This Week In Cannabis: Earnings, Europe's Buzzing Scene, The UN And More

This week, I’m reporting from Spain where I attended C-Days – an event that made waves with its all-women keynotes lineup despite not being a female-focused conference. The speakers tackled a range of topics beyond gender-related issues, proving once again that women are leaders in every aspect of the cannabis industry. Among the standout speakers were Masha Burello, Natalia Kesselman, Luna Stower, The Dank Duchess, Polita Pepper and Mercedes Ponce de León, alongside cultivation legends Jorge Cervantes and Ed Rosenthal in roundtable discussions.

Following C-Days, I attended the International Cannabis Business Conference (ICBC), where it became clear that Europe's cannabis market is heating up fast, attracting serious players. Now, I'm heading to Spannabis, one of the world's largest cannabis events, before making my way to ICBC Berlin. Then I will head back across the pond to the Benzinga Cannabis Capital Conference in Chicago (June 8-10)—where deals get done and the industry's biggest decision-makers will gather. Get your tickets for the Benzinga conference now before prices go up.

Beyond the conference circuit, the industry saw major regulatory and corporate developments this week. California extended its ban on intoxicating hemp, the United Nations classified HHC as a Schedule II drug and a leaked federal memo revealed that marijuana is still considered a "controversial" topic requiring special approval in government publications.

On the corporate front, Blueberries Medical secured $730,000 in funding, Wana Brands expanded its THC beverage line and Tilray Brands TLRY announced a significant retail expansion for its Runner's High beer. Meanwhile, new financial reports from Cresco Labs CRLBF, Village Farms International VFF and others provided key insights into market trends.

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

Policy And Regulation

California Extends Intoxicating Hemp Ban

California Governor Gavin Newsom has extended the state’s ban on intoxicating hemp products for another 90 days. Initially issued as an emergency order last year, the ban was set to expire at the end of this month. The decision follows growing concerns over the rise of unregulated hemp-derived cannabinoids like delta-8 THC, which have been sold outside the state's licensed dispensary system. California's move is part of a broader national crackdown on these products, as regulators struggle to define the legal boundaries of hemp-derived intoxicants.

United Nations Classifies HHC As A Schedule II Drug

The United Nations has voted to classify hexahydrocannabinol (HHC), a synthetically derived cannabinoid often found in unregulated hemp products, as a Schedule II drug. The classification brings HHC under stricter international control, which could lead to further regulatory crackdowns worldwide. HHC, known for its intoxicating effects, has been increasingly found in vape cartridges, gummies, and other hemp-derived products that exploit legal loopholes.

Federal Memo Lists Marijuana As A ‘Controversial’ Topic

A leaked memo from the National Cancer Institute (NCI) reveals that marijuana remains categorized as a "controversial" topic requiring special approval before publication. The memo places cannabis alongside politically sensitive subjects like vaccines, abortion, and opioids. Reports suggest the policy aligns with priorities set by Health and Human Services Secretary Robert F. Kennedy Jr. and President Donald Trump, underscoring how federal cannabis policy continues to lag behind public sentiment and state-level legalization efforts.

Corporate And Market Developments

Blueberries Medical Raises $1 Million

Blueberries Medical Corp., a Latin American licensed producer of medicinal cannabis, has announced a non-brokered private placement of approximately 96 million common shares at CAD $0.011 per share, raising about CAD $1.05 million ($730,000). The funding will be used for operational expansion and general corporate purposes. Terraflos Inc., led by Blueberries' CEO and chairman Facundo Garreton, played a key role in the investment.

Wana Brands Expands THC Drink Line To Nine States

Wana Brands is expanding its line of hemp-derived THC-infused beverages to Total Wine & More stores in nine states, including Florida and North Carolina. The move marks a significant step in bringing cannabis beverages into mainstream retail channels, as hemp-derived THC products are legally sold outside of dispensaries under the 2018 Farm Bill. Wana Brands is owned by Canopy Growth's subsidiary, Canopy USA.

