Week In Review: Curaleaf Uplists; Ohio Senate Passes Bill Expanding Voter-Approved Cannabis Initiative; New York Intensifies Efforts to Combat Illicit Cannabis Shops with Increased Inspections & Seizures; Democratic Governors Urge President Biden to Expedite Cannabis Rescheduling by DEA

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

Financial News: Cannabis stocks are still getting an uplift from the August 29th, 2023 HHS rescheduling recommendation to Schedule I. The MSOS ETF reached a dazzling 9% increase before falling back in trading last week. Cash and investment has been flowing to the MSOs.

Curaleaf Holdings, Inc., (CURA;CURLF), has recently achieved a significant milestone in its financial journey. The company received conditional approval from the Toronto Stock Exchange (TSX) to list its subordinate voting shares, a move that marks a pivotal shift in its market presence. The final approval of this TSX listing is contingent upon Curaleaf meeting certain standard conditions set by the TSX. As part of this strategic transition, Curaleaf plans to voluntarily withdraw its shares from the Canadian Securities Exchange. This delisting is expected to be effective around the time its shares begin trading on the TSX.

Curaleaf’s decision to uplist on the TSX follows in the footsteps of TerrAscend Corp. (TSND), another multi-state operator (MSO) with business interests in both Canada and the United States. TerrAscend, led by Executive Chairman Jason Wild, made headlines earlier this year as the first American cannabis MSO to secure a spot on the Canadian exchange.

The move to the TSX represents a significant opportunity for Curaleaf. It opens doors to more substantial investors, an avenue that was previously limited due to the ongoing federal illegality of cannabis in the United States, which has kept Nasdaq and NYSE listings out of reach. Currently, Curaleaf, along with other cannabis MSOs like TerrAscend, are traded over-the-counter in the U.S.

In other news: Ohio recently joined 23 other states in legalizing recreational cannabis on December 7th. The law permits adults to have up to 2.5 ounces and grow six plants at home. However, lawmakers are already proposing changes like eliminating home growth, reducing possession limits, and increasing taxes. But in a new twist, the local Republicans want to channel the tax revenue away from social equity and into policing and the general fund for the State.

In Washington D.C., in a rare bipartisan move, lawmakers reintroduced the Marijuana Opportunity Reinvestment and Expungement (MORE) Act on December 8th. This federal bill aims to deschedule cannabis, letting states set their own policies. In New York, the Cannabis Control Board resolved lawsuits, allowing the state’s recreational cannabis market to launch. Multi-state operators (MSOs) are expected to enter the market in December, bringing experience and resources to help it grow.

#1. Ohio Senate Passes Bill Expanding Voter-Approved Cannabis Initiative: In a striking development, Ohio’s Republican-controlled Senate has passed a bill that significantly broadens the scope of the state’s voter-approved cannabis initiative, Issue 2. Contrary to initial fears of advocates, the amended legislation, Senate Bill 86, enhances the initiative, allowing adults to purchase cannabis from existing medical marijuana dispensaries within just 90 days. The bill also retains the right for home cultivation of cannabis plants and introduces an essential provision for the automatic expungement of certain past cannabis-related convictions.

#2. New York Intensifies Efforts to Combat Illicit Cannabis Shops with Increased Inspections and Seizures:  In a continued effort to regulate and control the cannabis market in New York, state agencies are intensifying their crackdown on illegal dispensaries. Alexander, in a recent press release, highlighted the importance of this initiative: “The number one remedy for the problem of these illicit shops is getting more legal businesses open. 

#3. Democratic Governors Urge President Biden to Expedite Cannabis Rescheduling by DEA: A coalition of Democratic governors from six states has formally requested President Joe Biden to ensure the Drug Enforcement Administration (DEA) reclassifies cannabis before the end of 2023. The group’s call to action, detailed in a letter sent on December 5, reflects a growing urgency for federal alignment with evolving state-level cannabis policies.

Psychedelic Market Highlights:

#1. Beckley Retreats Launches Psychedelic Scholarship Initiative. Beckley Retreats introduces a groundbreaking scholarship program, aiming to diversify access to psychedelic experiences. The initiative, running through 2024, offers fully-funded placements for 100 individuals, prioritizing those with financial need and from historically underserved communities. Exclusive retreats for women, veterans, and the BIPOC community in Jamaica and the Netherlands are planned for 2024.

Neil Markey, Co-founder and CEO, underscores the commitment to accessibility and community impact, aligning with their mission as a Public Benefit Corporation. The 11-week program includes virtual preparation, a week-long retreat with psychedelic ceremonies, and post-retreat integration sessions.

Vian Morales, SVP of Operations, highlights the program’s significance in prioritizing inclusivity and equity, creating transformative experiences in the psychedelics sector. Beckley Retreats continues to lead in the realm of holistic well-being under the guidance of Amanda Feilding, the “Queen of Psychedelics.”

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.