🌊 Rough cannabis seas make strong cannabis sailors

CANNABIS CAPITAL
Jay’s takeaways from the Benzinga Cannabis Capital Conference

Rough seas make stronger sailors. Tough times build greater people. - Robin Sharma

In the cannabis industry, let’s fucking hope so. I just got back from the Benzinga Cannabis Capital Conference. Even in the name of the event itself are three things that are navigating rough seas: 

• Cannabis. 

• Capital.

• Conferences.

But, Benzinga does it right, and this event, as well as future Benzinga events are must-attend if you’re able. Some thoughts:

If you’ve been in the industry (and you’re staying) you have sailed rough seas:

Benzinga brings together a lot of familiar and leading industry faces. From leadership of the largest publicly traded cannabis firms to long-time service providers, investors, and media voices. Those that have been around the cannabis industry have seen a lot. They are scarred from the past battles, but not scared about what the future holds. Listening to what they say and watching where they’re going is always instructive. Companies are getting a lot better and sharper in their verticals. While you’re going through it, these times can hurt — but the companies that survive are getting stronger. 

If you’re new to the industry — and observant — you notice the weathered faces: 

Like any industry, there are always new people, either to the industry or even Benzinga first-timers. I hope the new folks listened to the folks who’ve been around the block. Even though the industry may look brighter today than it did in recent years, it is never easy, and those messages come through the (sometimes forced) optimism.

The only constant is change — and change is unreliable

I moderated a panel with Dutchie CEO Tim Barash and C3 Industries CEO Ankur Rangta about thriving in the tough year of 2024. And while the topic was how these two companies have navigated successfully through 2024 headwinds, when the question was posed to Ankur about what he’s looking ahead to in 2025, he was a hyper-realist. His view is that the changes that we all know lie ahead – rescheduling, banking reform, new legal states opening their markets, regulatory reform in older markets — are all uncertain. And what is certain is that the timeline is uncertain.

So my big takeaway from Benzinga: 

While the future may be bright for cannabis, the certainty of when that future is is not. 

So, get your ducks in a row. Get efficient now. Because the strong sailors are certainly in the industry now, and the tough times are building greater people.

- JR

“We believe that there is a greater likelihood that the upcoming US presidential elections will result in improved regulatory changes in the cannabis industry, as both candidates have publicly confirmed their support for further legalization,” Tilray CEO Irwin Simon said on the company’s earnings call on Thursday morning. 

Simon also discussed the company’s recent push into the intoxicating hemp-infused beverage space in the US. It seems like every company now wants a piece of that market — but is it FOMO, or is there a real business case? We want your thoughts!

As you look ahead to next week, we’ve got a great webinar coming up on Wednesday the 16th.

We’ve partnered with The Wagoner Firm and Park Strategies in New York to talk:

Transferring ownership of cannabis businesses in New York.

Signing up is free and easy. Head to our LinkedIn page and register.

See you on Wednesday.

Canadian cannabis and beverage company Tilray released its first-quarter 2025 earnings on Thursday before the market opened. The company reported a $34.7 million net loss — down from $55.9 million the same quarter last year — on $200 million revenue. That’s a 4 cent loss per share. Cannabis-only revenue was about $61 million, or 28% of total revenue. Tilray’s (TLRY) stock closed down 2.45%.

Vireo Growth has a new CEO and terminates agreement 

Vireo Growth has a few major updates. CEO and board member Josh Rosen is out, and he’ll be replaced by Amber Shimpa, who’s been with the company since its founding in 2014. Joe Duxbury will take over as interim CFO while they search for a replacement, and founder and chairman Kyle Kingsley will remain with the company. 

Vireo is also terminating its advisory agreement with Grown Rogue, an Oregon cannabis firm, and will forfeit 4,500,000 of the 8,500,000 share purchase warrants held by the company. 

Vireo is also embroiled in a lawsuit with competitor Verano Holdings, over a failed merger. 

Cansortium and RIV Capital officially combine

Cansortium and RIV Capital closed their planned merger, after New York state officials signed off on the deal. The combined company will have a footprint in multiple states, including Florida, New York, Texas, and Pennsylvania. ScottsMiracle-Gro, which previously invested in RIV, is exchanging its convertible notes for non-voting shares, eliminating $175 million of debt.

New York approves more licenses 🗽

New York’s Cannabis Control Board met on Thursday. The board approved 141 new licenses, as new dispensaries open seemingly every day across the state, for a total of 1,132 licenses approved this year. Officials also said they are working through the November application queue, and policy director John Kagia said that legal dispensary prices are on par, or below, the illicit market. Watch the meeting recap here. 

Oregon dispensary shooting leaves two dead 🛑

A recent shooting at a dispensary in Oregon was the result of an attempted armed robbery, according to police and local officials. Licensed cannabis shops are often targets for robbery and other crime, because federal illegality in the US mostly prohibits the use of card payments — so dispensaries always have a lot of cash. Many in the industry advocate for Congressional-led banking reform, like the SAFER Banking Act, that would reduce the need for all-cash transactions. Our heart goes out to the victims and their families. 

Guns and cannabis in federal court 🧑‍⚖️

Lawyers in a federal court sparred over a case about whether the government can disarm cannabis users. The case centers on whether it’s lawful to disarm a person for past substance use, reports Marijuana Moment. 

Florida’s legalization backers want home grow? 🦩

Smart & Safe Florida, the Trulieve-backed group pushing to pass Amendment 3 — a ballot measure that would legalize cannabis in Florida — says it is pro-home grow. But the ballot measure doesn’t specifically allow growing at home. That rule would have to be applied by the Florida Legislature, if the Amendment passes. The lack of the right to grow at home has been a consistent talking point for the anti-Amendment 3 crowd, who criticize the Amendment as a “corporate handout.”

Hemp companies fight California’s ban 🏖️

The US Hemp Roundtable, an industry lobbying group, and a group of hemp farmers and companies are petitioning California courts for a restraining order to prevent Gov. Gavin Newsom’s emergency ban on intoxicating hemp products. The ban went into effect on September 24. View the complaint here, and the restraining order application here.

Ohio’s cannabis sales hit $98 million in the first two months of legalization, reports Cannabis Business Times. This chart compares the first two months of sales in a number of states:

Returning to growth with Hydrofarm CEO Bill Toler | WTR Small-Cap Spotlight

Cannabis sales dropped $4.3 million from August to September. One less day might have something to do with that. | Albuquerque Journal