Good morning.
Tune in at 10 AM Eastern where we’ll be joined by Cronos Group CEO Michael Gorenstein to chat about Q1, how he’s looking at rescheduling, and more. Find it on our YouTube and LinkedIn (and give us a follow while you’re there).
-JB, JR
Today’s newsletter is 559 words or about a 4-minute read.
THIS NEWSLETTER MADE POSSIBLE BY:
📅 CULTIVATED CALENDAR
Upcoming Cultivated events that should be on your radar:
May 28 | Midwest Cannabis Summit NEW DATE
⏩ Quick hits
The White House drug czar wants to be clear: cannabis is still illegal
Drug czar Sara Carter Bailey told Newsmax that the rescheduling order only applies to medical use and research, not recreational cannabis, adding that the administration remains focused on illicit grows tied to foreign cartels and products she says have reached 90% THC potency.
📣 Quotable
“Cannabis (yes, technically federally illegal), but legal in New York State, regulated, tested, labeled, and purchased by adults making a conscious choice, somehow crosses a moral line that a double pour of our 1911 Bourbon does not,” Eddie Brennan, the CEO of Beak & Skiff Apple Orchard in New York, which also runs the cannabis brand ayrloom (a top-seller in the Empire State), said on LinkedIn in response to a customer.
“I'm not here to shame anyone for enjoying a cold 1911 hard cider. We make a great one. Maybe the best in the country! But the cognitive dissonance is real, and it's worth naming.”
The full post is worth a read, and a revealing look at the stigma cannabis still carries even in progressive states like New York.
⏪ In case you missed it
The cannabis industry had a packed week last week — and we broke some of it on This Week in Cannabis Live.
🤝 Deals, launches, partnerships
Curaleaf opened locations in Jacksonville Beach and Fernandina Beach, continuing to build out its Florida footprint. $CURLF ( ▼ 1.07% )
RYTHM will pour hemp-derived THC beverages at Navy Pier starting May 22 under a new multi-year partnership, adding Chicago's most visited destination to a venue roster that already includes the United Center. $RYM ( ▲ 0.5% )
💸 Earnings roundup
Earnings continues:
Cresco Labs reported Q1 net loss of $17 million on $151.3 million in revenue, down from $165.8 million in Q1 2025. Adjusted EBITDA came in at $32.9 million, or 21.7% of revenue, with adjusted gross margin of 50.7%. $CRLBF ( ▼ 6.36% )
Chicago Atlantic reported Q1 net income of $4.8 million on net interest income of $13.1 million, with distributable earnings of $0.47 per share matching the prior year despite a $3.8 million credit loss provision. $REFI ( ▲ 2.93% )
SNDL reported Q1 net loss of C$9.9 million on C$195.9 million in revenue, down 4.4% year-over-year across both its liquor and cannabis segments. Adjusted EBITDA came in at C$5.8 million, down from C$9 million in Q1 2025, with the company maintaining C$213.4 million in unrestricted cash and no debt. $SNDL ( ▼ 1.03% )
🧳 People moves
Emily Biekert started as chief of staff at Vertosa, she said on LinkedIn.
Stephanie Daley is departing Wana Brands after nine years, in yet another sign of top execs departing the industry.
📰 What we’re reading
Selling Pot Is a Tough Business, but One California Company Is Beating the Odds | Wall Street Journal