🌿 Virginia nears regulated recreational retail market, bipartisan bill seeks broader access to exchanges, and Kiva Sales & Service and Petalfast plan merger

Happy Friday Pre Rollers! Welcome to another edition of The Pre Roll, the cannabis newsletter that keeps you up-to-date on the industry happenings you need to know.

Here’s what we’re rolling up this week:

…and more. Let’s get to it.

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Retail ready. Virginia lawmakers have approved legislation to finally establish an adult-use cannabis market, sending a compromise bill to Governor Abigail Spanberger that would reconcile earlier differences between the House and Senate. The measure creates a comprehensive framework overseen by the Virginia Cannabis Control Authority, including licensing, product testing, packaging standards, and enforcement, with the goal of replacing the state’s unregulated illicit market with a taxed and regulated system.

The governor is expected to sign the bill, with an expected launch date of January 1, 2027.

Spanberger consistently took a clear stance on legalizing adult‑use cannabis in Virginia throughout her time as a Congresswoman and on the campaign trail. She also maintains an ‘A’ rating from NORML, a cannabis nonprofit public-interest advocacy group, indicating she has shown “support for ending marijuana prohibition of marijuana for adults and/or has cosponsored legislation to do so.”

Congressional climb. A new bipartisan congressional bill was filed this week that would allow U.S. cannabis companies to list on major exchanges like Nasdaq and the New York Stock Exchange (NYSE).

It would also shield financial institutions and service providers from federal penalties, significantly expanding access to capital and legitimizing the industry’s participation in mainstream financial markets despite ongoing federal prohibition.

The reintroduced CLIMB Act is sponsored by Representatives Guy Reschenthaler (R-PA) and Troy Carter (D-LA). The legislation was initially introduced way back in 2022.

Distribution Deal. Kiva Sales & Service and Petalfast have signed a letter of intent to combine operations, a move aimed at creating a more powerful, integrated cannabis distribution platform in California.

The proposed merger would bring together Kiva’s established retail-focused sales and distribution infrastructure with Petalfast’s broader national sales platform and brand portfolio strategy.

Petalfast Co-Founder and CEO Arun Kurichety will assume the role of acting CEO of the combined company upon completion of the transaction.

Georgia: The House overwhelmingly passed a bipartisan bill to modernize and expand the medical cannabis program by broadening qualifying conditions, updating possession limits, and easing access to products and delivery methods for eligible patients.

Massachusetts: A total of $28.8 million in grants was awarded through the Cannabis Social Equity Grant Program to support and expand cannabis businesses, particularly those led by entrepreneurs from communities disproportionately affected by cannabis prohibition.

Missouri: An appeals court ruled that state regulators must issue 13 previously withheld cannabis business licenses after finding significant flaws in how applications were scored in the licensing process.

Ohio: Opponents failed to collect the required number of valid signatures by the deadline to qualify a ballot referendum that would have blocked a recently passed law altering the state’s cannabis regulations and banning intoxicating hemp products.

Oklahoma: Lawmakers defeated a bill that would have allowed employers broader discretion to fire workers for medical cannabis use.

Rhode Island: Regulators are urging legislators to ban THC‑infused beverages from being sold or served in bars and restaurants.

Tennessee: A state agency discovered more than 600 retailers selling hemp products without required licenses after being put in charge of overseeing compliance earlier this year.

Ascend Wellness Holdings introduces revamped flagship brand

The vertically integrated cannabis operator unveiled a comprehensive relaunch of its Ozone brand, with upgraded product standards, new packaging, and a refreshed visual identity aimed at improving quality and customer experience across its markets.

Canopy Growth completes previously announced acquisition

The leading Canadian cannabis producer finalized its acquisition of MTL Cannabis, creating Canada’s largest medical cannabis business by revenue while strengthening supply, operations, and international growth potential.

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Stay tuned for more cannabis industry news next week!

💚,

The Pre Roll Team

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