Week In Review: Germany Legalizes Cannabis in Limited Way; Numinus Wellness Secures $6 Million in Public Offering to Fuel Psychedelic-Assisted Therapy Initiatives: New York Cannabis Control Board Advances with Adult-Use Licenses and Research Initiatives: Illinois Takes Bold Step Towards Psilocybin Therapy Legalization with the CURE Act

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.

Capital Markets

The US cannabis stocks showcased their resilience as the MSOS ETF bounced back from a two-week dip, soaring by 6.77% over the abbreviated four-day trading week. This surge reflects the growing interest among investors in the US cannabis sector, with the MSOS ETF boasting a significant year-to-date (YTD) increase of 37.23%. Reliable data from esteemed financial platforms validate the distinctive trajectory of the US-focused MSOS ETF, providing insight into current market sentiments. Against the backdrop of regulatory discussions and evolving legislative landscapes, the MSOS ETF stands out as a focal point for investors eyeing substantial returns, fueled by its impressive YTD growth and the potential for regulatory reforms.

Business News

#1 Germany Says Yes to Limited Adult-Use: The German parliament has made a historic move by passing the Cannabisgesetz (CanG), a law that introduces a regulated cannabis market for recreational use, signaling a significant shift from the nation’s previous stringent drug policies. The vote saw a clear majority, with 406 in favor and 226 against, reflecting a broad consensus on the need for reform. CanG allows adults to buy and possess cannabis in limited amounts, establishing a legal framework for its production and sale, yet with careful restrictions to address public health and safety concerns.

This legislation represents Germany’s response to the global trend towards rethinking cannabis prohibition, aiming to dismantle the black market while safeguarding consumers. Despite the law’s cautious approach, which includes measures to prevent underage use and impaired driving, it has sparked a debate over potential public health implications. The government, in response, promises targeted education and prevention programs to mitigate risks.

By adopting CanG, Germany joins a growing list of countries reevaluating their cannabis laws, navigating the complex balance between economic opportunity, public health, and social justice. This move marks a pivotal moment in the country’s approach to drug policy, embracing a more evidence-based and humane strategy.

#2 New York Cannabis Control Board Advances with Adult-Use Licenses and Research Initiatives: In a pivotal move to advance the state’s cannabis industry, the New York Cannabis Control Board (CCB) approved the first round of adult-use cannabis business licenses and introduced draft rules for home cultivation. The board’s actions, taken during their meeting on February 16, signal a significant step forward in regulating and expanding access to cannabis within the state.

#3. Benzinga LA Summit was newsworthy for two main reasons: Kyle Kazan of mega cultivator Glass House Brands Inc, came out strongly for descheduling in his talk at the Benzinga Market Spotlight, held last week in the venue, BioscienceLA. Kyle’s support is significant as most want to move past simple rescheduling (from Schedule I to Schedule III) to descheduling cannabis entirely. Also present was Catalyst CEO Elliot Lewis who decried investors not doing their due diligence and asking questions about where the production of some of the bigger grows like Glass House go? Elliot felt it could well be that the legal grows are supplying the illicit market. Glass House Brands denied any illicit market acitivty. This is a long-running debate between Elliot and Glass House Brands, and it doesn’t look like it’s going away anytime soon.

See our review of the Benzinga Market Spotlight here.

Psychedelic Market Highlights:

#1. Numinus Wellness Secures $6 Million in Public Offering to Fuel Psychedelic-Assisted Therapy Initiatives: Numinus Wellness, a Vancouver-based healthcare company specializing in the innovative field of psychedelic-assisted therapies, has announced the successful completion of a significant financial milestone. Through a “bought deal” public offering, the company has raised $6 million, a move that positions it strongly within the burgeoning sector of mental health care.

#2. Illinois Takes Bold Step Towards Psilocybin Therapy Legalization with the CURE Act: In an ambitious move to address the growing mental health crisis, Illinois State Senator Rachel Ventura has introduced the Compassionate Use and Research of Entheogens (CURE) Act, a legislative proposal aimed at legalizing the supervised therapeutic use of psilocybin. This initiative represents a significant step towards incorporating psychedelic substances into mainstream mental health treatment protocols.

#3. FSD Pharma Announces Market Offering Agreement to Fund Research and Development: FSD Pharma a biopharmaceutical company focused on developing a diverse portfolio of innovative assets and biotechnological solutions, has unveiled a strategic market offering agreement with H.C. Wainwright & Co. LLC. This collaborative effort paves the way for FSD Pharma to potentially offer and sell up to $11,154,232 in Class B subordinate voting shares at its discretion, marking a significant step in the company’s financial and developmental strategy.

Highly Capitalized announce coverage and/or filming at the following upcoming events:

Hall of Flowers Cannabis brands & business exposition March 13 & 14; Ventura, California

InternationalCBC Cannabis business exposition 14 March, Barcelona Spain

The Cannabis Summit European Cannabis networking event; 11-12 April 2024

More dates are added regularly so follow Highly Capitalized for more information.

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