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Tilray Brands Reports Quarterly Financial Results, Confirms No Tariff Impacts

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  • Generated $193 million in constant currency in the third quarter; strategic initiatives and SKU rationalization impacted revenue by $13 million
  • Tilray Beverage expands U.S. distribution of hemp-derived THC drinks across 10 states, increases Project 420 cost savings plan to $33 million
  • Tilray Cannabis increased gross margins by 800 basis points (bps), remains the leader in Canada by sales performance, and generates strong sales growth in Germany
  • Strengthens balance sheet with convertible note reduction of $58 million and total debt reduction of $71 million, $248 million available in cash and marketable securities

[PRESS RELEASE] – NEW YORK and LEAMINGTON, Ontario, April 8, 2025 – Tilray Brands Inc., a global lifestyle and consumer packaged goods company at the forefront of beverage, cannabis and wellness industries, reported financial results for its third quarter that ended Feb. 28, 2025. All financial information in this press release is reported in U.S. dollars unless otherwise indicated.

In response to the recently announced tariffs on international trade, Tilray analyzed the potential implications on its business. The analysis concluded that these tariffs should not impact sales. In the United States, Tilray’s American beverage brands are solely manufactured and distributed within the U.S. market. In Canada, Tilray’s cannabis brands are produced domestically for Canadian consumers. In Europe, Tilray manufactures medical cannabis brands and products for distribution across Europe and Australia. Regarding Tilray’s wellness business, Manitoba Harvest is currently exempt from the new tariffs.

“Tilray Brands is shaping the future of consumer markets with a robust global infrastructure spanning the beverage, cannabis and wellness industries,” Tilray Brands Chairman and CEO Irwin D. Simon said. “We are meeting the needs of today’s consumers while preparing for the demands of tomorrow. In the third quarter, we prioritized sales quality and revenue, protected margins, reduced debt, and improved our capital structure. With a strong balance sheet and a clear vision for the future, Tilray is well-positioned to capitalize on emerging opportunities and ensure long-term success.

“We see opportunities in the alcohol, cannabis and wellness industries and believe these sectors are here to stay. Tilray is relentlessly focused on building strong brands and developing innovative products to seize growth opportunities across all our businesses. At Tilray, we are laser-focused on building a sustainable global business platform by emphasizing profitable sales growth, improving profit margins and cash flow generation, and maintaining a solid balance sheet to navigate market challenges and capitalize on strategic opportunities. In Q3, we delivered our highest cannabis gross margins in almost two years, and as of today, our net debt is now less than 1x EBITDA on a trailing 12-month basis. We will not seek sales growth merely for the sake of sales if it does not add to the bottom line and benefit our shareholders.”

Strategic Growth Initiatives  Third Quarter Fiscal Year 2025

Tilray Beverage Project 420: Tilray Beverage completed $20.6 million of an expanded Project 420 cost-savings plan of $33 million. Project 420 aims to reduce costs to improve efficiency and profitability by rationalizing SKUs, geographies and distribution and is expected to be completed in the third quarter of fiscal 2026.

Hemp-Derived THC Drinks in the U.S: Tilray Brands is strategically positioned to utilize the expertise of its hemp wellness and cannabis businesses to responsibly formulate beverages infused with 5 milligrams and 10 milligrams of hemp-derived THC. During the fiscal year to date, Tilray generated $1.4 million in revenue from hemp-derived THC beverage sales and expanded the distribution of these drinks across more than 1,000 points of distribution in 10 states including Florida, Alabama, Georgia, North Carolina, South Carolina, Tennessee, Louisiana, and New Jersey, as well as through online direct-to-consumer channels.

In addition to our existing mocktail and seltzer brands Happy Flower, Fizzy Jane, and Herb & Bloom, the company is pleased to introduce 420 Fizz, a low-calorie soda beverage infused with hemp-derived THC. Tilray also leverages its established national beverage distribution network, which spans independent retailers, convenience stores and package stores, including multistate retailers such as Total Wine and ABC, which have expressed strong interest in this category and new growth opportunity.

