Week In Review: Florida Supreme Court Greenlights Adult Use; Virginia Governor Vetoes Cannabis Legalization Bill; Colombia’s Medical Cannabis Exports Surge to $10.8 Million Amid Regulatory Enhancements

LOS ANGELES–Welcome to the far too-exciting world of cannabis and psychedelics, where it’s earnings season with updates from some of the leading MSOs outlined below, along with a helping of innovations and financial insights from the Cannabis and Psychedelic markets. This past week the Hall of Flowers event attracted many brands and companies from all over cannabis land to the Ventura County Fairgrounds. Check out our review of Hall of Flowers Ventura here.

Cannabis Industry Highlights

#1. Breaking Florida’s state Supreme Court greenlit an adult-use or hashtag recreational cannabis ballot measure bankrolled by MSO Trulieve. The measure requires 60% of the vote to pass.

#2Virginia Governor Vetoes Cannabis Legalization Bill: In a decisive move that prolongs the status quo, Virginia Governor Glenn Youngkin has vetoed a bill aimed at legalizing the sale of adult-use cannabis in the state, citing concerns over public health and safety. This action effectively maintains the illegal market’s dominance in cannabis sales, sidelining the establishment of a regulated legal market for another year.

#3. Amazon’s Hemp Product Dilemma: A recent study conducted by CBD Oracle has shed light on the problematic state of hemp product listings on Amazon, unveiling a landscape of mislabeled items, undeclared cannabinoids, and outright policy violations. Despite Amazon’s clear stance against the sale of hemp-derived cannabinoids, the investigation reveals that the online marketplace may not be as compliant with its own policies as previously believed.

#4. Colombia’s Medical Cannabis Exports Surge to $10.8 Million Amid Regulatory Enhancements: In a notable advancement for Colombia’s burgeoning medical cannabis industry, exports have seen a significant rise, reaching $10.8 million in 2023, as reported by ProColombia, a key government agency dedicated to fostering nontraditional Colombian trade. This growth marks an 11.3% increase from the previous year, signaling a promising trajectory despite the market not yet meeting initial expectations set by industry operators.

#5. Germany Ushers in a New Era with Adult- As the clock struck midnight in Germany, transitioning from March 31st to April 1st, the nation embraced a historic shift in its drug policy landscape. Germany’s new adult-use cannabis legalization law, known as the CanG law, officially came into effect, marking the country as the latest to join a growing list of nations reevaluating their stance on cannabis.

#6. Glass House Brands Sees Revenue and Profits Improve: In a notable financial turnaround, Glass House Brands, a California-based cannabis producer and retailer, reported significant growth in its fourth-quarter earnings, leading to a record revenue of $160.8 million for the fiscal year 2023. This represents an impressive increase, bolstering the company’s position in the competitive cannabis market.

Psychedelic Sector Update

#1.ICER Raises Concerns Over MDMA-Assisted Psychotherapy for PTSD: The Institute for Clinical and Economic Review (ICER) has recently highlighted significant concerns regarding the clinical evidence behind MDMA-assisted psychotherapy (MDMA-AP) for post-traumatic stress disorder (PTSD), according to a draft evidence report. This report marks the halfway point of an eight-month evaluation process conducted by ICER, a nonprofit organization known for its rigorous analysis of the value of health interventions. While the findings are preliminary, they shed light on potential issues within the clinical trials conducted by Lykos for its MDMA therapy.

Sector-Wide Developments

– Canopy Growth’s Retail Optimization: The closure of five Canopy Growth retail locations is a strategic decision aimed at enhancing operational efficiency. This move reflects the company’s efforts to streamline operations and focus on profitable growth areas, amidst the challenges of a competitive market.

– Aurora Cannabis Enters the U.S.: Aurora’s strategic acquisition to enter the U.S. market represents a significant milestone. By taking a majority stake in a leading U.S.-based CBD company, Aurora is not only diversifying its portfolio but also positioning itself to capture growth in the world’s largest cannabis market.

– Washington’s Tax Relief for Medical Cannabis: The elimination of the 37% tax on medical cannabis in Washington State marks a progressive step towards supporting medical patients and designated providers. This legislative change is expected to make medical cannabis more accessible and affordable, potentially setting a precedent for other states to follow.

– Pure Jamaican’s Global Ambitions: The initiative by Pure Jamaican and Seven Ten Limited to export pharmaceutical-grade cannabinoid products underscores Jamaica’s emerging role in the global cannabis market. Targeting major markets like the USA and Brazil, this move highlights the country’s potential as a key exporter of cannabis and hemp products.

– Cybin’s Funding Drive for Psychedelic Development: Cybin’s aim to raise $150 million through private placement underscores the growing investor interest in the psychedelic sector. These funds are earmarked for advancing the development of psychedelic drugs, indicating strong confidence in the therapeutic and commercial potential of psychedelics.

– Indiana’s Psilocybin Research Initiative: The state’s pending legislation to advance psilocybin research for mental health treatment highlights a growing recognition of the potential benefits of psychedelic substances. This initiative, particularly focused on veterans and first responders, could pave the way for broader acceptance and utilization of psilocybin in mental health care.

These developments across the cannabis and psychedelic sectors reflect a period of strategic repositioning, financial maneuvering, and innovative breakthroughs. As companies and states navigate regulatory, market, and scientific landscapes, the potential for growth and transformation in these industries continues to expand, promising exciting advancements in the near future.

Necann Boston is this week! March 22/23rd

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

Benzinga Cannabis  April 16-17; Hollywood Florida

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

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