- Benzinga Cannabis Daily
- Posts
- DEA's Anti-Marijuana Memes, Whoopi Goldberg’s Tea & The Case for Safer Cannabis: Legalize It!
DEA's Anti-Marijuana Memes, Whoopi Goldberg’s Tea & The Case for Safer Cannabis: Legalize It!
Plus, the latest in cannabis news.
Hey, Benzinga Cannabis community. Maureen Meehan here, bringing you today’s cannabis news roundup. From legal battles over illegal dispensaries to international moves, the cannabis industry is buzzing with developments. In today’s edition, we’re diving into the latest sales figures from Michigan, regulatory changes in Alabama, and even some drama with the DEA. Let’s get to it!
In today's issue:
🏛 Politics & Regulation
🚨 Trump’s DEA Pick Refuses To Detail Marijuana Rescheduling Stance In Response To Senator’s Questions
Terrance Cole, President Trump’s nominee to lead the DEA, is playing it safe on marijuana policy. When asked about the potential rescheduling of cannabis or federal enforcement in legal states, Cole avoided giving a clear answer. It looks like this debate is far from over.
New York City’s battle with illegal cannabis dispensaries has hit a new snag. With court orders sealing over 1,400 unlicensed weed shops set to expire, there’s a real risk of these rogue stores reopening. Mayor Eric Adams reassures the public that the authorities will continue to monitor the situation, but this is a growing concern for licensed dispensaries in the city.
In Alabama, Governor Kay Ivey has signed a new bill into law, regulating hemp and THC products under the state’s Alcoholic Beverage Control Board. This move bans hemp sales at gas stations and imposes new dosage restrictions on THC edibles. It’s a step forward in the state’s quest to tighten control over hemp products and eliminate some unregulated products.
California’s cannabis industry faces a tough blow as Gov. Gavin Newsom's revised budget confirms the excise tax will rise from 15% to 19%, effective July 1. This tax increase, triggered by Assembly Bill 195 in 2022, moves forward despite calls from industry leaders to delay it amid market contraction and business closures.
Amy O’Gorman Jenkins, executive director of the California Cannabis Operators Association (CaCOA), warned the increase could be disastrous:
“California’s legal cannabis industry cannot withstand a more than 25% tax increase when sales have already declined by 19% and thousands of businesses have closed their doors.”
This tax hike stems from a 2022 policy change that shifted revenue collection downstream to retail. The California Department of Tax and Fee Administration (CDTFA) confirmed the 19% rate will begin July 1, 2025.
💸 Markets & Business
Michigan’s recreational cannabis market saw a dip in sales for April, despite the 4/20 holiday boost. Sales fell from $276 million in March to $270 million in April. While the volume of cannabis purchased went up, lower prices continue to drive down total sales. This is a tough reality for cannabis businesses in Michigan as they battle price declines and illegal market competition.
IM Cannabis Corp. (NASDAQ: IMCC) has announced a major financial turnaround in its first-quarter earnings. The company reported a 94% increase in gross profit and a 129% jump in EBITDA. Along with this, they’re looking to raise up to C$2.5 million through a debenture offering. While the company’s recovery shows promising signs, there are still challenges with debt and operational efficiency to navigate.
🧪 Industry Developments & Product Launches
Curaleaf (OTC: CURLF) is expanding globally, bringing its medical cannabis products to Australia, one of the fastest-growing cannabis markets. The company is launching Curaleaf-branded products, including precision-dosed inhalation formats and popular strains, as part of its push to meet the increasing demand in the Australian medical market.
Whoopi Goldberg is stepping into the cannabis beverage space with her new Whoop-Tea. This hemp-derived drink is designed to help people unwind without the hangover. She’ll be launching it at the Cannabis Means Business event in New York this June, where she’ll also discuss the rapidly expanding cannabis beverage market. It’s safe to say Whoopi’s keeping things interesting in the wellness side of cannabis.
🧠 Misinformation & Public Opinion
The DEA has partnered with an anti-marijuana group for a controversial campaign. The “Just Say Know” initiative encourages people to share memes that claim cannabis use can cause everything from depression to reduced sperm count. These claims are based on research that has been widely contested, raising serious questions about the DEA’s approach to cannabis education.
Paul Armentano of NORML has penned an op-ed arguing that the way to safer cannabis isn’t through sensational headlines about fentanyl-laced weed, but through regulation and legalization. He advocates for cannabis to be legally produced and sold in regulated, licensed stores, ensuring the products are safe and lab-tested for quality and potency. It’s time to take cannabis out of the shadows and put it in the hands of legitimate, regulated businesses.
That’s all for today, folks! Stay tuned for more updates, and remember: the cannabis world moves fast, but we’ve got you covered. Catch you tomorrow for another round of cannabis news!
BEFORE YOU GO
Were you forwarded this email? Click here to subscribe.
And be sure to check out our other newsletters:
Ring The Bell: Created for market enthusiasts by market enthusiasts, this twice-daily newsletter delivers top stories, fast movers, and hot trade ideas straight to your inbox. Subscribe here.
Future Finance: Where fintech, crypto, and the future of finance collide. Future Finance is a perfect lunch read packed with quick bites for industry enthusiasts. Subscribe here.
Advisor: Tailor-made for Financial Advisors, this weekly newsletter has industry-specific insights, analysis, and news. Subscribe here.
Tech Trends: Get the inside scoop on AI, the hottest gadgets, and mind-blowing tech trends. Subscribe here.