Tilray Cannabis Profitability Initiatives: Tilray’s Cannabis segment is focused on profitability and margin protection. In the third fiscal quarter, Tilray Canada redirected inventories to international cannabis markets to capitalize on higher margins expected in these markets in the upcoming fourth fiscal quarter. Tilray’s global cannabis supply chain is in Phase II of its accelerated growth plan, and the cultivation footprint is expanding to meet increasing demand in both Canadian and international markets. The Cannabis segment is concentrating on preserving gross margins and maintaining higher average selling prices in categories such as vapes and infused pre-rolls, which have experienced significant price compression and are margin dilutive. Growth in these categories is expected to resume later in the upcoming fourth fiscal quarter due to capital expenditures improving our operational efficiencies.

Debt Reduction; $248 Million Cash and Marketable Securities: As of April 8, 2025, Tilray reduced its outstanding total debt by $71 million with a convertible note reduction of $58 million, strengthening the balance sheet. As a result, net debt to trailing 12 months EBITDA is less than 1x. The company’s $248 million cash balance, including marketable securities, provides Tilray with great flexibility for strategic opportunities.

AI and Cryptocurrency Business Strategy: Tilray Brands is dedicated to leveraging advanced technologies to align with our shareholder interests, the consumer of tomorrow, enhancing efficiency and driving growth. The company is implementing AI across its global operations to enhance its expertise, optimize processes, achieve substantial improvements and advance its business objectives. In the cultivation sector, Tilray is utilizing advanced horticulture automation technology throughout its global greenhouse operations. By integrating this technology with AI-driven data insights, the company can manage greenhouse conditions in real time, leading to more efficient operations, increased output, superior quality and reduced costs for resources such as labor, water and energy. Additionally, Tilray plans to accept cryptocurrency as a payment method within the company’s online operations. The company is also exploring strategic initiatives related to cryptocurrency that align with our business goals.

Financial Highlights – Third Quarter Fiscal Year 2025

  • Net revenue of $185.8 million in the third quarter compared to $188.3 million in the prior year quarter. On a constant currency basis, net revenue in the current third quarter increased to approximately $193 million. The prior year quarter included revenue of $6 million of now-discontinued SKUs. Strategic initiatives and SKU rationalization impacted revenue by $13.2 million in the current year quarter.
  • Gross profit increased by 5% to $52 million in the third quarter compared to $49.4 million in the prior year’s quarter. Gross margin increased 200 bps to 28% in the third quarter compared to 26% in the prior year’s quarter.
  • Net loss was $(793.5) million in the third quarter, due to approximately $700 million of noncash impairment as a result of macroeconomic conditions and declines in market capitalization, foreign exchange loss, amortization, changes in fair value of convertible notes receivable and stock-based compensation as well as nonrecurring transaction and restructuring charges.
  • Adjusted net loss was $(2.9) million in the third quarter compared to an adjusted net income of $0.9 million in the prior year quarter.
  • Adjusted EPS remained at $0 in both the third quarter and the comparative period.
  • Adjusted EBITDA in the third quarter was $9 million compared to $10.2 million in the prior year quarter due to the beverage segment’s SKU rationalization impact of $1 million and $0.6 million related to the prioritization of international cannabis markets.
  • Beverage alcohol net revenue increased to $55.9 million in the third quarter, up from $54.7 million in the prior year’s quarter, despite a $6 million impact from the strategic SKU rationalization.
    • The beverage alcohol gross margin increased to 36% in the third quarter compared to 34% in the prior year’s quarter.
  • Cannabis net revenue was $54.3 million in the third quarter compared to $63.4 million in the prior year’s quarter. On a constant currency basis, cannabis net revenue was $57.5 million. The strategic initiative to redirect product from Canada to international markets resulted in a timing impact on revenue of $3.2 million. Additionally, a strategic decision to pause the company’s presence in margin dilutive categories, such as vapes and infused pre-rolls, led to a revenue decrease of $4 million but prevented a potential loss exceeding $3 million.
    • Cannabis gross margin increased to 41% in the third quarter compared to 33% in the prior year quarter, resulting from the company’s strategic prioritization of the international business and the reduction in its exposure to margin dilutive categories.
  • Distribution net revenue increased 8% to $61.5 million in the third quarter compared to $56.8 million in the prior year’s quarter. On a constant currency basis, distribution net revenue was up 15% to $65.1 million.
    • The distribution gross margin was 9% in the third quarter compared to 10% in the prior year’s quarter.
  • Wellness net revenue increased 5% to $14.1 million and 8% on a constant currency basis to $14.5 million in the third quarter compared to $13.4 million in the prior year’s quarter.
    • The wellness gross margin increased to 32% in the third quarter compared to 30% in the prior year’s quarter.

