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CBD Lawsuit Rejected + Auxly Cannabis Earnings Stand Out

By Shadd Dales On Apr 2, 2026

A lawsuit filed… and then rejected less than 24 hours later. In this episode of Trade To Black, presented by Flowhub, host Shadd Dales and Anthony Varrell break down one of the more surprising developments out of Washington this week. After Smart Approaches to Marijuana (SAM) moved to block the Trump administration’s Medicare coverage pilot for hemp-derived CBD and low-dose THC products, a federal judge quickly denied the request for a lawsuit— keeping the program alive and setting a hearing date for 4/20. In the other segment, Hugo Alves, CEO of Auxly Cannabis Group (TSX: XLY) (OTCQB: CBWTF), joins the show to break down a strong 2025 earnings performance.

Hugo Alves, CEO of Auxly Cannabis, joined the show for his first appearance on the live stream to discuss the company’s fiscal year results, which included 24% revenue growth to $151.5 million and a 64% jump in adjusted EBITDA to $43.8 million. Alves credited the performance primarily to Back 40, which holds the number one brand position in Canada and can be found in 97% of retail locations, with Liquid Imagination and Fire Breath occupying the top two cultivar spots nationally.

He described Auxly’s purpose-built 1.1 million square foot hybrid greenhouse in Leamington, Ontario — designed from the ground up specifically for cannabis — as a key competitive advantage, delivering both cost efficiency and quality at scale that competitors would struggle to replicate given the capital and time required.

The hosts closed with an update on the SAM emergency restraining order seeking to block the CMS CBD pilot program, which a judge denied in under 24 hours — though the underlying lawsuit remains active with a hearing scheduled for April 20th. Dales and Varrell also noted that White House meetings with industry stakeholders took place on April 1st as part of the ongoing regulatory process, with Tilray CEO Trent Wolfe confirmed to appear the following Tuesday to provide a firsthand account of those discussions alongside earnings commentary.

This isn’t just a legal headline — it’s a signal. Because it shows how quickly the conversation around cannabinoids and federal healthcare is evolving. And it raises a bigger question: is policy starting to move faster than the opposition can react?

From policy to performance — we got you covered. Log on and leave your comments!

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Shadd Dales

Shadd Dales is the Founder and President of The Dales Report and has an extensive background in the business media industry.

His work translates into over 15 years in mainstream media that included roles with BNN Bloomberg, CTV Properties and the iHeart Radio Network.

Shadd is considered one of the leading on air talents in both the cannabis and psychedelic space and has interviewed some of the most notable CEO names in the industry.

Shadd’s vision is to establish a content platform that is equivalent to a mainstream broadcast produced in a format that is relevant for today’s investor.