❌ Virginia Governor Vetoes Adult-Use Retail Cannabis Market Bill
Cannabis Bankruptcy Relief Broadens with Delaware Court Ruling. IRS wants TerrAscend to return $8.3M wrongly issued 280E refund. FundCanna Secures up to $60M Senior CF. IIPR Closes $45M Secured TL
IgniteIt’s Cannabis Capital Conference is three weeks out—if you are planning to be in attendance and want to connect there, please let me know. If you’re late to buying tickets, you can use code: HIGHLYOBJECTIVE or link for a 20% discount.
🌿 Industry
Cannabis Bankruptcy Relief Broadens With Delaware Court Ruling. A US court’s recognition of Cannabist Co.’s Canadian insolvency proceedings is outlining a path for cannabis companies with a foreign presence seeking bankruptcy protection, a relief that has previously been denied because marijuana remains illegal under federal law. — Bloomberg Law
Chapter 15, which governs foreign proceedings, had been an untapped option for cannabis businesses until now, partly because companies were hesitant to pursue bankruptcy, said David J. Cohen, a partner at Weil, Gotshal & Manges LLP who serves as counsel for Cannabist’s foreign representative in the US case
Businesses also must qualify for foreign insolvency proceedings before seeking US recognition
“Combined with some regulatory changes that probably provided enough impetus, at least in these circumstances, the facts made it make sense to pursue this path,” Cohen said. “It’s not going to be the right path for every company, but for those who have a cross-border element, it’s certainly a good alternative”
Virginia Governor Spanberger Vetoes Adult-Use Retail Cannabis Market Bill. In a stunning reversal of a campaign-trail commitment, Gov. Abigail Spanberger (D) vetoed HB 2485, the bill that would have stood up Virginia’s long-delayed adult-use retail market. — MJBizDaily
Sponsors had widely expected Spanberger to sign after prior Gov. Youngkin vetoes; the Democratic-controlled General Assembly does not have the supermajority needed to override
Industry advocates called the move “outrageous” and warned the illicit market continues to capture the demand that a regulated channel was designed to recapture
Days before Spanberger vetoed the cannabis commercialization legislation, CSBA, hemp companies and major alcohol retailer Total Wine & More sent the governor a letter asking her to do so and then “revisit” the issue in the 2027 session after “thorough stakeholder engagement and economic policy expert input”
In a troubling sign for cannabis operators that claimed 280E relief before rescheduling, the IRS wants TerrAscend to return $8.3M. Tax experts warned the situation may signal the government’s position on the collective $1.6B in 280E tax debt owed by publicly traded cannabis companies as of earlier this year. — MJBizDaily
While this is the first known instance of the government attempting to claw back a wrongly issued 280E refund to a cannabis operator, other companies could have settled similar matters quietly, outside of the courts
‘Big Tobacco’ Moment for Cannabis: What Insurers Need to Know About Murray v. Cresco. A massive 320-page class action complaint has the attention of the cannabis sector. The insurance professionals who underwrite it should also be paying close attention. — Claims Journal
The case, Murray et al. v. Cresco Labs Inc. et al., was filed on May 4 in the U.S. District Court for the Northern District of Illinois. It represents the most ambitious legal assault yet on the marketing practices of MSOs
The complaint makes explicit comparisons to the litigation playbook against “Big Tobacco” in the 1990s. With claims across 12 states and spanning allegations of Racketeer Influenced and Corrupt Organizations (RICO), consumer fraud, breach of warranty, negligent misrepresentation and more
The underwriting on cannabis product liability has, to date, focused on potential contamination, mislabeling, and the occasional exposure or ingestion-based bodily injury claim. Murray v. Cresco, however, introduces a different species of claim, one rooted in marketing conduct rather than product defect in the traditional sense
Good Day Farm faces second Missouri antitrust lawsuit in two weeks. A Kansas City marijuana consumer alleges the Arkansas company and its affiliates used a web of LLCs to limit competition and inflate prices. — Missouri Independent
