Week’s In Review: New York Cannabis Market Report Highlights Progress and Challenges; TerrAscend Secures Additional $26 Million in Loan Draw to Pay Down High-Interest Debt; Harris’s Comments Over Cannabis Reform in the 2024 Presidential Race; FBI Data: Over 200,000 Arrests for Cannabis Possession in 2023

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#New York Cannabis Market Report Highlights Progress and Challenges: New York state officials released a comprehensive report this week, reviewing the progress made in the three years since the state’s cannabis legalization law was signed by then-Governor Andrew Cuomo in 2021. The Office of Cannabis Management (OCM) and the Cannabis Control Board (CCB) outlined the development of the legal cannabis market, emphasizing both the successes and the challenges faced during the rollout.

2#TerrAscend Secures Additional $26 Million in Loan Draw to Pay Down High-Interest Debt: TerrAscend Corp. a North American cannabis company, has completed a second draw of $26 million as part of its senior secured term loan, bringing the total gross proceeds to $140 million. The loan, managed by FocusGrowth Asset Management, LP, and other syndicate members, was originally announced in August 2024. This recent capital will be used to pay off higher-interest debt in Michigan.

3#Harris’s Comments Over Cannabis Reform in the 2024 Presidential Race : Harris’s comments come amid a broader debate over cannabis reform in the 2024 presidential race. While Democratic vice-presidential nominee Tim Walz has suggested that cannabis legalization should be handled by individual states, Harris’s stance signals a push for federal-level reform. Walz has emphasized the need for incremental steps, such as allowing veterans access to medical cannabis and passing cannabis banking legislation.

4#FBI Data: Over 200,000 Arrests for Cannabis Possession in 2023: Despite growing momentum for cannabis legalization in the U.S., over 200,000 people were arrested for cannabis possession in 2023, according to new data from the FBI’s Uniform Crime Reporting system. The report, which covers 94% of the U.S. population, shows that 84% of the cannabis-related arrests were for possession alone.

5# StateHouse Goes Into Receivership With $100 mm In Debt: Pelorus Fund REIT has filed a request with a California court to place StateHouse Holdings, a vertically integrated cannabis operator, into receivership following the company’s default on four loans. Pelorus, a private mortgage real estate investment trust (REIT) and the largest lender to StateHouse, expects the company’s management to support the move.

Psychedelic Sector Update

6#Psyence Biomed to Acquire Stake in PsyLabs for $1.1 Million: Psyence Biomedical Ltd. announced its agreement to acquire an 11.13% stake in PsyLabs, a company specializing in psychedelic active pharmaceutical ingredients (APIs) and extracts, in exchange for $1.1 million worth of common stock. This transaction strengthens Psyence Biomed’s partnership with PsyLabs, providing access to PsyLabs’ production capabilities as the company advances its clinical pipeline.

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