Is California finally taking cannabis operators seriously — or is this just another half-measure? That’s the question at the heart of today’s episode of the TDR Trade To Black Podcast, presented by Dutchie. Host Shadd Dales and co-host Anthony Varrell are joined by Big Mike Straumietis, CEO of Advanced Nutrients, to break down the state of California’s new excise tax cut from 19% to 15%.
We cover the big picture on California’s tax change: Does 15% become the new normal, or does California need to go lower to compete with the illicit market? Guest Big Mike, CEO of Advanced Nutrients, calls the move “sleight of hand,” arguing the rate was 15% on January 1, 2025, briefly raised to 19%, and then rolled back. But this leaves operators no better off.
Big Mike highlights improving numbers in New York but it remains far smaller a market than California. He also reports growing medical-cannabis interest across the Middle East (including the UAE and Saudi Arabia) and steady progress in Spain, where licensed medical cultivation is expanding. Advanced Nutrients is preparing its “eighth generation” launch and MJBizCon presence.
New polling from Smart Approaches to Marijuana (SAM) frames a question to the people being polled that suggests rescheduling would incentivize marketing to children. We’ll discuss this and other US cannabis news, including a letter from 58 Kentucky farmers urging Senator Mitch McConnell not to impose mid-season changes that would upend contracts and harvests. And firearm laws under cannabis use have marked inconsistency. Florida is one such example.
In a closing strategy segment, Guap sketches multiple paths for the sector—from an MSO-friendly Schedule III sequence to a hybrid outcome where regulated hemp and state-legal cannabis expand in tandem. Varrell counters that, in practice, the outlook is binary: the industry needs Schedule III to eliminate 280E and unlock capital, or it faces mounting balance-sheet strain as maturities near. Both agree timing is unknowable, but they expect rescheduling to arrive before financial stress turns acute. Tune in for the full discussion.
