Good morning.
In today’s, we’ve got a deeply reported story from Chris Casacchia about how cannabis companies are dealing with increased energy prices thanks to President Trump’s “conflict” in Iran. It’s an insightful look into how these geopolitical shocks ripple through every facet of the sector — and an important story for anyone in cannabis.
Read an excerpt below and be sure to hit the link to read the full story.
All that, plus this month’s East Coast 8th Index from our partners at Lit Alerts.
Let’s get to it!
-JB, JR
Today’s newsletter is 1,187 words or about a 9-minute read.
THIS NEWSLETTER MADE POSSIBLE BY:
💡 What’s the big deal?
OIL
Cannabis companies adjust to record spike in oil prices
Driving the news: Cannabis companies and ancillary businesses are facing new economic challenges as U.S. military operations in Iran have led to record spikes in oil prices and increased inflationary pressures.
On Friday, sobering government reports underscored the uncertainty in the region and rippling effects across the globe. Energy prices in March rose nearly 11%, fueled by a 21.2% surge in gas prices, the highest monthly increase since 1967 when the U.S. Bureau of Labor Statistics began publishing the gasoline index as part of the broader Consumer Price Index.
While some experts predict the escalating energy crises could continue for months, a few oil tankers have passed through the Strait of Hormuz in recent days as the U.S. Navy clears out seabed mines in the waterway amid a tenuous cease fire.
What happened: On Sunday, President Donald Trump on Truth Social announced the Navy would enforce a blockade Monday morning on all Iranian ports in the Strait following unsuccessful negotiations with Iran to end the war. Meanwhile crude oil prices have surged past $104 per barrel, adding more capital strain to cannabis operators.
Why it matters: Nabis, one of the largest cannabis distributors in California, Nevada and New York, was hit with a 33% increase in fuel prices within a quarter. The San Francisco-based company this year projects to spend $2 million on gas, a steep 60% increase from $1.25 million in 2025.
In New York it’s forced to take circuitous routes avoiding the New Jersey Turnpike, a tollway into Manhattan and other parts of the state, because the path violates federal interstate marijuana transportation laws. In California, the average price of gas April 12 was $5.894, the highest in the country, according to AAA.
What they’re saying: “It feels like playing a video game when the level of difficulty just increases a bit and you have to think of new ways to address problems,” founder and CEO Vince Ning told Cultivated.
Read the full story.
📣 Quotable
On our debanking issue with Chase:
LIT ALERTS*
The East Coast 8th Index | April 2026
The April 2026 update of The East Coast 8th Index is in and the markets continue to experience significant price compression across all tracked states.
The general trend, as expected, is one of stabilization at lower price points.
In New Jersey, the most expensive market, its price has corrected significantly from its July high of ~$45.00. The price has stabilized since December, hovering just under the $39.00 mark.
In New York the downward trajectory continues after a brief "holiday bump" late in 2025. The state has officially broken the $38.00 floor, settling at $37.56 this month.
Connecticut and Maryland continue to move in near-lockstep. Both experienced notable price drops between March and April. Maryland, in particular, saw a sharp downward turn this month, widening the gap between the mid-tier and the more expensive NY/NJ markets.
Massachusetts remains the extreme outlier. At $23.53, an eighth in Massachusetts is roughly 39% cheaper than in New Jersey. Despite already being the "budget leader," the market has yet to find its absolute floor, showing a continued decline as we head into the 420 holiday.
*To learn more about Lit Alerts and get a special offer only available to Cultivated readers, visit litalerts.com.
⏩ Quick hits
Oregon Gov. Tina Kotek signed HB 4142, requiring hospices, palliative care facilities, and residential health organizations to develop policies allowing registered medical cannabis patients to use cannabis on-site. The bill, which passed the House 39-3 and the Senate 20-8, takes effect January 1, 2027. Read more.
Callie's Apothecary in Montgomery is on track to become Alabama's first operational medical cannabis dispensary, nearly five years after the state legalized medical marijuana in 2021. Three dispensary licenses have been issued, with up to nine locations expected statewide by summer, though advocates are pressing the state for a public education campaign to help patients navigate the registration process. Read more.
New Jersey is opening a $15 million low-cost lending program for small cannabis cultivators and manufacturers, with applications opening April 20. Loans range from $100K to $1.5 million, with 5% of funds set aside for businesses in communities hit hardest by the war on drugs. Read more.
Maine lawmakers are debating a bill that would bring mandatory testing and seed-to-sale tracking to the state's medical cannabis program, but the fight is exposing a deeper problem: it's unclear whether the state even has the legal authority to require testing at all. Small cultivators and organic farmers are pushing back hard, warning that the proposed rules would put them out of business.
🤝 Deals, launches, partnerships
Glass House Brands $GLASF and Vireo Growth $VREOF announced a joint venture combining their California dispensary operations, creating a 23-location retail network backed by a preferential supply agreement with Glass House. Vireo, which recently acquired 12 dispensaries and a home-delivery platform from Eaze, will hold a 50% stake alongside Glass House, with an option to buy out Glass House's interest after five years. Former Eaze CEO Cory Azzalino will serve as CEO of the JV.
After a 10-store pilot last year, Target obtained hemp edible licenses for every Minnesota location on April 1, making it the state's largest licensed hemp retailer. The move comes even as a federal ban on higher-potency hemp THC products is set to take effect in November. $TGT ( ▲ 0.65% ) Read more.
Village Farms is testing potency range labeling on Pure Sunfarms Pink Kush flower in British Columbia, becoming the first company to show a THC range instead of a single percentage on dried flower in Canada's recreational market. The move is designed to better reflect natural variation in cannabis potency and follows the company's own published research on THC variability. $VFF ( ▲ 1.12% )
👨⚖️ Lawsuits
The Bob Marley estate filed suit against Tilray in Delaware last month, alleging the company shifted licensing payment obligations for the Marley Natural brand to an empty corporate entity to avoid paying royalties. The Bob Marley estate terminated the deal after unpaid royalties hit nearly $13 million and is now seeking the remaining $11.3 million balance. $TLRY ( ▲ 3.65% )
😜 One fun thing
RYTHM cannabis products show up in DJ Khaled’s new music video, a sign of increasing normalization of cannabis beverages: $RYM ( ▲ 8.13% )
📰 What we’re reading
Editorial: New York’s pot problem | Albany Times-Union