Week In Review: States Propose Cannabis Tax Hikes Amid Industry Pushback; British American Tobacco Invests $86.8 Million in Organigram; Canopy Growth’s Stock Declines Amid Share Sale Plans

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) States Propose Cannabis Tax Hikes Amid Industry Pushback: In Michigan, Governor Gretchen Whitmer’s recent $3 billion infrastructure plan includes a proposal to close a cannabis tax loophole, potentially generating an additional $470 million for road repairs.This move has alarmed local dispensary owners, who fear that higher taxes could lead to business closures and drive consumers toward unregulated markets. The state’s cannabis industry, legalized for recreational use in 2018, reported sales exceeding $3.29 billion last year, marking a 7.6% increase from 2023.

#2) British American Tobacco Invests $86.8 Million in Organigram: British American Tobacco (BAT), one of the world’s largest tobacco companies, has finalized a strategic investment of approximately $86.8 million (C$124.6 million) in Organigram Holdings Inc., a prominent Canadian cannabis producer. This investment, executed through BAT’s subsidiary, BT DE Investments Inc., increases BAT’s stake in Organigram to 30% of common shares and grants it 100% ownership of non-voting preferred shares.

#3) Canopy Growth’s Stock Declines Amid Share Sale Plans: Canopy Growth Corporation’s stock declined by 9% to a historic low of $1.26 per share following the company’s announcement to issue up to $200 million in new shares. This move aims to bolster the company’s financial position for general corporate purposes, including debt repayment and potential acquisitions.

#4) Massachusetts Cannabis Sales Surpass $8 Billion: Massachusetts’ legal cannabis industry has achieved significant milestones since the commencement of adult-use sales in November 2018.As of December 2024, adult-use marijuana establishments have reported cumulative gross sales exceeding $7 billion. When combined with medical cannabis sales, which have generated approximately $1.4 billion since December 2018, the total cannabis sales in the state have surpassed $8 billion. ​

#5) Colombian President Renews Call for Cannabis Legalization: Colombian President Gustavo Petro has called on Congress to legalize cannabis cultivation as part of an effort to reduce the violence associated with drug trafficking in the country. Petro argues that the prohibition of cannabis has contributed to rising criminal activity and that regulation could serve as a tool to combat cartel influence.

#6)Nebraska Lawmakers Deliberate Implementation of Voter-Approved Medical Cannabis Measures: Following the November 2024 approval of Initiatives 437 and 438, which legalized medical cannabis in Nebraska, state legislators are now working to establish a regulatory framework to implement these measures.The approved initiatives permit qualified patients to possess up to five ounces of cannabis for medical use and establish the Nebraska Medical Cannabis Commission as the overseeing regulatory body.

#7)Former NBA Player Iman Shumpert Introduces ‘TSA APPROVED’ Cannabis Brand in New York: Former NBA player Iman Shumpert has launched a cannabis brand, TSA APPROVED, in partnership with Glenmere Farms, a licensed cannabis producer in New York. The brand aims to offer high-quality cannabis products while contributing to the state’s regulated market.

Psychedelic Sector Update

1#) Arizona Advances Psilocybin Research Initiatives: Arizona legislators have approved measures to promote research into the medical applications of psilocybin, the active compound in certain mushrooms, and to establish a Psilocybin Research Advisory Council.The House Military Affairs & Public Safety Committee unanimously passed House Bill 2486, allocating $30 million over three years for clinical trials investigating psilocybin’s potential in treating conditions such as post-traumatic stress disorder, depression, anxiety, and substance use disorders.

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