Week In Review: MedMen Winds Up Wound Up; U.S. & State Legislators Address Diverse Cannabis-Related Issues; Study Finds THC Increases Survival Time in Palliative Patients; Dutchie Falls Over on 420…Again

LOS ANGELES–Welcome to the far too-exciting world of cannabis and psychedelics, where it’s a tale of two markets with some states doing amazingly well. And some, well…they’re not doing so well (hello New York). Let’s get to it!

Cannabis Industry Highlights

#1. U.S. and State Legislators Address Diverse Cannabis-Related Issues: Recent legislative developments across the United States reflect a broad spectrum of approaches to cannabis-related issues, from medical use and public safety to regulatory and expungement processes. These actions signify ongoing, nuanced dialogues within federal and state governments concerning the status and management of cannabis.

#2. Study Finds THC Increases Survival Time in Palliative Care Patients: A recent study conducted by German researchers has found that tetrahydrocannabinol (THC) may significantly extend the survival time of ambulatory palliative patients. Published in the peer-reviewed journal Medical Cannabis and Cannabinoids, the study explores the effects of THC on patients who typically receive it to improve sleep quality, appetite, and to reduce anxiety, stress, and pain.

#3. California Moves Closer to Legalizing Cannabis Cafés: The Colorado Senate recently approved SB24-158, legislation aimed at intensifying regulations on social media content concerning cannabis, psychedelics, and hemp products. This bill, met with a significant debate over free speech and the regulation of digital content, is poised to reshape how such substances are discussed online within the state.

#4. Louisiana Committee Advances Cannabis Regulatory Framework Bill: The Louisiana House Health and Welfare Committee has unanimously passed House Bill 707, setting the stage for a comprehensive regulatory framework for recreational cannabis use. Introduced by Rep. Edmond Jordan, the bill aims to establish foundational elements for future legislation that would fully legalize and regulate adult-use cannabis in Louisiana.

#5. MedMen Files for Bankruptcy, Assets Placed in Receivership. One the darling of investors in cannabis, MedMen Enterprises has declared bankruptcy in Canada, announcing the decision on April 24 amid escalating financial troubles. With liabilities amounting to C$561 million ($410.4 million), the cannabis company has appointed B. Riley Farber Inc. as the bankruptcy trustee. A meeting for bankruptcy creditors is scheduled for May 14 via a Zoom video conference. More info here.

#6. Dutchie Falls Over on 4/20…again.  On April 20th, the cannabis community celebrates a day of significance – a day marked not only by camaraderie but also by substantial commercial activity. However, this year’s 4/20 brought a bitter experience for many retailers relying on the Dutchie e-commerce system.

According to reports by MJBizDaily, Dutchie’s point-of-sale (POS) software experienced widespread outages, leaving cannabis businesses grappling with operational disruptions during one of their busiest days. From Michigan to Oregon, retailers faced challenges as the Dutchie POS system crashed for several hours, impeding both online and in-store purchases.Read our story here.

Psychedelic Sector Update

#1 DEA Challenges Right to Try Psilocybin Use in Court: The U.S. Drug Enforcement Administration (DEA) has requested a federal appeals court to refuse Dr. Sunil Aggarwal’s application to use psilocybin for terminally ill patients, citing the Controlled Substances Act (CSA) which does not allow exemptions under Right to Try laws. Dr. Aggarwal, who leads the Advanced Integrative Medical Science Institute in Seattle, has sought permission to provide psilocybin, a compound found in magic mushrooms, to patients as a treatment for conditions such as depression and anxiety.- Cybin’s Funding Drive for Psychedelic Development:

#2. 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.

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.

– 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.

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