Company’s Fiscal Year 2025 Guidance

The Company revises fiscal year 2025 guidance for net revenue to $850 million to $900 million. Adjustments for constant currency and the impacts of the strategic initiatives and SKU rationalization, which total approximately $50 million, would have resulted in an expected net revenue of $900 million to $950 million.



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Kentucky Medical Marijuana Dispensaries Should Be Stocked With Products Ready For Sale By Next Month, Top State Official Says

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Kentucky’s top medical marijuana regulator said he expects that dispensary shelves will be stocked with products ready for sale to patients by next month.

Two of the state’s 16 medical cannabis cultivators are now operational, according to Cannon Armstrong, executive director of Kentucky’s Office of Medical Cannabis (OMC).

“If everything goes according to plan for them, I think that they’ll have medical cannabis that will be ready to harvest and be put on the shelf, you know, by October,” he told Spectrum News 1. “So we’re moving and we’re finally getting to a point where we’re, these patients are going to receive this medication sooner than later.”

Armstrong predicted that the first sales will likely occur at a dispensary in Beaver Dam called The Post.

“I think you’re going to see the first products out there based upon just how it’s shaken out,” he said. “You know, someone may step up their timeline and may get out there before that or get product from there and place it somewhere else in the state.”

As of now, OMC has approved more than 19,000 patients certifications, Armstrong said.

He added that medical cannabis supplies should be relatively scarce as the market first launches, and said that as a result initial prices will be higher than they eventually will be.

Earlier this month, Gov. Andy Beshear (D) said he thought medical marijuana would be available to Kentucky patients by the end of 2025.

“The medical marijuana program is moving forward,” he said at a press briefing at the time.

“I think most of our dispensaries now have their home address [and] are set about where they’re going to be, but [for] some of the inspections that have to happen in dispensaries, they have to have product that’s there,” he said. “So I do believe they’ll be operating before the end of the year.”

Those comments came roughly a month after the governor announced that the state’s first medical cannabis dispensary has officially been approved for operations, calling it “another step forward as we work to ensure Kentuckians with serious medical conditions have access to the medicine they need and deserve.

He previously touted an earlier “milestone” in the state’s forthcoming medical marijuana program, with a licensed cultivator producing “the first medical cannabis inventory in Kentucky history.”

Beshear’s office has said that other cannabis licensees, including processors and testing labs, are expected to become operational soon.

In July, Beshear sent a letter to President Donald Trump, urging him to reject congressional spending bill provisions that would prevent the Justice Department from rescheduling marijuana.

In the letter to the president, he emphasized that a pending proposal to move cannabis from Schedule I to Schedule III under the Controlled Substances Act (CSA) is something “you supported in your presidential campaign.”

“That process should be allowed to play out. Americans deserve leadership that won’t move the goalposts on them in the middle of the game,” Beshear said, noting that he was among the tens of thousands who submitted public comments in favor of the reform after it was initiated under the Biden administration, “demonstrating broad public interest in rescheduling.”

