Week In Review: Hawaii Lawmakers Renew Push to Legalize Adult-Use Cannabis with Constitutional Amendment Proposal; PharmaCann Defaults on Innovative Industrial Properties Leases; Florida’s Cannabis Market Sees Shift as Smaller Operators Capture Market Share

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) Hawaii Lawmakers Renew Push to Legalize Adult-Use Cannabis with Constitutional Amendment Proposal: Hawaii lawmakers introduced House Bill 519, proposing a constitutional amendment to legalize recreational cannabis for adults aged 21 and over. The bill seeks to amend Article IX of the Hawaii State Constitution, allowing individuals to possess and use cannabis, while granting the legislature authority to regulate its possession, distribution, use, and taxation.

#2)PharmaCann Defaults on Innovative Industrial Properties Leases: On December 19, 2024, PharmaCann Inc., a privately held and vertically integrated cannabis company, defaulted on its December rent obligations for six of the eleven properties leased from Innovative Industrial Properties, Inc. (IIP). These properties are located in Illinois, Massachusetts, Michigan, New York, Ohio, and Pennsylvania, with the unpaid rent totaling $4.2 million.

#3) Florida’s Cannabis Market Sees Shift as Smaller Operators Capture Market Share: In Florida’s evolving medical cannabis landscape, smaller operators are making significant inroads, challenging the dominance of established multi-state operators (MSOs). Despite the state’s stringent vertical integration requirements—which mandate that Medical Marijuana Treatment Centers (MMTCs) oversee cultivation, processing, and dispensing—these emerging players are finding ways to thrive.

#4) PharmaCann Defaults on Innovative Industrial Properties Leases: On December 19, 2024, PharmaCann Inc., a privately held and vertically integrated cannabis company, defaulted on its December rent obligations for six of the eleven properties leased from Innovative Industrial Properties, Inc. (IIP). These properties are located in Illinois, Massachusetts, Michigan, New York, Ohio, and Pennsylvania, with the unpaid rent totaling $4.2 million.

#5) Tacoma City Council Decriminalizes Natural Psychedelics.:The Tacoma City Council in Washington State unanimously approved a resolution to decriminalize natural psychedelics, including substances containing tryptamines, phenethylamines, and indolamines. This legislative action designates the enforcement of laws against these entheogenic substances as among the city’s lowest law enforcement priorities. The resolution also advocates for decriminalization at both the state and federal levels.

#7)Awakn Life Sciences Secures $535,000 Credit Facility to Advance Addiction Treatment Programs.:Awakn Life Sciences Corp. a clinical-stage biotechnology company focusing on treatments for substance use and mental health disorders, has secured an unsecured credit facility of up to US$535,000 from an arm’s length creditor. This facility allows the company to draw funds in multiple advances, with the principal due on December 5, 2026, and bearing an annual interest rate of 10%, payable at maturity.

#8)Indiana House Blocks Cannabis Reclassification: On January 27, 2025, the Indiana House of Representatives voted down an amendment to House Bill 1056 that sought to remove cannabis from the state’s list of Schedule I controlled substances. The amendment, proposed by Representative Kyle Miller (D-Fort Wayne), aimed to reclassify cannabis, thereby initiating discussions on its potential legalization within Indiana.

#9)Rastafarians Lead Caribbean Cannabis Boom: In recent years, St. Vincent and the Grenadines (SVG) has witnessed a transformative shift in its cannabis industry, particularly benefiting Rastafarian farmers who have long regarded the plant as sacred. Historically, these cultivators faced significant challenges, including the destruction of their crops during U.S.-backed anti-narcotics operations. As cannabis gains global recognition for its medicinal properties, SVG is positioning itself as a key player in the medicinal cannabis market.

Psychedelic Sector Update

1#) Rhode Island Proposes Psilocybin Legalization and State-Regulated Therapy Program Pending Federal Rescheduling:In January 2025, Rhode Island lawmakers introduced House Bill 5186, aiming to legalize psilocybin possession and cultivation for personal use. The bill proposes that individuals be allowed to cultivate psilocybin within their residences for personal use. Additionally, contingent upon the U.S. Food and Drug Administration (FDA) rescheduling psilocybin and expanding its access program, the Rhode Island Department of Health would be mandated to establish rules and regulations for its cultivation, distribution, and medical prescription.

2#)European Citizens Launch Initiative to Promote Psychedelic-Assisted Therapies: A coalition of healthcare professionals, academics, and advocates has initiated the PsychedeliCare European Citizens’ Initiative (ECI), aiming to enhance access to psychedelic-assisted therapies across the European Union. The campaign seeks to collect one million signatures from at least seven EU member states by January 2026, compelling the European Commission to consider legislative action.

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