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- Delaware joins the legal cannabis club šæ
Delaware joins the legal cannabis club šæ
Plus, Californiaās tax hike goes into effect
Good morning.
Is it just us, or are you all counting down the days until the Fourth of July weekend?
In any case, todayās still a work day, so letās get to it.
-JB, JR, and ZH
This newsletter is 1,467 words or about a 12.5-minute read.
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š”Whatās the big deal?
US OF CANNABIS
Delaware is finally ready to join the legal cannabis club
Driving the news: Delaware will launch cannabis sales on August 1.
The little state can finally put its fingerprinting mishap behind it and start selling legal weed to the general public. The First State is set to join over two dozen other states when it allows the first recreational cannabis sales next month.
Perhaps as a testament to how far legalization has come in the US, Delaware's market is notable ā for how notable it isn't. It's not the first legal state in the region, with New Jersey and Maryland among its neighbors.
Delaware isn't even the first tiny state to launch a market ā Rhode Island allowed legal sales on December 1, 2022.
What theyāre saying: āThis new industry will generate critical revenue to strengthen our schools, infrastructure, and public health systems, while creating real opportunities for entrepreneurs,ā Governor Matt Meyer said.
āThis revenue also gives us a powerful tool to invest in the communities most impacted by the war on drugs, addressing past wrongs and ensuring that the benefits of this new market reach every corner of our state.ā
And also: "Our Delaware business unit, First State Compassion, was the first licensed operator in the state 10 years ago, and since then we have proudly served Delawareās medical cannabis patients. The investments weāve made in our facilities, brands, and employees have positioned us to be the leader in what promises to be a strong, high-growth cannabis market." MariMed CEO Jon Levine said in a released statement.
The state has 15 active medical dispensaries which will all be allowed to serve the legal market. MariMed and The Cannabist are among the major medical operators that will serve the larger recreational market.
Lotteries were held to determine the winners of 125 additional licenses in October and December, including 30 retail licenses.
After legalizing recreational cannabis in April 2023, the state was originally supposed to issue licenses to cultivators last November, processors in December, and then retailers in March with a market launch set for April 1, but the state was unable to meet any of those deadlines, like many states before it.
Held up by the FBI: The state law that legalized recreational cannabis in Delaware mandates that applicants must submit their fingerprints for a criminal background check, but the state was unable to get approval from the FBI to access the bureauās fingerprinting database leaving it unable to approve licenses.
A second law, HB 110, changed the fingerprinting requirement to adhere to the FBIās standards and the Office of the Commission of Marijuana was finally able to hand out licenses.
New leadership in time for the launch: Former Marijuana Commissioner Rob Coupe announced his resignation in January.
The state replaced him with Joshua Sanderlin, a cannabis attorney from the Washington D.C. area who was officially sworn in on May 16, after he had a chance to divest from some cannabis businesses in New Jersey.
"As Delawareās licensees prepare to begin recreational sales on August 1, we look forward to continuing our work alongside state officials and our members to ensure a smooth transition, promote public safety, and create meaningful economic opportunity for communities across the state," Tracee Southerland of the Delaware Cannabis Industry Association said.
-ZH
š£ Quotable
āWhile a raise of 4% may seem like nothing on paper, the reality is that California operators ā especially those in social equity programs ā are already operating on razor thin margins,ā Nabis CEO Vince Ning said in a statement, as Californiaās planned cannabis excise tax increase went into effect on Tuesday
āMeanwhile, with consumers paying nearly 50% in state and local taxes in certain markets, this increase will only widen the gap between the illicit and licensed markets. Despite raising over $7 billion in tax revenue and creating thousands of jobs since its inception, Californiaās market in 2025 is a far cry from what voters were promised in 2016.ā
ā© Quick hits
Former DEA administrator blasts illegal cannabis š
Derek Maltz, the former DEA Administrator, blasts the illegal cannabis industry on social media citing increased potency, illegal foreign pesticide use, and heightened cardiovascular risks. His points, though against the cannabis industry as a whole, further illuminate the need for proper support of the legal cannabis industry. Maltzās points overlook the reality that support for the legal cannabis industry to thrive would likely contribute to the eradication of its illegal counterpart.
New Mexico boosts cannabis police enforcement š®
New Mexico lawmakers passed House Bill 10 which took effect on July 1st, to crack down on illicit cannabis in the state. The bill will fund a new team of officers to criminally charge āthose they suspect are lying about the source of the marijuana, exploiting their workers or altering the drug.ā The bill also authorizes increased forensic accounting capabilities for the new team to track āgrowers from seed to sale.ā
Texas medical operators seek Delta-8 THC ban š
After Gov. Greg Abbott vetoed a statewide ban on THC in June, Texas medical operators want the legislature to ban Delta-8 THC and raise the age to buy hemp products, reports The Texas Tribune. Legislators will go to a special session on July 21 to discuss new hemp regulations.
US Cannabis licensing flatlines in the first quarter š
The total number of active cannabis licenses in the country remained stable during the first three months of 2025, according to a new report from CRB Monitor. Markets in New York and New Mexico saw growth, but it was countered by market retractions in Oklahoma and Oregon. Overall there was a decrease in pre-approved licenses, meaning there were fewer operators seeking licensure. Up north, Canadian licensing fell 2%.
California cannabis regulators seek PR firm š
Californiaās Department of Cannabis Control is seeking a PR firm to run its Real California Cannabis campaign, a consumer awareness and education push. The department is looking to contract for three years at $2.4 million, reports PR Week.
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š Deals, launches, partnerships
Charlotteās Web founders eye a new venture š
The Stanley brothers, creators of Charlotteās Web, are entering a new sector, cannabis and psilocybin sourced pharmaceuticals, with the goal of treating autism, PTSD, anxiety, and more. The new business will be based in Colorado and has raised $11 million. The company has its sights set on becoming the first to produce a USDA-certified organic pharmaceutical.
š§³ People moves
Cannabis advocacy organization Marijuana Policy Project, one of the largest in the US, is searching for a new Executive Director with ten or more years of experience. Check out the job description.
Maryland's Cannabis Administration is hiring a Managing Director of Policy and Government Affairs. The deadline to apply is July 14.
š° Earnings roundup
Bespoke Extracts announced a net loss of $260,000 on $263,000 in revenue for the first quarter of 2025. The Colorado-based company recently rebranded as The Joint Company.
š¬ Science & research
Study finds a lack of accuracy in flower testing labels š¬
A study out of Colorado University found that cannabis concentrates have a high consistency rate of accurate labeling. Flower, not so much. Of the products tested, 96% of the concentrates had accurate labeling which means the potency tested within 15% of the figure on the label, while the labels on only about 57% of the flower products were accurate.
š One fun thing
New Yorkās Office of Cannabis Management dropped some new Fourth of July safety guidelines. Start low, and go slowā¦
š This Fourth of July, fireworks arenāt the only thing that need a safety plan.
Whether youāre lighting up the sky or lighting up with friends, make more informed choices:
ā Store cannabis safely.
ā Start low, go slow, and understand your limits.ā NYS Office of Cannabis Management (@nys_cannabis)
5:30 PM ⢠Jul 1, 2025
š° What weāre reading
Marijuana Industry Lawsuit has 'Zero Chance' of Being Heard By Supreme Court, Former DOJ Lawyer Says | Marijuana Moment
'This tax could kill this industry.' California cannabis operators brace for increase | The Mendocino Voice
Missouri selects NY-based consulting firm to study marijuana market | The Missouri Independent
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