“I joined that effort because this is about helping people. Rescheduling would provide suffering patients the relief they need,” the governor said. “It would ensure communities are safer—because legal medical products reduce the illicit market. It would provide new, meaningful research on health benefits.”

Beshear also mentioned a letter to DEA he signed onto last year urging rescheduling, “because the jury is no longer out on marijuana. It has medical benefits.”

Back on the state level, the governor recently said he acknowledges that “it’s taken longer than we would have liked” to stand up the industry since he signed medical marijuana legalization into law in 2023.

In recognition of that delayed implementation, he recently signed an executive order to waive renewal fees for patients who get their cards this year so that they don’t get charged again before retailers open. And another order he signed providing protections for qualified patients who obtain medical marijuana outside of Kentucky “will stay in place.”

Beshear separately announced in May that the state has launched a new online directory that lets people see where medical cannabis dispensaries will be opening near them.

He emphasized that the state has been working to deliver access to patients “at the earliest possible date,” and that involved expediting the licensing process. The governor in January also ceremonially awarded the commonwealth’s first medical marijuana cards.


Marijuana Moment is tracking hundreds of cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.


Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.

Meanwhile, the governor sent a letter to Kentucky’s congressional delegation in January, “urging them to take decisive action to protect the constitutional rights of our law abiding medical cannabis patients” by repealing the federal ban on gun possession by people who use marijuana.

That came after bipartisan Kentucky senators filed legislation that similarly called on the state’s federal representatives to take corrective action, which Beshear said he supports but would like to see even more sweeping change on the federal level.

The federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) warned Kentucky residents late last year that, if they choose to participate in the state’s medical marijuana program, they will be prohibited from buying or possessing firearms under federal law.

As far as the implementation of the state’s medical cannabis law goes, Beshear said in his State of the Commonwealth address in January that patients will have access to cannabis sometime “this year.” He also later shared tips for patients to find a doctor and get registered to participate in the cannabis program.

Health practitioners have been able to start assessing patients for recommendations since the beginning of December.

While there currently aren’t any up-and-running dispensaries available to patients, Beshear has further affirmed that an executive order he signed in 2023 will stay in effect in the interim, protecting patients who possess medical cannabis purchased at out-of-state licensed retailers.

During last year’s November election, Kentucky also saw more than 100 cities and counties approve local ordinances to allow medical cannabis businesses in their jurisdictions. The governor said the election results demonstrate that “the jury is no longer out” on the issue that is clearly supported by voters across partisan and geographical lines.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.

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Regulators Ready to Enforce Cannabis Laws on Hemp THC Retailers in Maryland

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Cannabis regulators in Maryland are ready to bring the force of the law against businesses selling intoxicating products with hemp derivatives after an appellate court ruled in favor of the state last week.

The Maryland Alcohol, Tobacco and Cannabis Commission (ATCC) issued a warning on Sept. 12 that was directed at businesses selling intoxicating THC products without a cannabis license, putting them on notice of the appellate court’s order.

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In particular, the Appellate Court of Maryland ruled on Sept. 9 that the state’s law prohibiting businesses from selling hemp-derived products without a license is constitutional, reversing the Washington County Circuit Court’s decision to grant a preliminary injunction from October 2023.

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The injunction protected hemp retailers, producers, farmers and consumers, who had challenged the state’s licensing requirement under Maryland’s Cannabis Reform Act (CRA), legislation enacted in July 2023 to regulate an adult-use cannabis market. The injunction had prevented the ATCC from enforcing the cannabis law against businesses selling hemp-derived THC products without a cannabis license for nearly two years.

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“All retail establishments engaged in the sale of intoxicating THC, especially those in business prior to July 1, 2023, are on notice that the appellate court’s order, when effective, will terminate the limited protection afforded to them by the preliminary injunction issued by the Washington County Circuit Court,” according to an ATCC notice, warning businesses of its forthcoming enforcement efforts.

