Good morning.
Today at 10 AM Eastern, Jeremy will be joined by Sunderstorm CEO Cameron Clarke to talk about the company’s recent acquisition of Lime and what’s on tap for cannabis brand M&A. Watch it on LinkedIn.
-JB, JR, ZH
Today’s newsletter is 770 words or about a 5.5-minute read.
THIS NEWSLETTER MADE POSSIBLE BY:
📣 Quotable
"This whole thing has really turned into a nightmare," aspiring cannabis entrepreneur Stan McKinney told Crain's Chicago. McKinney is part of the ChiCannis collective that won six social equity licenses, but has yet to open a single location. ChiCannis is just one of dozens of operators that have struggled to open for business in Illinois.
Read more from reporter John Schroyer.
✍️ Apply for the waitlist today
On January 29th, Gotham and Cultivated will host our inaugural event: The Highrise.
The Highrise’s goal is to host an event where attendees represent the full breadth and depth of the cannabis industry in New York and throughout the country.
Yesterday, we let those that were accepted know that they had seven days to buy their tickets. (If that’s you — be sure to make that purchase before Sunday night.)
If you still want to be be on the waitlist get your application in today » thehighrise.nyc
LIT ALERTS INSIGHTS*
New Year, New Menus
Many retailers are taking time in January and February to refresh and rebalance their menus.
As markets progress, how many SKUs a store should carry in each category is a frequently revisited topic.
Lit Alerts analyzed a current snapshot of the median number of actual SKUs being carried in each category in East Coast cannabis markets.
As expected, Maryland continues to lead the pack with stores carrying the greatest variety. This is likely due to Maryland's lowest store density and its commitment to the medical market.
New York and New Jersey are eerily close with a slight bit of an edge on variety to New Jersey.
Massachusetts menus continue to scale back with pre-roll SKUs taking up more and more space.
Connecticut has a fairly even balance between the four main categories (flower, pre-roll, vapes, and edibles.)
Important Notes: Non-cannabis SKUs were pulled from this analysis as the analysis was focused on cannabis items.
Using Lit Alerts, you can zoom in on your local market and easily perform a similar analysis to see how stores stack up in your area.
Have a look at Lit Alerts’ exclusive insights into January 2026 SKU counts in East Coast markets. 👇
*To learn more about Lit Alerts and get a special offer only available to Cultivated readers, visit litalerts.com.
⏩ Quick hits
The Republican-controlled House reaffirmed its position to block Washington D.C. from allowing cannabis sales despite voters approving legalization in 2014.
Colorado announced two recalls last week, both of which were the result of detecting banned pesticide chlorfenapyr.
Much like a similar effort to repeal legalization in Massachusetts, signature gatherers in Maine for a ballot initiative that would roll back legalization in Vacation Land are reportedly misleading voters into approving the ballot measure.
Legalization in Hawaii could come to the ballot box if state Rep. David Tarnas has his way.
Thailand continues to tighten regulations around cannabis just a few years after the nation legalized it for all adults. The government began backpedaling on legalization last year.
🗓️ Don’t miss
We’ve rescheduled our rescheduling webinar for Thursday, January 15: Banking Implications of Cannabis Rescheduling: What’s Next?. We’ll chat with Shield Compliance CEO Tony Repanich, Blank Rome LLP Partner Scott Rome, and Dutchie VP Bryan Barash.
This webinar will break down what rescheduling actually means for cannabis banking, financial services, compliance, and operator access to capital. Moving past the headlines, this session focuses on what changes immediately, what doesn’t, and how banks, operators, and advisors should prepare for the next phase of normalization.
🚀 Deals, launches, partnerships
KEY Investment Partners acquired BellRock Brands' portfolio, reviving the company out of receivership. The brands include Dixie Elixir’s, Rebel Coast, Mary’s Medicinal’s, and more. Former Curaleaf CEO Joe Bayern will serve as CEO.
🧪 Science & research
Research out of Oregon State's Global Hemp Innovation Center in the College of Pharmacy and Linus Pauling Institute found that compounds that are present in hemp can block COVID-19 from entering human cells.
📰 What we’re reading
Can Massachusetts lead the way in medical cannabis research? | Boston Globe
California's Departing Cannabis Regulator Reflects on Leading the Nation's Biggest Market | CannabisWire
Lifted, Not Reckless: How Cannabis and Fitness Are Finding Common Ground | Grants Pass Tribune