Not So Super

Canna landlord and tenants clash.

Daily Recap

Innovative Industrial Properties disclosed three of its tenants and one loan borrower defaulted on their payments, which came two weeks after PharmaCann, IIPR’s single largest tenant, defaulted.

IIPR is taking a firm stance on lease agreements by refusing partial payments after the fallout with PharmaCann. This approach is aggressive, especially since the company has already seen a 16% reduction in base rents, the process of re-tenanting a property can take years and IIPR does not get the operating licenses.

27% of Innovative Industrial Properties’ rental and net operating income stream is now in default, representing an annualized revenue loss of $78M.

Czar Bar

President Donald Trump’s choice to serve as the next White House drug czar called medical cannabis a “fantastic” treatment option for seriously ill patients and said she doesn’t have a “problem” with legalization, even if she might not personally agree.

Trump picked Sara Carter to serve as director of the Office of National Drug Control Policy. The president said Carter has “been on the front lines of this International Fight for decades” and ” will lead the charge to protect our Nation.”

MO Better

The Missouri Department of Health transferred $23.4M from Missouri’s adult use cannabis program to the Missouri Veterans Commission for health care and other services for military veterans and their families, and to DHSS to increase access to evidence-based, low-barrier drug addiction treatment, overdose prevention, and to support job placement, housing, and counseling.

Texas Exes

Lt. Gov. Dan Patrick said he will move to force an overtime session of the Legislature if lawmakers fail to ban THC or tighten Texas’ bail laws — two of his top priorities — before the current session ends in early June.

In an interview, Patrick affirmed that he would go a similar route this session if the House declines to get on board with his priority bill to clamp down on the state’s exploding hemp market by banning products that contain THC.

Stocks & Stuff

The first quarter came to an end today and not a moment too soon for U.S. cannabis, which suffered another sickly three-month stretch. MSOS shed 31% of it’s market cap in 2025, a number that doubles down if we extend the lens to the November election.

Below, we’ll talk through the first quarter, look forward to Second Chances, finger the focus of the new drug czar, bucket several industry needs, offer random thoughts on the ongoing animus and try our best not to be a fool, at least not tomorrow.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ ETF Notional: $15M

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