanding principal balance under the Revolver does not exceed 60% of the appraised value of the remaining pledged real estate
Lume to acquire 3 former Gage cannabis dispensaries. Terms of the deal were not disclosed. The acquisition boosts Lume’s cannabis store count to 42 across Michigan, complementing its large cultivation facility in Evart. The acquisitions stem from TerrAscend’s exit from the state earlier this month. The company announced in July that it would close all 20 of its dispensaries in the state along with its four cultivation and processing facilities with a planned termination of 252 employees.
Simplifya Raises $2M. The round was led by strategic investor ITWH LLC, a wholly-owned subsidiary of In The Weeds (ITW), with additional participation from existing investor Blue Zone Wealth Advisors. A portion of the capital was used to retire outstanding debt. As part of its growth strategy, Simplifya has partnered with In The Weeds (ITW) to deliver enhanced solutions for insurance carriers, brokers, banks and non-bank lenders serving the cannabis and hemp industries.
Ascend Wellness Closes $9.3M Mortgage Financing on 3 Ohio Properties. The Ohio Mortgage Loan with with CF Bank bears interest at a competitive 8.5% per annum and matures in September 2030. The Ohio Mortgage Loan is secured by real estate owned by AWH in Cincinnati, Sandusky and Piqua, Ohio.
📄 Company Updates
LEEF Brands Launches New York Lab, 2025 Production Fully Committed. The Company has completed installation of its equipment and has commenced solventless concentrate production, with hydrocarbon capabilities expected to come online next quarter. All concentrate production for 2025 has already been allocated to a combination of LEEF’s established brand partners, many of whom are also leaders in New York, as well as a select group of new in-state clients.
🏬 Retail
Happy Munkey shutters second NYC dispensary less than a year after it opened. The closure of its Brooklyn location was confirmed to Crain’s New York Business by several cannabis industry sources who said the location shuttered in August after opening in November 2024. The company, founded in 2017 by a pair of friends who used to operate in the underground marijuana market, still operates its first dispensary location on Dyckman Street in the Inwood neighborhood of north Manhattan. But several industry sources voiced skepticism that the company would be able to reopen its Brooklyn location, due to several factors. One indicator that the Happy Munkey brand is in trouble is its current placement on the so-called “COD list,” a list of retailers kept by the state Office of Cannabis Management of dispensaries that are not up to date on bills due from cannabis suppliers.
GTI Opens 19th Pennsylvania Dispensary in Lebanon, 108th nationwide.
🌱 Product
Flowhub Launches Marketing Suite to Help Cannabis Dispensaries Drive Loyalty, Revenue. Flowhub Marketing Suite allows dispensaries to launch custom loyalty programs and targeted campaigns from one system powered by real-time, first-party POS data. Key advantages of Flowhub Marketing Suite include:
Clean, first-party customer data: All customer data lives directly in Flowhub POS, giving dispensaries a compliant, accurate foundation for campaigns
Smart audience segmentation: Create dynamic customer audiences based on purchase history, frequency, spend, or preferences. For example, retailers can quickly target one-time big spenders and lapsed customers who haven’t shopped in 60 days in real time
VIP loyalty passes: Dispensary customers can easily enroll in loyalty and store a custom digital pass in Apple or Google Wallet. These passes enable push notifications, geo-targeted reminders, and unlock exclusive VIP perks directly at checkout
Push notifications: Delivered directly to a customer’s smartphone lock screen with 90%+ visibility, push notifications bypass cannabis-related SMS restrictions and reach customers at lower cost with no app download required
Personalized email campaigns: Flowhub’s drag-and-drop email editor allows dispensaries to design and send branded messages tailored with customer data such as loyalty status or purchase history
Built-in campaign attribution: Every campaign is tied directly to POS sales data, giving retailers clear visibility into revenue impact, customer lifetime value, and overall return on investment
Curaleaf Expands Anthem Brand Portfolio with Launch of Anthem Bold Infused Pre-Rolls, Celebrating American-Grown Cannabis. Building on Anthem’s initial launch in Arizona, Florida, Illinois, Massachusetts, New York and New Jersey, Anthem Bold is Curaleaf’s newest premium pre-roll offering. Known as an all-American pre-roll brand, Anthem’s premier product Anthem Classic launched in April, offering a quality experience for the everyday consumer. Crafted with care, the new Anthem Bold delivers premium, high-potency flower for consumers looking to elevate any evening. Anthem Bold infuses Anthem premium flower with THCA diamonds and strain-specific terpenes for enhanced flavor and a purely potent boost, averaging around 40% THC.
The Cannabist Company Partners x Queen Mary to Launch Wellness-Focused Cannabis Products in Colorado. Queen Mary’s signature Sativa Rosin and Indica Rosin gummies will be available at all 19 Cannabist Company dispensaries.
Goldflower Cannabis x Doghouse Farms brings flavor-driven, high-potency genetics to Florida. Founded in Oregon in 2015 by Jon Hudnall, Doghouse Farms has since expanded into WA, MI, and now FL. Doghouse Farms flower is now available at all Goldflower dispensaries across Florida with the gorgeous DH Farms 7 pre-roll packs dropping in October. Future collaborations between the two companies will also explore limited drops, exclusive genetics, and cross-market innovation.
🧔 People
Hydrofarm Board Changes. Chris Yetter has been appointed to serve on the Board and the Compensation Committee of the Board. Susan P. Peters has notified the Company of her intention to retire to spend more time with family and tendered her resignation from the Company’s Board, also effective October 1, 2025. Yetter has served since 2018 as the Founder and Chief Investment Officer of Dumont Global, a private investment partnership and affiliate of Dumont Master Fund LP, a long standing stockholder of the Company. Mr. Yetter also serves as a director for Minneapolis Cider Co. (d.b.a. Trail Magic), a producer of cider and hemp-derived beverages, a position he has held since 2024.
🎙️ Interviews
Weed for the People—Taxed or Otherwise: Elliot Lewis Unfiltered | High Spirits
$28.4B Dollar Hemp Industry Can’t Be Put Back in the Bottle ft Jim Higdon | The Dime
The Future of Intoxicating Hemp with Tucker Johnson | Higher Exchanges