DOJ Silence Keeps Cannabis Investors on Edge
In our latest Trade To Black podcast presented by Flowhub, hosts Shadd Dales and Anthony Varrell welcome back Anthony Coniglio, CEO of NewLake Capital (OTCQB: NLCP), for a timely discussion on the latest cannabis rescheduling rumors and what they mean for investors right now. Much of this is driven by the tweets from Matt Gaetz and Marijuana Moment editor Anthony Martinelli that reignited speculation around the DOJ and DEA timeline following President Trump’s December 18 executive order. The Department of Justice says it has “no updates” more than a month later — a gap that continues to fuel uncertainty across the cannabis sector.
Cannabis stocks initially surged after the executive order, only to be hit by what some feel like an orchestrated, industry-wide short attack. Now, six weeks later, the impact is still visible. Volatility remains elevated, sentiment is fragile, and many investors are clearly still rattled by how quickly that move unfolded — making this cycle feel very different from past reform-driven rallies.
Cresco Labs announced a $100 million at-the-market offering, which the market received positively with the stock rising approximately 5% on the news. Canopy Growth’s significant equity issuances as evidence that companies will leverage ATMs more freely after rescheduling.
We also take a closer look at NewLake Capital’s 28% share price increase in December, backed by heavy trading volume. Anthony explains what drove that move, how investors are positioning around reform, and why balance sheet strength matters more than ever.
Coniglio discussed the cautious approach operators are taking toward new markets like Texas and Kentucky, with many viewing licenses as call options on future opportunities rather than immediate deployment targets, particularly given ongoing hemp market uncertainty and capital constraints.
The conversation turned to the hemp extension debate, with Coniglio outlining competing forces including the alcohol lobby’s interest in THC beverages and political reluctance to vote for synthetic THC in an election year. He suggested the Trump administration’s CBD goals outlined in the executive order might be achievable through state-licensed cannabis operators producing full-spectrum products, potentially eliminating the need for hemp industry concessions.
Finally, we cover the latest developments out of Pennsylvania, where momentum continues to build toward potential adult-use cannabis legalization in 2026 — and why many companies are already preparing behind the scenes to woo investors.
