Hemp, Hope And Hard Truths: A New Era Of Realism At Benzinga’s Chicago Summit – Gold Flora (OTC:GRAM), 4Front Ventures (OTC:FFNTF)

The cannabis industry met itself in the mirror last week in Chicago and what it saw was a sector growing wiser, not just older. At the 2025 Benzinga Cannabis Capital Conference, held June 8–10 at the Marriott Magnificent Mile, hundreds of investors, executives, advocates and analysts gathered to trade insights, air frustrations and, above all, connect. And while the usual dreams of federal reform still floated through the halls, this year’s tone was something different: grounded, battle-tested and just a little bit more mature.

Jesse Redmond: A View From The Floor

Jesse Redmond, head of investor relations at LEEF Brands LEEEF and co-host of the Higher Exchanges podcast, summed it up in three takeaways:

Packed rooms, new faces: Despite a shifting cast—”less of the old guard,” as he put it—the event was full of energy and opportunity.
Capital mismatch: “More asks, fewer gives,” he noted, highlighting the scarcity of deployable funds in an environment where investor caution now outweighs hype.
Strategic wins: For LEEF, timing is everything. Its Tier 1 New York license announcement coincided with the event, leading to real conversations about brand partnerships, real estate and bicoastal expansion.

Redmond wasn’t alone in noticing the capital crunch. As A.G.P. / Alliance Global Partners wrote in their post-event memo, even cash-flow-positive companies are being cautious. Others, like 4Front FFNTF and Gold Flora GRAM, have already gone into receivership. And yet, for well-positioned operators, the shakeout could spell acquisition opportunity.

Todd Harrison: Behind The Smoke, A Smoldering Movement

Veteran cannabis analyst and CB1 Capital founder Todd Harrison took a wider lens. In his Cannabis Confidential newsletter, he acknowledged the sector’s harsh reality—five years into a brutal bear market, stuck in the gray zone between state legality and federal limbo.

“THC and cannabinoid consumption is far from stagnant,” he wrote, noting that the real issue is bifurcation: hemp cannabinoids running wild, often unregulated, while cannabis operators carry the tax, testing and legal burden. Texas, in particular, has become a national test case, with bills that could either ban or redefine hemp-derived THC in ways that ripple across the U.S.

Harrison also captured the unspoken vibe in the room: don’t jinx it. The people actually working to move cannabis reform forward—lobbyists, policy insiders, even big MSOs—aren’t talking about it publicly. Hope is real but fragile.

“Less is more until there’s something to say.”

Still, he left Chicago optimistic: Schedule III rescheduling is plausible this year, especially if political winds align before midterms. SAFEST banking, STATES 2.0 and the PREPARE Act all sit on the sidelines, ready to run…if Trump decides cannabis reform is worth the political lift.

Realism, Restructuring And Resilience

Freddy Benson Gomes of ATB Financial echoed this mood: “Realism has taken over.” Gone are the wide-eyed predictions. Operators are focused on survival—tightening costs, streamlining operations and, above all, generating cash flow.

M&A? Not yet. “Most companies simply don’t have the cash,” wrote Gomes. Consolidation could come later, especially if rescheduling provides a runway or if lenders stop extending deadlines and start calling in notes.

On the tax front, 280E avoidance is now widespread, though many expect the IRS to respond. The likely outcome? Settlements and discounts rather than scorched-earth enforcement.

The Hemp Wild Card

If there was one issue that united everyone—MSOs, LPs, analysts, regulators—it was hemp. The flood of intoxicating hemp-derived products, thanks to loopholes in the 2018 Farm Bill, continues to distort the market.

Operators want synthetic THC products gone. Beverages? Mixed feelings. As Harrison wrote, hemp could ultimately be the “un-gating catalyst” that forces the federal government to reconcile its contradictory treatment of cannabis vs. hemp.

Looking Abroad

International expansion continues to excite publicly traded LPs. Germany may soon hit $1 billion in medical sales. Village Farms VFF, Organigram OGI, and others are well-positioned. But as Gomes notes, most U.S. MSOs are still just watching.

Mission Green: Reform With A Face

No Benzinga event is complete without its emotional core. For many, that was the Mission [Green] Executive Dinner, hosted by Harrison and supported by Weldon Angelos, Kim Rivers and a who’s-who of cannabis champions. What started as a thank-you has become a galvanizing tradition for criminal justice reform.

“The people—and yes, the products—combined for a memorable evening that forged new friendships, talked through tough topics and drove support for Mission Green,” Harrison wrote in his newsletter.

Final Puff

Chicago reminded us of something essential: the cannabis industry is still here. Wounded, maybe…frustrated, definitely. But also determined, smarter and more collaborative than ever.

Whether or not federal reform arrives in 2025, the people building the next version of this industry are already hard at work.

See you in Anaheim, California, on October 8 for our next event. Get your tickets here now.

Photo: Javier Hasse