Pineapple Express Acquires Groovy Co. In Stock Trade Deal

Pineapple Express Cannabis Co. PNXP is set to acquire Groovy Company Inc. SANP in a stock trade deal. Under the agreement, Pineapple Express will receive 350 million shares of Groovy, while Groovy will receive 5 million shares of Pineapple. The deal underscores the trend of cannabis companies leveraging stock-based acquisitions to fuel growth amid challenging market conditions.

Tilray Brands Expands Non-Alcoholic Craft Beer Distribution

Tilray Brands TLRY announced a major retail expansion for its non-alcoholic craft beer brand, Runner's High Brewing. The beer will now be available at 4,500 new retail locations, including Publix, HEB, Harris Teeter and Lowes Foods. With this move, Tilray is positioning Runner's High as a go-to beverage for health-conscious consumers. The brand offers three varieties—Golden Wheat, Raspberry Wheat, and Dark Chocolate—and has been gaining traction among fitness enthusiasts.

Additionally, Tilray launched Tilray Craft in Germany, an extension of its medical cannabis portfolio. The brand will offer flower-based cannabis products with higher THC and terpene content, catering to patients seeking premium medical cannabis options. The first product under this line is Cannabisblüten THC 25 TAM, a sativa-leaning hybrid strain.

Earnings Reports

Cresco Labs Reports Mixed Q4 Results

Cresco Labs CRLBF reported fourth-quarter revenue of $175.91 million, surpassing estimates of $172.13 million but marking a decline from $188.24 million in the same quarter last year. The company posted an adjusted EBITDA of $42 million, with a margin of 24%. Gross margin fell from 51.1% to 47.8%, while operating profit dropped to $19.41 million.

CEO Charlie Bachtell highlighted the company's disciplined execution in 2024, focusing on profitability and free cash flow. Looking ahead to 2025, Cresco plans to strategically deploy capital to drive growth, with an emphasis on high-return investments.

Village Farms International Sees Revenue Growth But Faces Impairment Charges

Village Farms International VFF posted fourth-quarter sales of $82.55 million, an 11% year-over-year increase, beating analyst expectations of $79.87 million. However, the company faced a $10.5 million non-cash impairment charge related to non-flower cannabis inventory that failed to meet quality standards.

The company's Canadian cannabis segment saw sales increase by 10% to CA$48 million, while international medicinal sales grew by 127%. U.S. cannabis revenue fell slightly from $5.1 million to $4.6 million. CEO Michael DeGiglio expressed confidence in the company's momentum heading into 2025, citing an improved balance sheet and expansion efforts in Europe.

Ascend Wellness Posts Strong Q4 Performance

Ascend Wellness Holdings AAWH reported fourth-quarter revenue of $136 million, down 4% from the previous quarter. However, the company's adjusted EBITDA increased 20.4% quarter-over-quarter to $30.2 million, with an EBITDA margin of 22.2%.

A key highlight was Ascend's cost-cutting initiatives, which helped improve its balance sheet and drive cash flow. The company generated $30.1 million in free cash flow for the quarter and repurchased 11 million shares of Class A common stock, representing over 5% of its outstanding shares.

The Cannabist Company Cuts Costs Amid Revenue Decline

The Cannabist Company CBSTF reported fourth-quarter revenue of $96.1 million, a 16% decline from the previous quarter, partly due to the sale of assets in Florida and Virginia. However, the company managed to maintain a 35% gross margin and achieved $7 million in adjusted EBITDA.

CEO David Hart highlighted ongoing efforts to simplify operations, reduce overhead, and optimize retail and cultivation assets. The company recently secured an agreement to extend the maturity of its senior secured debt to 2028, providing financial flexibility as it prepares for adult-use sales in Delaware and expansion in key markets like Virginia and Ohio.

GrowGeneration Cuts Losses and Increases Proprietary Sales

GrowGeneration GRWG, a major retailer of hydroponic and gardening products, reported fourth-quarter sales of $37.4 million. The company recorded a net loss of $23.3 million, an improvement from a $27.3 million loss in the prior year.

A major focus for GrowGeneration has been expanding its proprietary brands, which accounted for 30.4% of cultivation and gardening revenue in Q4, up from 21.2% a year earlier. CEO Darren Lampert said the company's restructuring efforts are expected to reduce annual expenses by $12 million and drive long-term profitability.