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“Moving forward, any person or business that engages in the distribution or sale of an intoxicating THC product without the required license issued to them by the Maryland Cannabis Administration (MCA) is subject to criminal prosecution under Maryland law,” according to the notice.

In addition to the ATCC’s restored enforcement powers, the appellate court ruled that intoxicating products containing synthetic hemp derivatives created in a chemical process, such as delta-8 and delta-10 THC, “are now and have always been illegal in Maryland.”

The ATCC provided a list of criminal offenses and violations for the distribution or sale of an intoxicating THC product without a license by the MCA:

  • Packaging, Labeling and Potency Violations: Selling a product that violates THC product packaging, labeling and potency standards – ABCA § 36-1104(b)
  • False or Illegal THC Advertising: Advertising a product as containing an amount of THC that violates AB § 36-1102 – ABCA § 36-1104(c)(1)
  • Unlicensed Sales Above THC Limits: Selling a product that contains more than 0.5 milligrams of THC per serving or 2.5 milligrams of THC per package without a license from the MCA – ABCA § 36-1102(b)(1)
  • Synthetic Intoxicating THC Products: Selling or distributing a cannabinoid product that is not derived from naturally occurring biologically active chemical constituents (aka “synthetic intoxicating THC products”) – ABCA § 36-1102(c)

According to the ATCC, the commission has the authority to seize products on sight that violate the Alcoholic Beverages and Cannabis Articles (ABCA) listed above.

Convictions related to the ABCA could result in $5,000 fines for each offense, including up to $10,000 for offenses of selling or distributing synthetic THC products. If convicted, the seized products can be destroyed, according to the ATCC.

“In response to the appellate court’s decision, the ATCC is prepared to expand its state-wide investigation and enforcement actions against any persons and businesses who distribute or sell intoxicating THC products in violation of Maryland law,” according to the notice. “The ATCC continues to be committed to ensuring the public health and safety of Marylanders through the application and enforcement of Maryland’s cannabis laws.”



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Meet the World’s First Cannabis Rugby Team: Crewmen 7’s Tackle Stigma Head-On

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Picture this: a rugby pitch, sweat in the air, bodies colliding with that mix of grace and chaos only rugby can deliver. On the sideline, instead of the usual beer logos and corporate banners, you see RAW Rolling Papers. Instead of Budweiser, there’s Beneleaves. Instead of a cooler stacked with light beer, there are capsules packed with CBD, CBG, and electrolytes.

Welcome to the world of Crewmen Rugby 7’s, the first cannabis-backed rugby squad in the United States. Born from a half-serious Instagram experiment and fueled by plant-based sponsorships, the Crewmen are rewriting what sports sponsorship looks like, and clearly enjoying the ride.

From a DM to a Movement

When Nigel Bowman launched the Crewmen, there was no big plan. No investors. No strategy deck. Just a phone, an idea, and an Instagram post.

“Crewmen Rugby 7’s is the first Cannabis Advocacy athletic organization in the United States. We strive to break the stigma between high-performance athletics and cannabis culture. I literally began this team on Instagram just to generate interest from local players for a small tournament. It caught wildfire and took off,” he told High Times.

That wildfire turned into a traveling squad of athletes who now compete in sevens tournaments, welcome players from around the world, and run onto the pitch wearing cannabis-branded kits.

RAW on the Jersey, Respect on the Pitch

If you know cannabis culture, you know RAW. Seeing the logo stamped on a rugby jersey is both a surprise and a statement. It says the old rules are changing.

“Crewmen Rugby is sponsored by amazing brands such as RAW Rolling Papers. Rugby is known for its hard game play and camaraderie,” Bowman said. “We wanted to change the dynamic of Alcohol Sponsorship to Cannabis Sponsorship in the aspect of promoting recovery and wellness. Our amazing sponsors help support the team with covering necessary tour expenses like housing, flights and uniforms. I keep great rapport with sponsors that have helped build us up.”

