The Cannabis Oversupply Problem No One Talks About
In the latest episode of Trade To Black, presented by Flowhub, host Shadd Dales and Anthony Varrell break down one of the biggest contradictions in cannabis: how an industry this popular can still be this financially broken. In segment one, Trent Woloveck, Chief Strategy Officer at Jushi Holdings (OTCQX: JUSHF) joins the show to break down what’s happening in Virginia, where lawmakers are advancing adult-use cannabis legislation. In segment two, Adam Stettner, Founder & CEO of FundCanna, returns to explain the cannabis oversupply problem, and why unpaid invoices, cash crunches, and stalled growth aren’t usually caused by bad actors — they’re caused by bad structures.
Kicking off with cannabis policy, we explore the significant developments in Virginia’s path to adult use cannabis legalization. Trent Woloveck, Chief Strategy Officer of Jushi Holdings, provided an optimistic update on the state’s progress, noting that bills in both the House and Senate have advanced to their final committees before floor votes.
The conversation highlighted key details of the pending legislation, including House Bill 642 and Senate Bill 542, with Woloveck noting that transition fees remain a contentious issue. While the proposed bills suggest fees between $10-15 million for medical operators transitioning to adult use, Woloveck pointed to New York’s failed model where $20 million fees resulted in only $33 million in sales over six months, compared to Maryland’s more successful approach with lower fees generating $420 million in the same period. Virginia’s part-time legislature, which operates for only 60 days, has demonstrated efficiency in moving the bills forward with a potential launch date of November 1, 2026.
The second segment featured Adam Stettner, CEO of Funcana, who provided an in-depth analysis of structural and oversupply problems plaguing cannabis markets, particularly in California and Michigan. Stettner has spent years financing cannabis businesses and watching how money actually moves (or doesn’t) across the supply chain. What he reveals is eye-opening. From massive cultivation oversupply to a shortage of licensed retail outlets, we find out how market design quietly shifts power, forces vendors into accidental lending, and rewards risk-taking over discipline.
