Good morning.
Today on Cultivated Live we’ll be joined by Carter Lewis of Aquinnah Capital. He’ll break down what he's actually looking for when he underwrites a deal, which states he's targeting right now, and why he built a strategy that doesn't depend on exits. Don’t miss it.
Let’s get to it.
-JB, JR, ZH
Today’s newsletter is 1,002 words or about an 8-minute read.
THIS NEWSLETTER MADE POSSIBLE BY:
💡 What’s the big deal?
BAY STATE
Massachusetts lawmakers push back on recriminalization bid
The Massachusetts State Legislature appears to have little interest in rolling back legalization, despite a well-funded campaign in the state to do so.
What they’re saying: "How do you answer that this was voted on and it’s the will of the people to have this? What do you tell all the people that have invested all this capital into these businesses?" asked state Sen. Barry Finegold during a hearing on Monday.
A ballot campaign recently crossed the signature threshold that would recriminalize recreational cannabis, while preserving the right to possess. Medical cannabis would remain, but the state’s commercial market would be outlawed.
But there seems little appetite to reverse course on legalization based on the hearing. After letting a pro-legalization advocate speak without question, the legislature pressured the ballot measure spokesperson to justify her position.
What they’re also saying: "Massachusetts is just not as comfortable a place to live. We walk across the [Boston] Common and smell weed. I drive down I-93 and the car in front of me is a hot box, said Wendy Wakeman, spokesperson for the campaign to rollback cannabis legalization in the state.
Before she spoke, Wakeman asserted that she was not affiliated with Smart Approaches to Marijuana (SAM), an anti-cannabis group, which is how she was introduced. Wakeman is the spokesperson for the Coalition for a Healthy Massachusetts which is leading the charge on the ballot measure. The organization's sole political donor is SAM Action, the lobbying arm, which gave about $1.35 million in 2025.
Massachusetts state law requires that ballot measures secure 74,574 signatures from registered voters. From there, the measure is sent to the legislature which has the option to pass it, pass a substitute, or ignore it. If they don't pass it, the campaign then must secure 12,429 more signatures by the beginning of July to get onto November's ballot.
The campaign against a legal cannabis market was repeatedly accused of misleading voters when collecting signatures.’
Our take: There is plenty about commercial cannabis of which to be critical. Rolling back legalization is not a reasonable way to fix any of these problems.
-ZH
📣 Quotable
“This legislation is an opportunity to bring equity and equal opportunity into our nation’s growing cannabis industry,” said Rep. Troy Carter (D-LA) who along with Rep. Guy Reschenthaler (R-PA) introduced the CLIMB Act, which would allow cannabis firms to access lending and banking services if passed.
“By working directly with small, minority, and veteran-owned cannabis businesses, it’s clear that access to capital remains one of the biggest barriers to entry and to success in the industry. By bringing symmetry into the business ecosystem with the CLIMB Act, we can help communities that have long been harmed by the criminalization of marijuana become leaders in business – and that’s what the American Dream is all about.”
A version of this bill was previously introduced into Congress but stalled.
LIT ALERTS*
New Jersey | Average Revenue per Location
Following up on our analysis of average revenue per location in New York, and by reader request, this week Lit Alerts breaks down average revenue per location in New Jersey ranked from the highest earners (Decile 1) to the lowest (Decile 10).
Compared to New York, revenue in New Jersey is even more concentrated at the very top. The drop-off from Decile 1 to Decile 2 in New Jersey is a staggering 60.7%.
New Jersey’s Top Performers in Decile 1: The top 10% of locations are powerhouses, averaging $1,768,000 in monthly sales, which annualizes to over $21.2 million per location.
While both states show a similar "power law" distribution — where a small number of stores capture the majority of revenue. However, New Jersey’s top-end locations are significantly more productive than New York’s. New Jersey's top locations generate roughly 76% more revenue than New York's top locations.
New Jersey outranks New York in almost every decile, however as you move to the bottom deciles (8-10) the numbers start to converge.
*To learn more about Lit Alerts and get a special offer only available to Cultivated readers, visit litalerts.com.
⏩ Quick hits
The hemp industry is ramping up its D.C. lobbying push ahead of the looming November ban on hemp-derived THC, with Hemp Industry and Farmers of America, Total Wine & More, and Edible Brands all filing new lobbying registrations in recent months. Read more.
Nebraska's Medical Cannabis Commission is waiting on two bills moving through the Legislature that would fund its first staff and let it begin collecting fees — with commissioners holding off on application timelines until the session wraps in mid-April.
The South Carolina Senate passed a bill 35-4 that keeps some hemp-derived THC products legal for adults over 21, limiting sales to beverages and gummies with no more than 10 milligrams of THC per serving, after an earlier version of the bill failed past midnight before senators reversed course the next day. The bill now heads back to the House.
📰 What we’re reading