This Week In Cannabis: Gaetz's Stock Rally, Major Policy Battles, Homeland Security's Stance, Big Earnings And More

The cannabis industry saw major developments this week across policy, business and market trends. On the regulatory front, Florida’s appeals court upheld the state’s $1.3 million medical cannabis license renewal fees. At the same time, Virginia Governor Glenn Youngkin vetoed a cannabis sales bill—again—effectively delaying the state’s market for at least another year. Meanwhile, New York expanded its cannabis farmers market program, offering new opportunities for licensed businesses.

In federal news, a new court filing from Homeland Security and Customs and Border Protection reaffirmed that marijuana can still be "summarily" seized from state-legal businesses unless rescheduling changes federal cannabis policy. The uncertainty surrounding cannabis' classification continues to influence market sentiment, as seen in this week’s brief rally in cannabis stocks following former Rep. Matt Gaetz's statements about cannabis reform "being on the horizon."

On the business side, Organigram rebranded to Organigram Global, reflecting its growing international ambitions, while iAnthus and Planet 13 reported earnings, offering insights into U.S. market performance. In Canada, cannabis sales dipped sharply in January, highlighting continued volatility in the sector.

Consumer and industry trends also made waves: a new study revealed that shifting from indoor to outdoor cannabis cultivation could cut emissions by up to 76%, while Ohio's cannabis industry hit a major milestone, surpassing $2.5 billion in total sales.

Let's dive into the biggest cannabis stories of the week.

Policy And Regulation

Florida Court Upholds $1.3 Million Medical Cannabis License Renewal Fee

A Florida appeals court ruled in favor of the state's $1.3 million medical cannabis license renewal fee, rejecting arguments that the cost is unconstitutional. The fee, one of the highest in the nation, applies to all licensed medical marijuana treatment centers operating in the state.

Several operators had challenged the renewal cost, arguing that it was excessive and hindered competition. However, the court sided with state regulators, affirming their authority to set fees at levels deemed necessary to oversee the industry. Florida's medical cannabis market remains one of the largest in the U.S., but the ruling adds financial pressure on businesses seeking to maintain licensure in the state.

Virginia Governor Vetoes Cannabis Sales Bill—Again

For the second time, Virginia Governor Glenn Youngkin has vetoed a bill that would have allowed regulated cannabis sales in the state. The decision delays Virginia's legal adult-use market, which voters approved in 2021 but has yet to fully launch.

The vetoed legislation sought to create a regulated system for cannabis sales, including licensing and taxation. In his statement, Youngkin reiterated concerns about public health, safety and enforcement. Lawmakers and industry advocates had pushed for the bill's passage, arguing that delays in implementing a regulated market only serve to fuel the illicit trade. With the veto, Virginia's legal cannabis industry remains in limbo, forcing businesses and consumers to wait for a new political approach.

New York Expands Cannabis Farmers Market Program

New York's Office of Cannabis Management (OCM) is expanding its cannabis farmers market initiative, allowing more licensed businesses to participate in direct-to-consumer sales. The program debuted last year as a temporary solution to the state's slow retail rollout, enabling small growers and processors to sell products at designated locations without needing a standalone dispensary.

The expansion comes as the state struggles with licensing delays and an illicit market that outpaces legal sales. The farmers market model has been praised for helping small operators gain market access, but critics argue that New York's broader licensing issues remain unresolved.

Federal Agencies Reaffirm That Cannabis Can Still Be Seized, Even In Legal States

A new federal court filing by Homeland Security and Customs and Border Protection (CBP) confirms that marijuana remains subject to summary seizure, even when transported between two legal states. The filing states that federal law still classifies cannabis as a Schedule I drug, allowing authorities to confiscate shipments without requiring criminal charges.

The legal stance reinforces ongoing challenges faced by interstate cannabis commerce advocates, particularly those hoping for federal rescheduling to ease restrictions. Industry leaders argue that such policies are outdated and hinder business growth, while law enforcement maintains that federal prohibition gives agencies broad authority to regulate cannabis transportation.

DEA Launches Anti-Weed Influencer Campaign, Sparking Criticism

The U.S. Drug Enforcement Administration (DEA) has launched an anti-cannabis social media campaign, paying teenagers to create anti-weed content ahead of April 20 (4/20). The initiative, led by nonprofit Johnny's Ambassadors, offers students between $25 and $50 per video, aiming to "flood" Instagram with anti-THC messaging.

Critics argue that the campaign relies on outdated fear tactics rather than harm reduction strategies. The timing has also raised eyebrows, as federal rescheduling discussions are still ongoing. Many see the campaign as a last-ditch effort to push back against growing public and political support for cannabis reform.

Read more on Benzinga.

Markets And Business Updates

Canadian Cannabis Sales Drop 14.9% In January

Cannabis sales in Canada took a sharp downturn in January, falling 14.9% from December levels to C$418.3 million, according to Statistics Canada. December's figures were revised down from C$499.4 million to C$491.6 million, showing a continued pattern of sales volatility.

