Debt Storm Hits Cannabis As MSOs Struggle, DEA’s Beyond-Absurd Remarks, Joint-Rolling Goes Pro

Hey, Benzinga Cannabis community! It’s Maureen Meehan here, checking in with your favorite plant-powered rundown. Today’s newsletter is full of hot headlines, from a $3-billion cannabis debt storm brewing to a mind-blowing joint-rolling tournament straight out of a stoner Olympics.

We’ve also got a federal psychosis warning (yep, the DEA’s at it again), game-changing state revenue stats and real families fighting the proposed THC ban in Texas.

Buckle up—we’re rolling through the biggest stories in cannabis today.

In today's issue:

• 💸 Business & Markets

• 🏛️ Policy & Government

• 💰 State Impact

• 🌱 Culture & Innovation

🧨 Marijuana Industry Faces $3 Billion Debt Bomb

Medicine Man Technologies (OTCMKTS: SHWZ)—doing business as Schwazze—is under serious financial pressure, with Altmore Capital suing over what it claims are “creative and desperate” moves to dodge repayment. Think asset shuffling and location closures—plus a rogue pre-roll machine. The lender says Schwazze is “insolvent,” holding nearly $200 million in liabilities.

This could be just the beginning as cannabis debt across the U.S. nears $3 billion and lenders tighten the screws. “This seems like a new development in cannabis restructuring,” said Frank Colombo of Viridian Capital Advisors.

📉 MSO Stocks Sink as Debt Fears Grow

The Global Cannabis Stock Index is down 21.4% in 2025. Ouch.

AdvisorShares Pure US Cannabis ETF (NYSE: MSOS)? It has tanked 33.9%.

The five largest MSOs—Green Thumb Industries, Trulieve, Curaleaf, and others—aren’t in crisis just yet, but they’re packing enough net debt to cause worry. Capital is scarce, and 280E isn’t going anywhere soon.

🧾 Safe Harbor Links Up With Bennett Thrasher

Safe Harbor Financial (NASDAQ: SHFS) is teaming up with Bennett Thrasher to deliver top-tier financial services to cannabis companies, such as audit support, tax prep (yes, 280E again), and CFO-level advice.

“Whether a cannabis business is launching, expanding, or preparing for a capital event, financial clarity is essential,” said Terrance Mendez, Safe Harbor CEO.

🚫 DEA Suggests Weed Is Riskier Than Meth?

The DEA is circulating a claim that marijuana might pose a greater psychosis risk than methamphetamine. Yes, really…as absurd as that sounds.

“Cannabis raises the risk of psychotic disorders more than other drugs, even methamphetamines,” said David Rettew, an Oregon psychiatrist quoted in the DEA-blasted article. While the science remains far from settled, the headline-grabbing comparison is raising eyebrows in the industry. How could it not?

🛑 Texas Families Fighting The Governor’s THC Ban

With Senate Bill 3 on Governor Abbott’s desk, parents like Stephanie Fokas are pleading for a veto. The bill would ban full-spectrum CBD products with even trace THC.

Fokas, who credits hemp-derived CBD with helping her son’s epilepsy, said, “I’m not going to put him in the [Texas Compassionate Use Program] because that’s just not fair… There is not a problem with what he is taking.”

💵 States Pull In $25 Billion From Weed Taxes

Since launching adult-use markets in 2014, states like Colorado and Washington have generated a combined $24.7 billion in cannabis tax revenue. 2024 alone saw a record $4.4 billion.

Where’s it all going? Everything from Medicaid and schools to veterans’ services and addiction treatment.

Four states pulled in over $500 million, and one crossed the $1 billion mark. Not bad for a plant, huh?

🎯 Speed-Rolling Hits The Big Leagues

Forget your typical cannabis competition…Rolling Derby is here to crown the fastest joint-roller in the world.

Competitors 21+ can submit videos by June 30 showing off their one-gram, nug-to-joint rolling skills. The top 16 will roll it out in a championship final.

Sponsored by RAW Rolling Papers, the event will stream globally and hit major California venues. Get your lighters ready.

🍄 MariMed Launches Cannabis + Mushroom Wellness Line

MariMed Inc. (CSE: MRMD) (OTCQX: MRMD) has launched MycroDose by Nature’s Heritage—a plant-based pill that blends full-spectrum cannabis with functional mushrooms.

Formulated for mental clarity, relaxation, focus, and wellness, the line is now available in Massachusetts dispensaries.

🌿That’s a wrap for today, friends. Whether it’s lawsuits, legislative curveballs, mushroom-fueled wellness trends or rolling joints against the clock—we’ve covered all the highs and lows (and pre-rolls) the cannabis world has to offer today. As always, we’ll be here tomorrow with the next batch of stories from this wild, weird, wonderful industry we all love.

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