That partnership didn’t happen overnight. “All of our sponsorships were derived from the Instagram platform and direct messages to the companies. It took about a year and a half to gain sponsorship from RAW. It was well worth the wait to represent such an iconic brand within cannabis culture!”

The takeaway is clear: rugby doesn’t need beer logos to thrive. Cannabis brands can carry the culture too.

Recovery Is Part of the Game

The Crewmen aren’t just about uniforms. They’re leaning into recovery, showing that cannabinoids can help athletes keep going after the toughest hits.

“We have a line of custom-formulated hemp products from our vertical processor, Reverb Wellness, under Crewmen Brands. Some of these products include a topical 3:1 CBD to THC, rosin disposable vapes, recovery capsules with CBD:CBG:Electrolytes and pre-rolls. We also have a line of .510 thread cartridges processed by Beneleaves Limited for Medical and Recreational use in dispensaries around Ohio.”

For Bowman, the products double as proof that cannabis has a place in sports medicine and athlete care.

Stigma, Smashes, and Selling Jerseys

Rugby fields are usually a parade of beer and liquor logos. Cannabis logos, though? They still make people stop and stare. That’s exactly the point.

“Sports and athletics have stigmatized the use of cannabis for as long as I can remember. I started the Crewmen with the idea of putting well-known Cannabis brands in the face of the Rugby community. Athletes use cannabis or CBD to recover from intense workouts/games and I’d like to normalize it within the sports community.”

The reaction has been instant. “Being able to host international athletes is a true privilege. When we wear our uniforms to large-scale tournaments, people always want to buy one. I believe that it’s because they have never seen it before, as alcohol sponsors flood our Rugby Community. We just wanted to separate ourselves from the norm. We still maintain the high-performance aspect of the sport. While wearing the brands that have made a major impact on the Cannabis Community.”

Eyes on Rugbytown

Every team has a dream stage. For the Crewmen, it’s Rugbytown USA in Glendale, Colorado, one of the most prestigious sevens tournaments in the country.

“What would be next for Crewmen Rugby 7’s is ideally to make it to Rugbytown USA. That is the largest-streamed International 7’s competition in the United States. I’m hopeful that 2026 is our year. In previous years, Native Roots dispensary sponsored the Tournament based in Glendale, Colorado. So the rugby community isn’t unfamiliar with cannabis sponsors. But it’s more hush-hush than the narrative that we push with Crewmen Rugby 7’s.”

If a Team Were a Strain

Ask Bowman what strain captures his team, and he doesn’t miss a beat.

“If Crewmen had a signature strain, it would probably be in the Kush lineage. Kush has a wide array of crosses and I believe we showcase individuality while maintaining a common goal. I think we highlight the products under Crewmen Brands by Reverb Wellness very well. They have started to gain popularity nationwide. Even getting our topical to the Rugby Tens Championship in California and Rugbytown for international athletes to use for recovery. Our team is about educating people and players who are not informed about how Cannabis can improve overall health and quality of recovery.”

Shock, Curiosity, Amazement

Face the Crewmen on the field and it’s not just the rugby that gets people talking.

“The reaction that first comes across from our opponents and other spectators is amazement. It’s something a lot of players and staff haven’t seen before we brought Cannabis Sponsors to the table. Now more and more teams are diversifying their sponsors. I’d like to think that cannabis sponsorship will be a normal thing for all athletic associations within the coming years.”

A Gentleman’s Game Played by Hooligans

Bowman says it best: “Rugby is a very high-impact sport. A Gentleman’s Game Played By Hooligans, if you will. Cannabis Culture adds to the team’s identity by spreading education about the plant we are so passionate about. If it weren’t for a wacky idea to start a cannabis sports team one day when I was budtending, we wouldn’t exist. Chase your dream no matter how wacky people may think it is. There’s always at least one person willing to back your cause.”

What started as a shot in the dark is now a traveling crew with a mission. The Crewmen keep playing, keep teaching, and keep proving that the best culture is the one lived out loud.

Photos courtesy of Crewmen Rugby 7.



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