Despite the month-over-month decline, sales were still up 4.1% from the previous year. However, the slowdown marked a contrast from the strong 20.3% year-over-year growth rate recorded in August 2023.

Regionally, the country's largest cannabis market, Ontario, saw sales drop 24.4% from December and 4% from the previous year. Alberta declined 6.6% month-over-month but was still up 10% from the prior year. Quebec also reported a decrease of 13.8% from December, while British Columbia was the outlier, showing a surprising 7.7% monthly increase and a 34% jump from the previous year.

Hifyre IQ had projected January sales at C$463 million, making the actual reported numbers significantly lower than expectations.

Planet 13 Reports 31.8% Revenue Growth But Wider Net Loss

Planet 13 Holdings PLTH PLNHF saw a revenue increase of 31.8% in Q4 2024, reaching $30.3 million compared to $23 million in the prior year. The growth was largely attributed to the company's expansion into Florida.

Despite the revenue jump, gross margins declined from 47.8% to 43.2% due to price compression and aggressive discounting strategies in Florida. Operating expenses nearly doubled, reaching $35.8 million, including an $18.9 million impairment loss.

The company reported a net loss of $26.4 million for the quarter, widening from a $14.3 million loss in Q4 2023. Adjusted EBITDA came in flat at $0, compared to $1.3 million in the prior year.

For the full year 2024, Planet 13 generated $116.4 million in revenue, an 18.2% increase, while its net loss narrowed to $47.8 million from $73.6 million in 2023.

In terms of cash flow, the company ended the year with $25.4 million in cash, up from $17.3 million. Looking ahead, the company aims to improve per-store performance, optimize operations, and enhance overall margins.

iAnthus Revenue Increases 5.2% As Losses Narrow

iAnthus Capital Holdings IAN ITHUF posted $167.6 million in revenue for 2024, marking a 5.2% increase over the prior year. Gross profit rose 18.9% to $75.1 million, while gross margins expanded to 45%, up 516 basis points from 2023.

The company reported a net loss of $7.6 million for the year, a significant improvement from the $76.6 million loss recorded in 2023. Adjusted EBITDA nearly tripled, reaching $23.9 million.

In Q4 2024, iAnthus generated $42.7 million in revenue, with a gross profit of $19.1 million and a net income of $27.8 million—an improvement from a net loss of $18.7 million in the same period of 2023.

The company attributed its financial turnaround to operational improvements, cost efficiencies, and market expansion strategies.

Verano Secures $12 Million Mortgage For Cultivation Facilities

Verano Holdings VRNO VRNOF has closed a $12 million cross-collateralized senior mortgage with Rainbow Realty Group, securing funds against two of its key cultivation and processing properties in North Las Vegas, Nevada, and Coolidge, Arizona.

The Arizona facility spans 7.44 acres and includes three industrial buildings totaling 51,981 square feet, while the Nevada site covers 4.86 acres with a 41,625-square-foot processing facility.

Rainbow Realty Group emphasized the strategic importance of these properties in Verano's operations, highlighting their positioning in strong real estate markets and the upgrades made to meet industry standards.

This marks Rainbow's first deal in Arizona, expanding its cannabis real estate footprint to 12 states.

Ohio's Cannabis Sales Surpass $2.5 Billion

Ohio's cannabis industry has officially exceeded $2.5 billion in total sales, with recreational purchases driving recent growth. Since adult-use sales began seven months ago, they have contributed more than $390 million to the total market.

The industry’s financial success has reignited debates over how tax revenue should be allocated. Governor Mike DeWine and other state lawmakers are pushing to redirect cannabis tax funds toward police training and mental health services rather than social equity programs.

The shift in funding priorities has sparked discussions among advocates and industry stakeholders about the long-term implications for equity-focused initiatives in Ohio's legal market.

22Red Launches Live Hash Rosin Vape In Arizona

Cannabis brand 22Red has introduced its Live Hash Rosin All-in-One Vape, now available in Curaleaf dispensaries across Arizona. The product uses Rosin Bar technology, a system that keeps terpenes and THC separated until inhalation, ensuring each component vaporizes at the ideal temperature for enhanced flavor and potency.

The device features 0.5 grams of premium live ice-water hash rosin, made using a solventless process that preserves the plant's full spectrum. It comes in four strain varieties:

• BCC x Jealousy (50/50 hybrid)
• Hi Octane (50/50 hybrid)
• L.A. Banana Cake #5 (indica dominant)
• Hawaiian Dream (sativa dominant)

The new vape offering aligns with 22Red's focus on high-quality, solventless cannabis extracts, maintaining purity by using only ice, water, heat, and pressure in the extraction process.

Vertosa Appoints Diana Eberlein As Chief External Affairs Officer

Vertosa, a cannabis and hemp beverage infusion technology provider, has named Diana Eberlein its chief external affairs officer. Eberlein previously served as chair of the Coalition for Adult Beverage Alternatives (CABA) and president of the Cannabis Beverage Association (CBA), playing a pivotal role in shaping the cannabis beverage sector.

