March 2026 Newsletter

Ohio — Senate Bill 56

Ohio's new law takes effect this March and significantly reshapes the state's cannabis landscape. By restricting intoxicating hemp products and THC beverages to licensed dispensaries, the state is eliminating unregulated competition from gas stations, smoke shops, and grocery stores. For licensed operators, this is a clear tailwind — driving more consumers back into the regulated market while reinforcing the value of existing retail footprints. As compliance tightens and supply channels consolidate, well-positioned dispensaries stand to benefit from increased demand and improved pricing power.

Texas — Smokable Hemp Crackdown

Texas regulators are set to effectively eliminate smokable hemp products — including THCA flower and pre-rolls — by enforcing a strict 0.3% total THC cap and significantly increasing licensing fees. With smokable products accounting for a large portion of revenue for many hemp retailers, operators are now facing a rapid market shift, forcing closures, pivots, or transitions into compliant business models. As demand persists and enforcement tightens, this regulatory shake-up is expected to accelerate consolidation and push consumers toward medical cannabis dispensaries in the state.

Own a hemp store or the property it sits on? Your location may already be properly zoned for a state-compliant cannabis dispensary. Texas's 15 medical cannabis licensees are actively seeking qualified retail properties to open medical dispensaries — and a former THCA smoke shop could be an ideal fit.

Contact us if you're interested in converting your THCA smoke shop property to a state-licensed cannabis dispensary.

Montana Cannabis Sales Surpass $1B Since Legalization

Montana — Adult-Use Market Milestone

Montana's adult-use cannabis market continues to outperform expectations, with retailers generating over $1 billion in sales since legalization began in 2022. Adult-use demand now accounts for nearly 90% of total sales, driving more than $217 million in tax revenue and signaling a clear shift away from the medical market. For operators and investors, Montana stands out as a proven, cash-flowing market with strong consumer adoption and stable regulatory footing, making it an increasingly attractive target for strategic acquisitions.

Virginia Sets Adult-Use Launch for 2027, Opening the Door for New License Opportunities

Virginia — Adult-Use Retail Launches January 1, 2027

Virginia lawmakers have finalized legislation to launch adult-use cannabis dispensary sales on January 1, 2027, marking a major step toward a regulated retail market in the state. The bill establishes a full licensing framework, tax structure, and regulatory oversight, while allowing existing medical operators to transition into adult-use. With Democrats back in control and the governor expected to sign, Virginia is now positioned to become the first Southern state to roll out a legal adult-use marketplace, creating a rare early-mover window for new entrants ahead of the next licensing round.

Interested in applying for a Virginia cannabis license in the upcoming application round this summer? Email Jade for more information!