Cannabis regulation and capital-market access lead today’s brief, with California advancing a cannabinoid bill while another multistate operator positions itself for a possible U.S. exchange listing. In entertainment, lawmakers proposed faster film-tax-credit refunds as the state works to keep production and jobs from leaving California.
California Legislature Sends Cannabinoid Cleanup Bill to Enrollment
California lawmakers unanimously approved Assembly Bill 2250, which would exclude qualifying cannabinol, or CBN, isolate from the state’s definition of cannabis concentrate. The Senate passed the measure 38-0 on August 25, and the Assembly concurred with Senate amendments in a 78-0 vote on August 26.
Beginning January 1, 2028, the proposed exception would apply to CBN isolate with greater than 99% purity and no THC or synthetic cannabinoids. The measure is designed to align the controlled-substances definition with previously enacted rules allowing highly purified CBD and CBN isolates in certain industrial-hemp products.
AB 2250 would also clarify seizure authority involving cannabis products at unlicensed premises and expand the activities expressly covered by California’s track-and-trace requirements. The bill is undergoing the Legislature’s enrollment process before it can be presented to Governor Gavin Newsom.
Why It Matters: Analysis: Although the CBN provision is largely a technical correction, the bill could provide greater certainty for manufacturers developing non-intoxicating cannabinoid ingredients. Its enforcement and track-and-trace provisions also reinforce California’s broader effort to tighten oversight of products moving between the hemp and regulated cannabis markets.
Source: California Legislative Information
Ascend Wellness Shareholders Approve Reverse Split for Potential U.S. Uplisting
Ascend Wellness Holdings shareholders approved a proposed reverse stock split during an August 28 special meeting, authorizing the company’s board to select a ratio between 1-for-10 and 1-for-50. Ascend has described the measure as a step toward satisfying share-price requirements for a potential listing on Nasdaq or NYSE American.
The multistate operator currently trades on the Canadian Securities Exchange and the OTCQX market. Its board retains discretion over the split’s ratio, timing and implementation, and shareholder approval does not guarantee that a national exchange will accept the company’s listing application.
Why It Matters: Analysis: Ascend’s vote is another sign that U.S. cannabis operators are preparing for wider access to domestic capital markets. A major-exchange listing could improve liquidity and institutional visibility, but federal restrictions, exchange policies and the economic effects of a reverse split remain material uncertainties.
Source: The Marijuana Herald
California Proposes Faster Film-Tax-Credit Refunds
California lawmakers unveiled amended language for Assembly Bill 186 on August 28, proposing changes to the state’s motion-picture tax-credit system. The measure would raise the refundable portion of qualifying Film and Television Tax Credit Program 4.0 awards from 90% to 95% and distribute refunds over two years instead of five.
The proposal would also extend the carryforward period for certain earlier-generation film credits to 15 years, subject to participation requirements during the additional years. Beginning with the 2027 tax year, qualifying credits sold by productions would be excluded from the state’s annual business-credit limitation.
AB 186 is a budget-related bill and had not completed the legislative process as of August 29.
Why It Matters: Analysis: Faster refunds could improve project cash flow and make California’s expanded production incentive more competitive with programs in other jurisdictions. The proposal does not remove every limitation facing major studios, but it could preserve more of the program’s near-term financing value for eligible productions.
Source: California Legislative Information
What We’re Watching
Over the next 24-72 hours, watch for final legislative action on AB 186, enrollment or gubernatorial movement on AB 2250, and any announcement from Ascend regarding the ratio or timing of its reverse split and prospective exchange application.
