Week’s In Review: Green Thumb Secures $150 Million Syndicated Credit Facility; FDA Consideration of Psilocybin Therapy Could Impact Millions of Depression Patients; Cannabis Sector Volatility Deepens After DEA Rescheduling Delay

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#Green Thumb Secures $150 Million Syndicated Credit Facility: Green Thumb Industries Inc, a national cannabis consumer packaged goods company and owner of RISE Dispensaries, has announced the closing of a $150 million 5-year syndicated credit facility. The financing, led by Valley National Bank, marks a significant development in the U.S. cannabis industry, as it is the first such arrangement for the sector.

2# FDA Consideration of Psilocybin Therapy Could Impact Millions of Depression Patients: Recent research suggests that the active ingredient in psychedelic mushrooms, psilocybin, may offer significant benefits for individuals struggling with depression, pending approval from the U.S. Food and Drug Administration (FDA). With roughly one in 10 American adults experiencing depressive illness annually, the potential for psilocybin therapy to alleviate symptoms has garnered increasing attention.

3#Cannabis Sector Volatility Deepens After DEA Rescheduling Delay: The cannabis industry faced heightened volatility as the MSOS ETF (NYSE: MSOS), which tracks U.S. cannabis companies, dropped by 15.24% following the DEA’s decision to delay rescheduling cannabis until December 2. The market response reflects growing uncertainty within the sector, as investors had anticipated regulatory clarity that could unlock further growth opportunities for cannabis businesses.

4# California Intensifies Crackdown on Illegal Pesticide Use in Hemp Industry: California regulators have intensified efforts to address illegal pesticide use in the hemp industry, underscored by a recent case involving Northern California hemp grower Bin Zheng. The California Department of Pesticide Regulation (DPR) found Zheng using banned pesticides, leading to a settlement requiring the destruction of hemp crops across 22 greenhouses. This enforcement highlights ongoing concerns about the safety of cannabis products and the importance of regulatory oversight in protecting both consumers and the environment.

5# Medical Cannabis in Germany: A Gateway for Investment and Innovation: The investment climate in Germany’s medical cannabis industry is poised for significant expansion, driven by the global cannabis legalization movement, ongoing regulatory changes, and mounting community and market demand. As the country embraces a more liberal approach to cannabis, it is becoming an increasingly appealing destination for investors and businesses in the medical cannabis sector.

Psychedelic Sector Update

#1 MindMed to Present at Key September Investor Conferences: Mind Medicine (MindMed) Inc., a clinical-stage biopharmaceutical company focused on developing novel treatments for brain health disorders, announced its participation in three significant investor conferences in September 2024.

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