Good morning.
At 10 am, we’ll be joined by Organigram CEO James Yamanaka at 10 to chat about the company’s deal with Aurora. See you there.
And don’t forget, if you’re headed to Las Vegas at the beginning of December, we’re hosing a Cultivated Subscribers’ Breakfast on December 2nd. Register (free) today »
Let’s get to it.
-JB, JR
Today’s newsletter is 778 words or about a 5-minute read.
CULTIVATED CALENDAR
December 2 » Cultivated Subscribers’ Breakfast Las Vegas → Open to all subscribers. Secret Las Vegas location.
December 17 » Cultivated Buffalo powered by Jaunty → Our first event in Western New York. Get tickets before we run out!
Visit our revamped Events Page »
What’s the big deal?
GTI
Green Thumb’s not chasing a NYSE listing
Green Thumb Industries CEO Ben Kovler is always interesting to listen to on earnings calls. This week was no exception.
He’s not splitting Green Thumb in two to uplist like Trulieve. Kovler said separating the medical business brings operational and audit complications, and he wants more federal clarity first. “This industry has no buyers,” he said. Institutions want clarity on scheduling and taxes before they buy in, and only medical cannabis has moved to Schedule III.
Asked about multiples, Kovler put the sector at 4 to 6 times EBITDA, with Green Thumb at roughly 4 to 5 and Trulieve at 5 to 6. His bar for a split is high. “If a medical business traded at 15 times EBITDA on the New York Stock Exchange, we’d be thinking about this very differently,” he said.
On hemp, one of Kovler’s companies comes out ahead either way. RYTHM, where he’s chairman and interim CEO, sells hemp-derived THC drinks. Green Thumb, which started consolidating RYTHM Oct. 10, sells only in state-regulated markets. The Dec. 11 federal ban hurts one and helps the other.
Kovler says the drinks deserve a future. “We have long viewed THC beverages as a distinct category from intoxicating hemp products, and we believe they should exist in a regulated market,” he said. For now, they’re disappearing.
“The American consumer does not understand that this product is going away, and as they do, shelves are empty,” he said. “You’re seeing a category that’s 10 plus percent of sales in a liquor store going away.”
Virginia is a real bright spot. Recreational sales are set to start July 1, 2027, and Green Thumb holds one of five licenses. President Anthony Georgiadis expects a product shortage lasting up to three years.
The quarter itself was fine. Green Thumb reported a $4.8 million net loss on $324.4 million in third-quarter revenue, up 11% from a year ago. Same-store sales rose 3%, the first increase since the third quarter of 2024. The company expects fourth-quarter revenue to be flat to slightly lower. $GTBIF ( ▲ 1.28% )
Quotable
“This campaign was never about promoting the health and safety of Massachusetts residents,” NORML’s Paul Armentano said of the failed Question 8.
“It was a trial balloon by prohibitionist groups intent upon rolling back legal cannabis markets nationwide.” Read more.
Earnings round up
Trulieve reported Q3 net income of $900,000 on $230.2 million in revenue. Through the first nine months of 2026, Trulieve posted a $402.7 million net loss on $787.9 million in revenue, or $2.09 per share. $TRLV ( ▲ 1.93% )
Cronos Group reported Q3 net income of $17.8 million on $63.5 million in revenue, or $0.04 per share. For the first nine months of 2026, Cronos posted $69.2 million in net income on $161.7 million in revenue, or $0.16 per share. $CRON ( ▲ 5.98% )
Deals, launches, partnerships
Aurora cancels earnings call after agreeing to sell to Organigram
Canadian cannabis company Aurora Cannabis cancelled its November 12 investor call, citing its November 3 agreement to be acquired by Organigram. Aurora still released fiscal second-quarter results, with revenue up 9% to C$86 million on a 44% jump in international medical sales. $ACB ( ▼ 0.95% ) $OGI ( ▼ 1.38% )
Quick hits
Pennsylvania legalization back on the table after Democrats sweep
Democrats won control of Pennsylvania’s Legislature in Tuesday’s election, and the Pennsylvania Cannabis Coalition is already pushing lawmakers to put recreational legalization on the agenda. Both the coalition and the opposing Pennsylvania Family Council expect a bill could surface as soon as January 2027, and Gov. Josh Shapiro has backed legalization before.
Science & research
Researchers find 2,800-year-old direct evidence of psychoactive cannabis use
Researchers recovered cannabis plant offerings and psychoactive compounds in human hair from a 2,800-year-old monumental tomb in Siberia, which the authors call the earliest direct evidence of cannabis consumption, according to a study published in Science. The team says the findings point to use for psychoactive effects across Eurasia, though the evidence comes from a single burial site.
