Fungus-Tainted Weed, THC Drinks Take Over Booze, Judge Jeanine’s New Weed Role

Plus, the latest in cannabis news.

May 12, 2025

Hey Benzinga Cannabis friends, it’s Maureen Meehan here to start your week off with all things green, legal, and occasionally weird. It’s been a day in the cannabis world — from a scary recall in Arizona to a vape device that just got EU-certified and a possible Universal Basic Income project funded entirely by weed taxes. Yeah, that’s a thing now. We’re also talking about falling alcohol use (hello THC drinks), regulatory drama in New York, and Trump making a classic Trump move on the federal cannabis front.

Let’s dive in — because cannabis never takes a day off and neither do we (well… almost never).

⚠️ Public Safety & Regulation

Arizona’s Health Department issued a voluntary recall on marijuana sold under the name Odo, Batch PHX1164-ODO, after possible contamination with aspergillus. This gnarly fungus can cause serious infections, especially in folks with weakened immune systems.

“An Arizona marijuana establishment is voluntarily recalling specific products due to possible contamination with Aspergillus,” ADHS said. The CDC warns aspergillus exposure can lead to aspergillosis, which messes with your lungs and bloodstream. So yeah… not a mild issue.

Let’s talk about tianeptine, a.k.a. “gas station heroin.” It’s being sold in sketchy spots nationwide under names like Tianaa, Zaza, Neptune’s Fix and TD Red — and the FDA is not having it.

“I want the public to be especially aware of this dangerous product and the serious and continuing risk it poses to America's youth,” said FDA Commissioner Dr. Martin A. Makary.

Why so serious? Because it’s unapproved, highly addictive, and can cause confusion, coma, or worse. And unlike cannabis, this stuff is actually killing people.

🌿 Industry & Innovation

Curaleaf International (OTC: CURLF) and Jupiter Research (Cboe: TILT) have officially raised the bar. They just scored EU medical device certification for Europe’s first-ever handheld liquid cannabis inhalation device.

Curaleaf Chair Boris Jordan said it’s “a signal that medical cannabis innovation is moving into the mainstream of global healthcare.”

We’re talking a magnetic snap-in cartridge, rechargeable battery, and EU-level safety creds. It’s sleek, it’s legit, and it’s coming to a continent near you.

Organigram Holdings Inc. (NASDAQ: OGI) came out strong with Q2 net sales of $45.7 million, a 74% leap from last year. Big props to the Motif acquisition and international sales hustle.

CEO Beena Goldenberg is fired up: “We expect this momentum to continue as we further strengthen our leadership in Canada and head into the seasonally stronger back half of the year.”

That’s not just puffery — adjusted gross margins also climbed to 33%. Somebody light a celebratory pre-roll for them.

🍹 Culture & Consumption

Bye-bye booze, hello THC. Americans are cutting back on alcohol and leaning into cannabis beverages, thanks to a 2018 Farm Bill loophole that legalized hemp with ≤0.3% delta-9 THC.

These drinks are now everywhere — no dispensary card needed — but with states scrambling to regulate them, it’s a wild, fizzy frontier.

More people are choosing to go “California sober,” swapping alcohol for cannabis and feeling better about it. Cheers to that (with a microdose seltzer, of course).

🏛️ Politics & Policy

Because, of course, he did — President Trump has replaced a prosecutor who threatened a D.C. dispensary with none other than Judge Jeanine Pirro, who sits on the board of HeavenlyRx, a CBD company.

She’s not exactly waving the legalization flag, but back in 2019 Pirro said: “My interest in CBD stems from a curiosity after hearing people say how much they benefited from CBD.”

Meanwhile, her predecessor was literally warning dispensaries about federal prosecution. So yeah, this feels like a shift.

Albuquerque, New Mexico just made history. They’re using recreational weed tax revenues to fund Universal Basic Income for low-income residents.

The first group of 80 households will get $750/month for three years, funded by a projected $4.02 million/year in cannabis taxes. Half the funds go to income support, the other half to youth-focused addiction and wellness programs.

Councilor Klarissa Peña called it a step toward “justice where there was injustice.” Powerful stuff.

Smell that? It might not matter soon — at least not to Illinois cops. A new bill aims to make it illegal for police to use the smell of weed as probable cause for a search.

“This is about consistency,” said Rep. Curtis Tarver (D-Chicago), pointing to conflicting court rulings. The bill’s passed the Senate and now heads to the House.

Not everyone’s a fan — Officer Dennis Tipsword says the smell alone doesn’t indicate how much weed’s present. But supporters say it’s time the law caught up with reality.

🇨🇦 Canada & Global

Turns out legalization is working — at least in Canada. A new study says the country’s legal cannabis market has now displaced three-quarters of illicit spending.

Since adult-use marijuana was legalized in 2018, legal sales have climbed steadily — with no signs of slowing. And the U.S. isn’t far behind: in legal states, 52% of users say they shop at licensed stores, while only 6% still go through a dealer.

Score one for regulated access, safety, and that sweet legal flower.

🏢 New York Cannabis Regulation Under Fire Amid Budget Cuts, Product Investigations

Oh, New York… The cannabis chaos continues.

Tremaine Wright, chair of the state’s Cannabis Control Board, just had her entire $229,000 salary eliminated in the latest state budget. She’s still staying on, saying she accepted the role before the salary was ever promised.

Meanwhile, regulators are investigating Stiiizy and Mfused for allegedly using unlicensed out-of-state cannabis in their vape products — sales of the affected goods (worth about $10 million) have been halted.

That’s a whole lot of smoke and not the good kind.

Until Tomorrow…

That’s a wrap for today’s wild ride through the world of weed. From policy shakeups to product innovation, we’re seeing this industry stretch and grow in every direction. Stay tuned, stay informed, and — as always — stay chill.

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