Happy Friday, Benzinga Cannabis family. It's Maureen here with all the key updates to keep you in the loop. From cannabis stocks finally showing some life after a long slump to significant legal and market challenges popping up in places like Michigan and Israel—today’s news is packed with action.

We've got everything from Donald Trump’s (possible) involvement in cannabis banking reform to insurance companies refusing to cover medical marijuana, plus some big corporate moves by Tilray and Flora Growth. If you're a cannabis business owner, investor, or just a cannabis enthusiast, today’s newsletter is packed with must-know info. Let’s jump into it!

In today's issue:

• 🚀 Cannabis Stocks Soar: Is This The Real Deal?

• 📉 Tilray & Flora Growth Stock Moves

• ⚖️ Legal Hiccups: From Insurance to Tariffs

• 📉 Market Troubles: Struggles in Canada & Michigan

• 🧑‍⚕️ Healthcare Meets Cannabis: A New Chapter

• 🧪 Testing Woes: The Legal and Business Implicatio …

Why Cannabis Stocks Jumped By Double Digits And Why Analysts Say 'Don't Drink The Kool-Aid In One Gulp

This week has been a wild ride for cannabis stocks, finally showing signs of life after months of lackluster performance. AdvisorShares Pure U.S. Cannabis ETF (NYSE: MSOS), writes Benzinga’s Javier Hasse, led the charge, surging by about 12.5% since Monday and even reclaiming its 50-day moving average for the first time since the 2024 election. But hold your horses! Analysts are cautious, warning that this might just be a hype-driven head-fake rather than a solid upward trend.

What’s behind this sudden jump? Well, there’s new buzz around federal cannabis reform and possibly Donald Trump stepping into the cannabis conversation again. According to The Marijuana Herald, Trump has been reaching out to Congress, privately urging them to pass cannabis banking reform before the 2026 midterms. Could Trump be the unexpected cannabis advocate the industry needs? Who knows, but it’s certainly got people talking!

Tilray & Flora Growth Target Stock Consolidation As Values Continue Decline

In corporate moves, Tilray (NASDAQ: TLRY) and Flora Growth (NASDAQ: FLGC) are taking drastic measures to avoid delisting from the NASDAQ. Both companies are considering reverse stock splits—an increasingly common tool in the cannabis sector—to artificially inflate their stock prices. Tilray, which has seen a dramatic 81% drop in stock value over the past year, will vote on a 1-to-10 to 1-to-20 reverse stock split on June 10, 2025. The move is aimed at stabilizing their trading levels and attracting institutional investors, who have been hesitant due to federal cannabis restrictions.

Insurance Companies Are Not Required To Cover Medical Marijuana, Federal Judge Rules

A federal judge in New Mexico just dealt a blow to the cannabis industry, dismissing a lawsuit that sought to force insurers to cover medical marijuana. Judge Martha Vazquéz ruled that New Mexico law doesn’t require insurance companies to cover cannabis, and federal law preempts any such state requirement. The plaintiffs argued for medical marijuana coverage, but the judge wasn’t buying it. The decision doesn’t weigh in on cannabis’s medical benefits, but it sure puts a kink in the idea of widespread insurance coverage for marijuana.

Tariff Crisis: Israel’s Cannabis Industry Torn in Two as 165% Import Tax Hangs in the Balance

Over in Israel, things are heating up as a proposed 165% import tax on Canadian cannabis threatens to tear the industry apart. Many businesses and patients depend on Canadian imports, and the Ministry of Economy's push to implement the tax has sparked a major divide. While some local manufacturers back the tax, the majority of the cannabis community is scrambling to prevent it, fearing a massive price hike for patients. The battle is ongoing, and it’s set to have major financial implications in the short term.

Canadian Cannabis Sales Sank Again in February

It’s been a rough month for the Great White North, as Canadian cannabis sales fell 7.6% in February to C$404.7 million. This drop follows a volatile few months, with retail sales in January being revised upward to C$437.9 million. The February decline marks a concerning trend, especially after the impressive growth last year. With retail prices dropping and consumer demand slowing, things are looking a little rocky for Canadian cannabis companies heading into the spring.

Michigan’s Struggling Cannabis Industry Pushes Lawmakers for Urgent Reforms

In Michigan, the cannabis industry is facing a financial crunch. With prices plummeting (the cost of an ounce of flower has dropped by 77% since the market opened in 2019), cannabis businesses are in a panic. Business owners are pushing lawmakers to intervene before they face a wave of closures and consolidations. Key proposals include cracking down on the illicit market and imposing a moratorium on new cannabis grower licenses. If reforms aren’t made, we could see fewer options for consumers and a more consolidated market.

From Skeptic to Supporter: How One Nurse Sparked a Cannabis Healthcare Revolution

Meet Katherine Golden, RN, CEO, Founder, and Executive Director of LEAF411, a cannabis healthcare hotline. Katherine's journey from being anti-cannabis to a passionate advocate started after a family member was diagnosed with cancer. After discovering cannabis’s potential as a treatment, she was determined to make healthcare guidance accessible for everyone, regardless of their location or resources. With a team spread across five states, LEAF411 has been offering vital cannabis healthcare services through phone, chat, or email. It's a lifeline for those seeking cannabis guidance in an often-confusing healthcare world.

Testing Turmoil: The Legal and Business Implications of Inconsistent Cannabis Testing Standards

Cannabis businesses face a major headache with inconsistent testing standards across state lines. From pesticide residue to THC potency, each state has its own rules for what labs must test for and the acceptable limits. This lack of uniformity makes it tough for businesses operating in multiple states to stay compliant, and it opens the door to recalls and financial losses. The inconsistency is especially problematic for multistate operators trying to navigate a complex, patchwork regulatory environment. As the industry grows, the need for standardized federal regulations becomes ever more urgent.

That’s it for today, folks! As always, keep an eye on the market, stay informed, and remember—the cannabis industry is evolving fast. Until Monday!

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