Damon Frost Jr., who filed the class-action lawsuit argues that Missouri marijuana laws allow for no more than 22 dispensaries to be under “substantially common control, ownership or management”
A review by The Independent of publicly-available marijuana business compliance records revealed the state no longer requires owners of licensed dispensaries, manufacturers and cultivators to submit affidavits attesting they don’t share common control or management with other licenses
TSA Clarifies That Its Marijuana Policy ‘Has Not Changed’ Despite Clickbait Headlines. Numerous news organizations over the past week have run exaggerated headlines about a supposed change in the federal government’s policy on bringing marijuana into airports and on airplanes. — Marijuana Moment
But it isn’t true, the Transportation Security Administration (TSA) tells Marijuana Moment. “TSA’s policy on medical marijuana has not changed,” a TSA spokesperson said in an email
“Per TSA’s website: If any illegal substance or evidence of criminal activity is discovered during security screening, TSA will refer the matter to a law enforcement officer,” they said. While it is true that the agency’s listing for medical marijuana on the “What Can I Bring?” section of its website was updated on April 27, there was no substantive change in the policy
California Issues Emergency Rules to Help ~1,600 Licensees Pursue DEA Registration. California DCC’s emergency reg lets dual-licensed retailers and microbusinesses separate adult-use and medicinal licenses so the medicinal entity can apply independently for Schedule III DEA registration before the 60-day window closes in late June. — DCC
Louisiana House Passes SB 270 Allowing Medical Cannabis in End-of-Life Care Settings. Bill (previously approved by the Senate 33-2) heads to the governor; would allow terminally ill patients to use medical cannabis in qualifying healthcare facilities starting Aug. 1, 2026, though staff may not assist. — Marijuana Moment
Nevada Forfeits ~$80M Annually From the 1,500-Foot Cannabis-Gaming Buffer. A UNLV Cannabis Policy Institute report estimates total supply-chain losses at $750M annually as illicit operators fill the gap on/around the Las Vegas Strip.
New Global Cannabis Report from GCNC and Whitney Economics Examines How Pricing Compression Reshapes Emerging Markets. The report, What You Need to Know: Pricing Compression and Its Impact on International Cannabis Markets, combines quantitative analysis from Whitney Economics with qualitative insight from operators, economists, legal experts, and market leaders across North America, Europe, Latin America, and Israel.
💵 Deals
FundCanna Secures up to $60M Senior Credit Facility to Expand Cannabis Funding Platform. The new senior credit facility comes from a global institutional investment firm with ~$40 billion in assets under management. The facility provides $35 million at close, with additional capital available as FundCanna scales its portfolio. In conjunction with the facility, FundCanna is restructuring its broader capital base, including new and existing investor participation, bringing total capital to $75 million. Based on its historical capital velocity, the company expects the new structure to support more than $500 million in cumulative funding across the cannabis industry over the next several years. Since inception, FundCanna has deployed more than $250M in capital after initially raising ~$25M from private investors, reflecting roughly 10x capital deployment. The company has originated more than 5,000 transactions and will soon exceed a $100M annualized run rate, primarily serving small- and mid-sized operators across the cannabis supply chain.
IIPR Closes $45M in Secured Term Loans. Four secured term loans, ~$44.9M gross proceeds, five-year initial term at a 6.67% fixed rate, backed by property liens. Proceeds will help repay IIPR’s unsecured notes maturing at the end of May, following its $56.5M secured TL closed earlier this month.
Glass House Brands Files Prospectus Supplement for At-The-Market Distribution Program. Glass House filed the prospectus supplement to its May 16, 2024 short-form base shelf prospectus to formally launch the previously announced ATM equity program — providing the company with flexible equity capacity as it builds out Greenhouse 2 and prepares Schedule III medical operations.
