Good morning.

In today’s edition, we’ve got a dispatch from our very own California correspondent Chris Casacchia from Hall of Flowers. His big takeaway? What a difference six months makes. Read an excerpt below and be sure to click through and read the full story.

Plus, we’re launching a new regular stream this morning at 10 AM Eastern: Banker on Call. The stream is produced in partnership with our friends at Shield Compliance. Be sure to check it out on our LinkedIn channel.

-JB, JR, ZH 

Today’s newsletter is 1,174 words or about a 9.5-minute read.

THIS NEWSLETTER MADE POSSIBLE BY:

📅 CULTIVATED CALENDAR
Upcoming Cultivated events that should be on your radar:
May 5-7 | Cultivated @ MJ Unpacked
May 28 | Midwest Cannabis Summit TICKETS AVAILABLE NOW

💡 What’s the big deal?

CALIFORNIA DREAMIN’
Hall of Flowers points to a California cannabis rebound 🌼

What a difference six months makes.

The energy was high, optimism was up and business conditions are improving in the world’s largest cannabis market.

That was the overwhelming, and somewhat surprising, consensus from dozens of brands, retailers and other industry insiders interviewed last week by Cultivated at Hall of Flowers’ signature event at the Ventura County Fairgrounds in Southern California.

The takeaways were a stark contrast to perceptions at their last California show in September at the Sonoma County Fairgrounds, where survivability dominated chatter. The B2B trade show, which links brands with retailers, is one of the few in the nation sanctioned by a local municipality and state regulators to sell product samples and consume on-site, a longheld hope in nearly every other state-legal market.    

Though deep challenges persist in California, including declining annual sales and a robust unlicensed market the state’s Department of Cannabis Control pegs at nearly $6 billion, the vibes were high in the sunny, coastal town.

Some other insights: Established and leading brands seem to be diminishing their booth presence at Hall of Flowers, with several opting for reps and executives walking the floor and networking. That shift has led to an increase in newer and unestablished brands showcasing and launching products.

Hall of Flowers CEO and co-founder Dani Diamond told Cultivated he was pleased with this year’s turnout, and teased a new venue in the Fall.

Hundreds of brands and retailers attended the show primarily to ink deals while others came to increase brand exposure and awareness. 

“Women represent a good portion of customers and buyers recognize that,” Krystal Kitahara, CEO and co-founder of Yummi Karma and High Gorgeous, told Cultivated. 

“They realize when you have a brand that speaks to women that’s pretty important. They control the purse these days.”

📣 Quotable

"There was one thing down in the Grand Canyon years and years later that was a complicated story. By the way I legalized it in California. I did my initiative. It's the great irony, I was the worst spokesperson,” California Gov. Gavin Newsom said to Jonathan Martin of Politico.

Newsom was ham-handedly responding to whether or not he had ever smoked cannabis. Prior to the comments above, Newsom said that he was "scared straight" by his foster brother who he caught smoking from a "peace pipe" that Newsom was one of his prized possessions.

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Here's what sets them apart: Vangst handles the entire workforce management stack — payroll, workers' comp, insurance, taxes, HR, and scheduling — so your team can focus on the business, not the paperwork. 

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Quick hits

  • Whitney Economics is forecasting that U.S. legal cannabis sales will hit $30.5 billion in 2026, marking a rebound from 2025 sales which dipped for the first time since the first adult-use market launches in Colorado and Washington.

  • Georgia lawmakers approved an expansion of the Peach State's medical cannabis program, which will allow for the sale of vapes and remove THC limits which are currently capped at 5%. The bill still needs a signature from Gov. Brian Kemp before it goes into effect. 

  • Ohio's overhaul of cannabis hemp rules is apparently still in play. Local brewers are now urging the legislature to override a line-item veto from SB 56, which would have created a regulatory framework for THC beverages instead of outright banning the product category. 

  • California is directing Prop 64 funds toward illicit market enforcement, with Mendocino County seeking a $4.5 million grant to rebuild its dedicated cannabis enforcement unit after years of chronic understaffing left illegal grows largely unchecked. Read more.

  • Convenience Stores are well aware of the potential for cannabis sales amid the explosion of federally-lawful intoxicating hemp. The convenience industry wants in on hemp even as federal and state policy cracks down on the availability of the product.

🤝 Deals, launches, partnerships

  • Cheech and Chong's Global Holding Co. announced a new partnership with Breakthru Beverage Group, which will expand the reach of Cheech and Chong's brand of hemp beverages. 

  • Craft Beer BrewDog will relaunch under new ownership after Tilray recently acquired the embattled brand.

  • Cornbread Hemp announced that it secured an exclusive contract with Alliant Purchasing to participate in Medicare's pilot CBD program.

💰 Earnings

Glass House Brands reported a $15.5 million loss on $38.9 million in revenue for the fourth quarter of 2025. The results were similar to that of the third quarter of the year, but the year end results showed a drop in revenue from $200.9 in 2024 to $182 in 2025, with a $16.5 million loss, compared to $5.7 million profit in 2024. $GLASF ( ▲ 6.79% )

👨‍⚖️ Lawsuits

Jushi Holdings settled the first case in its Pennsylvania lawsuit against unlicensed operators selling illegal hemp-derived THC products outside the state's regulated market, with Revelry Supply agreeing to terms Feb. 11. The company says it will continue pursuing remaining defendants. $JUSHF ( ▼ 4.86% ) Read more.

In case you missed it

Jay and Jeremy talked to Clint Kellum, the new Director of the California Department of Cannabis Control on Cultivated Live.

Have a watch 👇

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