Trump Gaetz It? Belushi Fights Back, +Q3 Earnings

Trump’s pro-cannabis pick for AG, Belushi’s challenge to Big Pharma, and Q3 earnings reveal who’s cashing in and who’s falling behind.

You're receiving this email because you're subscribed to Cannabis Daily from Benzinga. To manage your subscription, click the link at the bottom of this email.

Good morning, it’s Nicolás Rodríguez — and don’t worry, I know it’s Thursday, and we’re all pretending it’s basically Friday. But trust me, you’ll want to read this. Trump’s latest curveball? Matt Gaetz as Attorney General, and it’s got the cannabis crowd buzzing. Meanwhile, Jim Belushi roasts Big Pharma and the media. And, of course, Q3 earnings are here to remind us who’s crushing it and who’s just coasting. Let’s dive in before the weekend distractions hit.

President-elect Donald Trump has tapped Rep. Matt Gaetz (R-FL) as his pick for Attorney General, delighting cannabis advocates. Gaetz, known for pushing to end cannabis testing for military recruits, brings a reform-minded approach to the DOJ. However, his baggage (House Ethics investigations for sexual misconduct and drug use) adds a twist. Cannabis stocks rallied on the news, with MSOS ETF jumping nearly 10% as investors cheered the prospect of federal policy shifts.

Belushi Unfiltered: Slams Food, Pharma, And Media Over Cannabis Criticism

Artist and cannabis farmer Jim Belushi didn’t hold back at the last Benzinga Cannabis Capital Conference in Chicago, slamming the media, Big Pharma, and the food industries for profiting off health crises. 'Food companies and Big Pharma are hand in hand,' he claimed, adding, 'They push processed foods, then profit from diabetes treatments.'

Belushi singled out The New York Times for exaggerating risks like Cannabinoid Hyperemesis Syndrome (CHS), quipping, 'Tequila makes me throw up, too. Give me a break!' His fiery defense of cannabis resonated with the crowd.

Pain, Mindfulness, And The Real Deal

A study of 81,000 medical marijuana patients revealed chronic pain (32%), anxiety (27%), and PTSD (11%) as top health concerns driving cannabis use. Leafwell’s data shows most patients manage multiple conditions, underscoring cannabis' role in holistic healthcare. Meanwhile, a YouGov poll highlights women’s preferences: relaxation, mindfulness, and pain relief. Promotions and detailed product descriptions matter, but packaging design? Not so much. Brands take note.

Despite persistent headwinds, some cannabis companies showed resilience this quarter by slashing losses and expanding margins — a signal that strategic pivots and cost-cutting measures may finally pay off for the industry’s top players. Here’s the financial snapshot from Q3 that could hint at a shifting tide in cannabis profitability.

MediPharm Labs Corp. (OTC: MEDIF): Reported Q3 revenue of $7 million (CA$9.8 million), showing a 15% increase year-over-year. The company’s net loss narrowed to $2 million (CA$2.7 million), down from $3.1 million (CA$4.2 million) last year. Gross margin improved to 32%, driven by cost reductions. Adjusted EBITDA was a negative $743,000, better than the $2.4 million loss reported in 2023.

Jones Soda Co. (OTC: JSDA): Q3 revenue came in at $4.2 million, down from $4.5 million a year ago. The company’s net loss widened to $2.6 million, compared to a $900,000 loss in the prior year. Gross margin dropped significantly to 21.2%, affected by a distributor transition. Adjusted EBITDA was a loss of $2.2 million, versus a $900,000 loss last year.

NewLake Capital Partners Inc. (OTC: NLCP): Reported Q3 revenue of $12.6 million, marking a 9.3% year-over-year increase. Net income rose to $6.4 million, up from $6 million last year. Adjusted EBITDA wasn’t disclosed, but funds from operations (FFO) increased 6.5% to $10.3 million.

Charlotte’s Web Holdings Inc. (OTC: CWBHF): Q3 revenue was $12.6 million, down from $14.3 million in the same quarter last year. The net loss narrowed to $5.8 million from $15.2 million. Gross profit was $6.7 million, with a 53% gross margin. Adjusted EBITDA loss improved to $3.9 million, from a $6 million loss in 2023.

Blüm Holdings Inc. (OTC: BLMH): Posted Q3 revenue of $4.36 million, a 182% increase from $1.55 million in the previous year. Despite higher revenue, net loss grew to $3.74 million, up from $3.36 million last year. Gross profit increased to $2.45 million, with a 56.1% gross margin. Adjusted EBITDA was not provided, but Blüm reported operating expenses decreased due to better operational practices.

LEEF Brands Inc. (OTC: LEEEF): Reported Q3 revenue of $6.76 million, up from $5.67 million last year. Net loss widened to $3.19 million, compared to a $1.99 million loss previously. Gross profit was $1.5 million, reflecting a 22% gross margin, down from 33% due to pricing pressures. Adjusted EBITDA recorded a loss of $1.79 million, compared to a gain of $224,495 in the prior year.

Stories In The Spotlight:

Our Writer 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.

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.

Real Estate Weekly: Ready to elevate your real estate game? This weekly newsletter provides actionable insights whether you are investing in REITs, owning property, or delving into the fast-growing world of fractional real estate. Subscribe here.

Advisor: Tailor-made for Financial Advisors, this weekly newsletter has industry-specific insights, analysis, and news. Subscribe here.