Good morning.
Two important things this morning:
We have a brand new partner joining us at Cultivated: Vangst. More on that below.
Join us at Noon Eastern for the first in our series of webinars we’re producing with our friends at Lit Alerts about how to navigate price compression. Register on LinkedIn.
Let’s get to it.
-JB, JR, ZH
Today’s newsletter is 1,102 words or about a 9-minute read.
THIS NEWSLETTER MADE POSSIBLE BY:
📅 CULTIVATED CALENDAR
Upcoming Cultivated events that should be on your radar:
TODAY | How New York Operators Can Navigate Price Compression Webinar
May 5-7 | Cultivated @ MJ Unpacked
May 28 | Midwest Cannabis Summit TICKETS AVAILABLE NOW
💡 What’s the big deal?
SHOW ME
Missouri’s $5 billion cannabis market has a licensing problem
Driving the news: Missouri has emerged as a major cannabis market in just a few years since the first sales launched on Feb. 3, 2023, but problems with licensing have persisted.
A court ruled on Mar. 10 that the state erroneously denied licenses to Hippos LLC, a prospective medical operator, after the state’s third-party scorer Wise Health Solutions failed to consistently score applicants, according to the court order.
What they’re saying: “In each of Hippos’ applications, there were many instances in which identical answers to the same question received inconsistent scores. That should never have occurred if Wise’s scorers had followed the instructions that they were given,” said the 30-page ruling.
The ruling came almost one month after a state audit released a scathing report on Missouri’s flawed medical licensing process.
Zoom out: Missouri has solidified into a market with just over $100 million in monthly sales. Total sales recently crossed the $5 billion mark in January, according to state data.
Much like most states that convert from medical-only to recreational, most of the earliest sales came from medical dispensaries that were allowed to convert.
Starting in 2023, the state began the first of three rounds of issuing 48 microbusiness licenses to candidates whose eligibility was based on prior convictions and income. In all three rounds, the state had to contend with license winners who were deemed ineligible after the fact.
Since then, the state has updated its review process to fully vet candidates before they are awarded a license, though lawmakers stripped that update of a provision that would have barred past applicants that were later deemed ineligible.
Our take: It’s debatable whether Missouri counts as a Southern or Midwestern state, but it is close enough to the red states that comprise the American southeast to set an example for what legal cannabis markets could look like for conservatives.
So far, the Show Me State has presented a profitable marketplace, but its attempts to license new entrants continues to be a challenge.
P.S. we would be remiss if we didn’t give a shout out to The Missouri Independent and their ongoing coverage of their state’s cannabis market.
-ZH
📣 Quotable
"There is a tendency in this industry for press releases to hide the ball with not creative accounting, but just using creative language on the headlines in order to bury the actual truth as to performance,” said Marc Hauser, who writes the consistently excellent Cannabis Musings.
“And it's frustrating because people just read the headlines rather than getting into the discipline of learning and understanding how to read the press release but also read the financials and understand what is really happening here," Hauser was on last Friday's This Week in Cannabis.
Catch the full episode:
VANGST*
Finding cannabis talent shouldn't feel like finding a needle in a haystack
Most hiring managers in this industry know the frustration: posting a job, sifting through applicants who don't understand state licensing requirements, badging rules, or the operational reality of plant-touching work.
It's a different kind of hire — and general staffing agencies treat it like any other.
Vangst doesn't.
As the cannabis industry's dedicated staffing platform, Vangst has built a network of 300,000+ workers who actually understand this space. Whether you're scaling a cultivation facility, staffing a multi-location retail operation, or building a corporate team, they connect you with vetted candidates who are ready to work — and compliant from day one.
Their model is built for how this industry actually operates: temporary staffing for seasonal surges, temp-to-hire arrangements so you can evaluate fit before committing, and direct placement for key roles.
And once a Vangst temp clocks 360 hours with you? You can bring them on full-time with zero conversion fee.
300,000+ cannabis workers. Every hiring model. Zero guesswork.
→ Find your next hire at Vangst.com
*sponsored
⏩ Quick hits
Connecticut lawmakers are considering a bill that would allow higher potency THC products with a "high potency" label. The Nutmeg State currently caps flower at 35% THC and edibles at 5mg per serving.
Regulators in Rhode Island are recommending a ban on THC beverages in bars and restaurants, much to the disappointment of the state's hospitality industry.
Despite the best efforts of operators in Michigan, the state's new 24% wholesale tax will be due in April.
Today is the deadline for Ohio voters to offer their signatures on a proposed ballot measure that would block lawmakers from reshaping the state's legalization rules.
A split among Republicans in South Carolina resulted in the state Senate's attempt to ban intoxicating hemp to fail. Now the lawmakers have to see if they can find a consensus on regulating hemp.
👨⚖️ Lawsuits
The U.S. Department of Defense urged a federal court to dismiss discrimination claims against a former federal employee who claims he wrongfully lost his job after refusing to divulge whether or not he had used cannabis in the past.
🧳 People moves
1906 is looking for a freelance copywriter for paid digital ads.
⁉️ One odd thing
Police in West Yorkshire, England recently reported a raid that uncovered illicit cocaine, cannabis, and ketamine. Police also happened to find about 50 pounds of stolen corn flakes, but no further explanation was given for the contraband breakfast food. Maybe someone had the munchies?
📰 What we’re reading
New Cannabis Report Use Report Is Thorough But Also Dated And Already Being Weaponized | Talking Joints Memo
'Not very realistic': San Antonio hemp businesses react to Texas' new THCA deadline | San Antonio Express-News
An Army Reservist Owns a Cannabis Dispensary. It May End His Career | New York Times