In the latest Trade To Black podcast presented by Flowhub, hosts Shadd Dales and Anthony Varrell recount the final day of the DEA administrative law judge’s hearing, which surprisingly ended at 12pm Eastern and without any last-minute fireworks; Washington Correspondent Gretchen Gale was reporting from the courtroom at John Malonet and the Standard. With the record now closed, all attention shifts to the ALJ’s recommendation.

Now that the hearing is over, Gale has gone through state testimony filed as a joint district from Nebraska, Idaho and Indiana, which brought two witnesses to bolster their opposition to redistricting. The first was Dr. Deepak D’Souza, a VA psychiatrist and Yale School of Medicine professor who directs the Yale Center for Cannabis and Cannabinoid Science. He focused on the psychiatric side, arguing that existing studies are too limited in scope and rigor to support medical use, and that cannabis carries an increased risk of schizophrenia in genetically predisposed individuals. Dales and Varell pushed back on the shots, drawing parallels with alcohol and predispositions, and argued that a small subset should not disqualify reassignments. A second witness, Sheriff William Honsall of Humboldt County, challenged the idea that legalization is the fastest way to eliminate the illegal market, citing California’s Emerald Triangle and Oklahoma. Varrell countered that these were failures of inconsistent federal guidelines, not arguments against realignment;

Gailey said the judge remains busy and has focused the proceedings on whether hemp meets Schedule III criteria, barring environmental impacts. He read. Prohibitors, including SAM, have not filed their case. Closing arguments at the deadline will be presented in writing on a schedule the judge has yet to set, and he’s betting on October, not the end of the month that some floated; a view reinforced by a built-in 25-day minimum before any recommendation can be made.

In the second section, Malone laid out the ALJ’s role as a neutral finder of fact, creating a defensible record for potential appeals and litigation to follow. He argued that Schedule One is indefensible given the accepted medical uses, that whole-plant botanical cannabis does not fit neatly into Schedule Three or the FDA framework, and that HHS’s substantive recommendation is substantial. He and the hosts explored where pharmaceutical companies fit in, mostly in isolated compounds and extracts rather than the state-regulated market, and pointed to the coming friction between federal planning and state-licensed dispensaries that already dispense cannabis. Malone’s conclusion. the biggest prize is 280E relief.

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In the latest Trade To Black podcast presented by Flowhub, host Anthony Varrell welcomes two heavyweight guests, FundCanna CEO Adam Stettner and renowned short seller and activist investor Mark Codes, to discuss cannabis lending, early redemptions, short selling and the future of the cannabis industry.

In the headlines: Senators Booker, Schumer and Wyden reintroduced the Hemp Governance and Opportunity Act. In psychiatry, Eli Lilly agreed to acquire AtaiBeckley in a deal worth about $2.8 billion and up to $3.8 billion in milestones, confirming a long-held thesis that big pharma would eventually capture the herbal medicine bid, even though the structure wasn’t particularly favorable for retail. COMPASS Pathways and Definium Therapeutics remain the other horses in the race.

In the first segment, Stettner looked back at market lending data from across the industry, explaining what carriers are borrowing for, the state markets are strong and what the numbers portend for the 2Q earnings season. He said the biggest surprise of the ALJ hearings was that there were no bombshells, almost boring formalities, where the federal government’s military presented really good evidence for the medical value of cannabis, while the opposition offered little substance. He then explained the mechanics of the early repayment cycle. FundCanna payouts are running at 97.8 cents on the dollar, versus a typical range of 94 to 97, with a faster capital cycle over the past two months, signaling healthier operators looking to scale post-schedule. He argued that the sector was being valued as if it was dead and that 280E relief plus Treasury guidance would fundamentally change these businesses.

In part two, Codex spoke out ahead of the federal hemp ban that takes effect Nov. 12, arguing for a one-plant, one-rule rule, that intoxicating hemp and cannabis are the same product, that synthetics should be banned, and that age restrictions, tracking and taxation should govern both. Driving pushed back if the hemp route survives the schedule at all, and they’ll explain where they split. Codes also detailed how short sellers can distort small-cap stocks through outright shorting, fraud and manipulation, reflected on Glass House Brands (NYSE: GLAS ) and previewed the company’s Aug. 28 call on the NYSE as the second U.S. plant operator to go public.

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Shadd Dales and Anthony Varrell have just returned from Arlington, Virginia and have been through an already fast paced week in the cannabis industry. Michael Bronstein returns to his weekly Insiders Edge segment as the DEA Administrative Law Judge (ALJ) hearing enters its second final day. We also discuss Curaleaf’s two announcements, the movement in the psych space, and what’s needed from the US Treasury.

In the headlines, Curaleaf (TSX: CURA, OTCQX: CURLF) became the first company to secure registration in Spain for standardized THC-dominant and CBD-dominant cannabis preparations, enabling hospitals to provide medical cannabis in Spain’s emerging national medical framework. The company already operates an EU-GMP facility and research laboratory in Alicante, adding to an international footprint that includes Germany, the UK, Portugal and Poland.

Curaleaf also announced a long-term international supply agreement with Cannara Biotech (TSX: LOVE , OTCQX: LOVFF ), positioning Cannara as a key primary flower supplier for Curaleaf’s expanding global medical markets, with a potential value of up to C$21 million. Cannara operates the approximately 1.6 million square foot Valleyfield facility, which was acquired from TGOD for $27 million; pennies on the dollar for a build that reportedly cost much more.

AtaiBeckley is up roughly 20% in the markets on the rumors, and we’ve announced an upcoming interview with Definium Therapeutics (NASDAQ: DFTX ) CEO Rob Barrow about the company’s trials and timelines.

Bronstein delivered his reading during the ALJ hearing, with testimony from Nebraska, Idaho and Indiana continuing, and the trial ending tomorrow. The opposition has no evidence, and their case is based on process, not science. Bronstein expects a post-administration trial in the D.C. Circuit, noting that adversaries cannot litigate there and arguing that asking the court to invalidate the process by two rival presidential administrations is too hard a sell.

Bronstein also broke down the states’ main talking points: a challenge to the Administrative Procedure Act, treaty obligations under the Uniform Convention and the claim that Schedule III gives cannabis companies an unfair advantage over pharmaceutical developers. He dismantled the pharmaceutical angle as the straw built inside hemp’s own echo chamber and had a pointed answer about whether treaty reform was overdue. On capital markets, Bronstein pointed to ATACH’s Capital Markets Council and said Treasury guidance is the domino that moves everything.

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