Week In Review: Ohio Says Yes! To Adult Use; Cannabis Sugar Daddy BAT Doubles Down on Organigram; Could Florida Follow Ohio? Cybin’s Clinical Trial Indicates Promising Results

LOS ANGELES–Welcome to the far too-exciting world of cannabis and psychedelics, where it’s a tale of two markets: there’s innovation and progress in full swing in some parts of the country, while in other parts, the industry is on the ropes largely due to collapsing cannabis prices and lack of access to capital, making cannabis business models very challenging.  This week’s ‘Week In Review’ is a roundup of key developments in the industry, showcasing the news from key companies and people making news in the space.

Weekly Overview: Developments in the Cannabis and Psychedelic Sectors

Latest news:It was earnings week this past week and frankly there’s nothing going on but the rent. Most MSOs are full of debt in the USA and most Canadian LPs are still struggling.

#1.Ohio Joins the Green Wave with Legalization of Adult-Use Cannabis: In a historic move mirroring a national shift, Ohio voters have chosen to green light the legalization of adult-use cannabis, making it the latest state to adopt a more progressive stance on the once controversial cannabis plant.

The passage of Issue 2 during the recent election, with a 56.97% majority, signals a remarkable change in attitude since the rejection of a similar measure in 2015. Ohio now takes its place alongside 23 other states in the reform movement, crafting a new chapter in the Ohio Revised Code that enables adults 21 and over to purchase, possess, and even cultivate cannabis at home, subject to legislative oversight.

An Ohio State University study estimates the potential annual tax revenue from legalizing cannabis ranges from $276 million to $403 million in year five of an operational cannabis market.

#2. Organigram Sugar Daddy, B.A.T. stumps up even more cashola, doubling down on cannabis: British American Tobacco is once again increasing its investment in Canadian cannabis producer Organigram Holdings, this time deepening their partnership through an injection of 124.6 million Canadian dollars ($92.5 million). The latest move comes after British American Tobacco (BAT) invested CA$6.35 million in the Atlantic Canada-based cannabis company in 2022 and an initial CA$220 million in 2021.

#3 Could Florida follow Ohio in being next to legalize adult-use Cannabis? As the Florida Supreme Court deliberates their recreational ballot measure, the fate of recreational cannabis in the Sunshine State hangs in the balance. Should the initiative proceed to the ballot, it would require a resounding 60% approval from voters to amend the state constitution. The outcome remains uncertain, leaving Floridians and stakeholders in suspense regarding the future of recreational cannabis in the state. Read our story here.

#4. Biden’s Policy Shift Sets a New Course for Cannabis Industry: President Joe Biden, a figure once notorious for his stringent anti-drug stance, has evolved into an unlikely catalyst for the most substantial overhaul of federal cannabis policy since the Controlled Substances Act was enacted in 1970. This shift could mark another surprising twist in his extensive political narrative.

#5.Planet 13 Endures Market Shifts with Strategic Expansion Amidst Revenue Decline: Planet 13 Holdings Inc., a vertically-integrated, multi-state cannabis operator, announced its financial results for the third quarter ending September 30, 2023. According to the U.S. Generally Accepted Accounting Principles (GAAP), Planet 13’s revenues saw a slight downturn, with a 3.3% decrease from the same quarter in the previous year, amounting to $24.8 million. 

Psychedelic Market Highlights:

#1. Cybin’s Clinical Trial Indicates Promising Results for Psychedelic’s Use in Mental Health Treatment: Canadian biopharmaceutical firm, Cybin, has shared promising results from a clinical trial suggesting the potential of psychedelic compounds in treating mental health issues. The company’s focus on developing advanced psychedelic therapeutics has yielded a significant milestone with their proprietary compound, CYB003.

#2. California DCC Declares National Agricultural Workers Union Not a Legitimate Labor Organization: The California Department of Cannabis Control (DCC) has made a definitive clarification this week, stating that the National Agricultural Workers Union (NAWU) does not qualify as a bona fide labor organization. This announcement comes amid ongoing investigations and reports that the NAWU is one of several “fake” unions in the cannabis industry.

• MJBizCon is the next big event with thousands expected to attend MJBizCon which has become the biggest conference in cannabis in the world (Nov 28-Dec 1st) use 23HCN10 for a double digit ticket discount.
• Rachelle Gordon, frequent contributor for Beard Bros and Senior Editor at GreenState, has an easy to view sheet of all the PARTIES in MJBizCon, a sheet she continually updates. Check out Event-Hi here too.
• Check out the short video here showing attendees at the women-only event called the Blunt Brunch gather for a photograph here.  The Blunt Brunch was in San Diego, and their next big Blunt Brunch is at MJBizCon. Blunt Brunch is an excellent support network for women entrepreneurs. Find out more about their next events in the coming weeks here.

Stay tuned to Highly Capitalized for more updates as the cannabis and psychedelic industries continue to shape the future at the intersection of wellness and innovation. Subscribe to our newsletter and follow us on LinkedIn.