In this role, she will focus on regulatory advancements, industry standardization, and expanding market opportunities for THC-infused drinks. Vertosa CEO Ben Larson noted that Eberlein's expertise is crucial for navigating shifting federal and state-level regulations.

"This is a critical time for the cannabis industry," said Larson. "Diana has been a driving force behind the cannabis beverage movement from the very beginning."

Eberlein added, "Vertosa's impact-driven culture and commitment to science and innovation make this an incredibly exciting partnership."

The appointment comes amid growing consumer demand for cannabis beverages and increased legislative scrutiny around the sector.

Tilray And HEXO Dismiss $8 Million Lawsuit

Tilray Brands TLRY and its subsidiary, HEXO Corporation, successfully dismissed a lawsuit from Clement Italume, who sought $8 million in damages over claims of improper shareholder notification regarding a reverse stock split.

A Massachusetts Superior Court ruled in favor of Tilray and HEXO, rejecting the plaintiff's argument that corporate actions caused financial harm. The decision removes legal uncertainty for Tilray, which continues expanding its U.S. presence, including the relaunch of HiBall Energy, a health-conscious energy drink brand.

Organigram Rebrands To Organigram Global, Emphasizing International Growth

Organigram Holdings OGI has officially rebranded to Organigram Global, reflecting its evolution from a Canadian medical cannabis company to an international player. The company has already secured a 7% market share in Germany through its investment in Sanity Group and is actively expanding into international markets.

“As Organigram has grown from its roots in Atlantic Canada to become a global player, our identity needed to evolve alongside our business,” said CEO Beena Goldenberg.

The company has also launched a new corporate website, reinforcing its global vision.

Canopy Growth's Future Hinges On U.S. Regulations, Says Analyst

Zuanic & Associates initiated coverage on Canopy Growth CGC with a neutral rating, citing regulatory uncertainty as a major concern. The report highlighted Canopy's expansion into the U.S. via investments in brands like Wana Brands, Jetty Extracts and Acreage Holdings, but noted that success remains dependent on federal cannabis reform.

While the company has made strides in cutting costs and improving efficiency, it remains EBITDA-negative and continues to face challenges in the Canadian and international markets. Investors are closely watching whether new CEO Luc Mongeau can drive profitability and long-term growth.

Read more on Benzinga.

Cannabis Stocks Rally, Then Retreat After Matt Gaetz's Rescheduling Comments

Cannabis stocks surged on Thursday after former Rep. Matt Gaetz (R-Fla.) claimed that rescheduling cannabis is "on the horizon" under a Trump administration. Gaetz suggested that cannabis will likely be moved to Schedule III, a move that could significantly impact tax burdens, investment, and patient access.

Following his statement, cannabis stocks, including:

• Curaleaf Holdings CURLF jumped 12.87%
• Tilray Brands TLRY rose 8.97%
• Aurora Cannabis ACB gained 4.76%
• Trulieve Cannabis TCNNF climbed 2.11%

However, by Friday, most of these gains were partially erased, as the sector remains volatile amid ongoing federal uncertainty.

Read more on Benzinga.

Study Finds Outdoor Cultivation Could Cut Cannabis Emissions By 76%

A new study has found that shifting cannabis cultivation from indoor to outdoor operations could reduce the industry's carbon emissions by up to 76%. The research highlights that indoor cultivation is one of the largest contributors to cannabis-related greenhouse gas emissions, with energy-intensive lighting, ventilation, and temperature controls driving up carbon output.

As sustainability concerns grow, industry leaders are exploring eco-friendly cultivation methods, including greenhouses and regenerative farming techniques. Some regulators are also considering tax incentives to encourage outdoor growing, making environmental impact a key issue for the future of cannabis policy.

Culture And Social Trends

Ice-T Opens The Medicine Woman Jersey City, Blending Cannabis And Social Justice

Rapper and actor Ice-T has officially opened The Medicine Woman Jersey City, a 10,000-square-foot cannabis dispensary co-founded with Charis Burrett. The store aims to combine high-quality cannabis products with a commitment to social justice, prioritizing:

• Local hiring and workforce development, in partnership with Hudson County Community College
• Support for Last Prisoner Project, which helps individuals incarcerated for nonviolent cannabis offenses
• Community engagement, with a 420 "Blazing & Praising" celebration planned for April 19-20

During its soft opening on March 27, customers who showed Ice-T's Instagram post received a 25% discount, and the first 25 shoppers walked away with free gifts.

Read more on Benzinga.

Report: Drug Sales On Grindr In Chile Surge 793% In One Year

Drug sales on Grindr in Chile have skyrocketed by 793% in just one year, as traffickers increasingly use dating apps to conduct illicit sales, El Planteo reported.

According to Chilean law enforcement, cocaine, MDMA, and cannabis are the most commonly sold substances. Dealers use emojis to signal availability, making transactions difficult to track. Officials have deployed undercover agents on these platforms in an attempt to curb the surge.

Despite these efforts, experts believe that social media drug trafficking will continue to grow, mirroring global trends in encrypted and app-based transactions.

That’s it for today. Check Benzinga Cannabis every Friday for this recap of top cannabis news for each week.