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It’s Monday again, and we’re here to shake off that weekend fog with your daily cup of cannabis news! Nicolás Rodríguez and Patricio Liddle here, bringing you the latest. From Kentucky's massive rush for medical licenses to Michigan's oversupply crisis, we’ve got your back on the top stories this week. Plus, a closer look at MSOs facing a “tsunami of debt” and how they’re gearing up for 2026. Oh, and DeSantis is at it again with his anti-cannabis ads—spoiler alert: the polls aren’t on his side.

Bearish Michigan & Bullish Kentucky

Michigan’s cannabis market is feeling the pinch as oversupply and price drops continue to challenge the industry. Sales in the state fell by 10% in September, with recreational flower prices hitting record lows, dipping below $80 an ounce. This price decline reflects the growing competition and saturation in the market, leaving both cultivators and retailers grappling with shrinking profit margins.

With Ohio’s adult-use market just around the corner, Michigan’s hurdles may not be getting any smaller—time to buckle up and watch closely to see how the industry adjusts to these pressures in the coming months.

Down in Kentucky, excitement is building as the state prepares to launch its medical cannabis program in January 2025. Already, nearly 5,000 applicants have registered, signaling strong demand for the new market. With Kentucky’s program taking shape, it represents a new frontier for cannabis investors looking to tap into an underserved market in a state with strict cannabis laws.

With $27.7 million collected in non-refundable application fees, we could say Kentucky is cashing in on cannabis long before the first dispensary opens its doors.

PRESENTED BY CANNABIS CAPITAL CONFERENCE

Which MSOs Are Ready To Weather The Storm

Last week, we pointed to a “tsunami of debt” facing the cannabis sector in 2026. But according to Viridian Capital Advisors, the situation may not be as dire as some fear.

Their latest analysis reveals that while over $2 billion in debt is set to mature in 2026, refinancing activity is strong. Companies like Green Thumb (OTC: GTBIF), Ascend (OTC: AAWH), and TerrAscend (OTC: TSNDF), having recently refinanced, are expected to manage their debt loads effectively.

However, AYR Wellness (OTC: AYRWF), Cannabist (OTC: CCHWF), and Jushi (OTC: JUSHF) face tougher challenges, with fixed charge coverage ratios as low as 1.45x for AYR. Viridian notes AYR’s situation could improve if Florida legalizes adult-use cannabis, boosting revenue.

The key takeaway for investors? Despite challenges, companies still have time to secure refinancing, and market perception is critical to easing 2026 debt concerns.

Ron, We Get It, But…

The polls say otherwise…. Ron DeSantis is at it again, using yet another state agency to fund anti-marijuana ads, this time dragging in the Florida Department of Education. The latest gem? A sheriff claims that marijuana is linked to domestic violence. A USA Today/Suffolk University poll shows 63% of Floridians support Amendment 3, which would legalize recreational cannabis this November. Meanwhile, another poll from Florida Atlantic University shows 56% support. Despite DeSantis’ scare tactics, voter support for cannabis legalization is holding strong.

Fool Around And Find Out

While U.S. cannabis legalization has opened doors, it has also provided regulators and businesses ample opportunity to, as one might eloquently put it, 'Mess Around and Find Out.' These unintended consequences have led to facepalm-worthy regulatory missteps that have shaped and tangled the industry.

1. 2018 Farm Bill's THC Loophole:

This bill legalized hemp but accidentally unleashed delta-8 THC and other synthetics into an unregulated mess. The outcome? Confusion, state-by-state rules, and a public policy nightmare.

2. Washington D.C.'s Gift Economy:

Cannabis is legal in D.C., but Congress blocked regulated sales. Now, shops "gift" weed with random products. No taxes, no market—just chaos.

3. California’s Prop 64 Misstep:

Prop 64 aimed to squash the black market, but high taxes and complex regulations only made it thrive. Today, illicit operators are outpacing the legal market.

4. New York’s Regulatory Chaos:

New York’s social equity-focused cannabis program fell apart. With 2,000 unlicensed shops versus only 120 legal dispensaries, it’s no wonder the Office of Cannabis Management’s leadership got the boot.

5. Minnesota’s Licensing Limbo:

Minnesota legalized cannabis in 2023 but won’t issue licenses until 2024. This gap allowed hemp stores to exploit loopholes, leading to the confiscation of over $1.4 million in illegal products.

In the grand experiment of cannabis legalization, these regulatory missteps serve as a cautionary tale, illustrating how even well-intentioned policies can yield unintended—and lasting—consequences. One might say, it’s a classic case of 'Mess Around and Find Out' on a legislative scale.

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Stories In The Spotlight:

• Snoop Dogg Lights Up The Weather With A Blazing Forecast Of Stoner Cities And High Temps On TODAY Show With Al Roker

• Australian Cannabis Producer Little Green Pharma Reports Record Revenue, 80% Increase In European Sales QoQ

• How Does Cannabis Legalization Affect Organized Crime? New Research Sheds Light

• Canadian Cannabis Edibles Producer City View Green To Raise $730K Via Private Placement

Our Writers Today

Nicolás holds a B.A. in International Relations, an M.A. in International Affairs, and an M.Phil in Public Policy. He is a doctoral student in Public and Urban Policy at The New School in New York City. After working for the United Nations in 2014, Nico pivoted his research to studying the relationship between the cannabis industry and economic development.

Patricio is a development economist with extensive experience in IT, finance, and banking. He writes about the economic and social opportunities obscured by over half a century of failed drug prohibition. Beyond his professional expertise, Pato is a committed advocate for social change, passionately working to promote harm reduction and reform drug policies.

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