📄 Company Updates / Earnings
Ascend Wellness (AWH) Q1 2026 Net revenue $116.9M (-3% QoQ); Retail $83.1M / Wholesale $33.8M; Adj. Gross Margin 46.1% (+70 bps QoQ); Net loss $(29.5M); Adj. EBITDA $26.3M (22.5% margin); Cash $60.9M
Glass House Brands Q1 2026 Revenue $40.5M (vs. $44.8M YoY and $38.9M sequentially); ASP $171/lb; biomass production ~152k lbs; Gross Margin 25%; Adj. EBITDA $(4.2M); operating cash flow $(11.8M); cost/lb of $175 (vs. $108 YoY) — driven by Greenhouse 2 ramp; cash $27.9M. Reiterated full-year 1.0M-lb production target and $95/lb cost target
MariMed Q1 2026 Revenue $39.5M (+4.2% YoY); Adj. EBITDA $3.6M (+44% YoY)
🏬 Retail / Cultivation
Broad Street Buds opens in Phillipsburg, NJ. As cannabis retail continues to evolve throughout New Jersey, Broad Street Buds is positioning itself as a destination focused on accessibility, education, convenience, and community.
Callie’s Apothecary — Alabama’s First Medical Cannabis Dispensary — Set to Open in Montgomery. Long-awaited debut following years of delays in the state’s medical cannabis licensing litigation; first patient sales expected in the coming weeks pending final state sign-off.
Planet 13 Receives OMMU Approval for Florida BHO Extraction Facility. Approval clears Planet 13 to internally produce concentrates for its Florida medical operations rather than relying on third-party processors — a meaningful margin lever as the company scales in-state vertical integration.
High Tide Opens Another Canna Cabana in Toronto, Ontario. Brings High Tide’s total to 222 Canna Cabana locations across Canada and 98 in Ontario.
Off The Charts Continues California Expansion. Multi-store buildout across the state under CEO Norman Yousif, leaning into California’s distressed-retail consolidation window.
🌱 Product
Death Row Records Cannabis Expands Into Nevada. Death Row Records Cannabis has expanded into Nevada, alongside a significant wave of new product introductions that will soon roll out into additional markets where the brand is sold. New offerings include 1-gram and 2-gram 510 vape cartridges and a branded disposable vape, engineered for performance and portability. The 1-gram disposable device features a ceramic coil and postless design, delivering smooth, consistent hits from first puff to last. It launches in six flavor profiles—Watermelon Mojito, Blue Widow, Holy Cannoli, Grape Ape, Platinum OG, and Strawberry Fields—balancing flavor-forward options with classic strains to appeal to a wide range of consumers. The company also enters the edibles category with Death Row gummies, marking its first move into edibles and expanding accessibility for new consumers, alongside its pre-roll lineup and the debut of its infused pre-roll, the “Sugar Cone,” positioning Death Row squarely within the fast-growing infused pre-roll category, delivering a more potent, elevated experience.
🧔 People
Brady Cobb to Lead Splash Beverage Group’s Cannabinoid Pivot. Sunburn Cannabis Founder and CEO Brady Cobb has taken the helm at publicly traded Splash Beverage Group after the company appointed him interim CEO. Cobb has served on the company’s board since February.
Ascend Wellness Permanently Closes Lansing, MI Cultivation Facility (~95 Layoffs). Continued Michigan price compression cited as the trigger; the site shutdown is part of AWH’s broader margin discipline as it pivots capital toward retail densification (51 stores today, targeting 60+ by year-end).
Fluent Trims NY Operations Ahead of Vireo Deal. Etain, owned by Fluent, will close its Chestertown cultivation and packaging facility; ~37 jobs eliminated as the business is restructured ahead of the previously announced Vireo Growth acquisition.
Massachusetts Governor Maura Healey Appoints New Cannabis Control Commissioners. Massachusetts Gov. Maura Healey appointed Christopher Harding, Xiomara DeLobato and Anthony Wilson to lead the Cannabis Control Commission through a series of long-awaited reforms.
🎙️ Podcasts / Interviews
You Walk Into a Dispensary... Then What? | Ganja Granny
Cannabis Lending After Schedule III | Higher Exchanges
Unmasking Cannabis Pathogens with TUMI Genomics CEO Melanie Nash | High Spirits