Week In Review: Cannabis & Psychedelics Industry Highlights

LOS ANGELES – Wrapping up September 2025, it’s clear the U.S. Cannabis sector is buzzing with a mix of encouraging expansion signs and sobering challenges, ranging from record-breaking sales in emerging markets to the frustrating realities of illicit infiltration, margin squeezes, and Trump’s tariff pressures.

While psychedelics research simmers quietly without major breakthroughs, Cannabis operators are charging ahead with bold expansions and financial strategies, fueled by hopes of federal rescheduling, while consolidation emerges as the key force reshaping this $45 billion giant.

Let’s unpack the week’s pulse, breaking down the wins and strategic moves driving the sector forward.

Market Performance & Financial Strategies

Cannabis stocks showed mixed signals this month, with the Global Cannabis Stock Index ticking up modestly amid international and state-level reforms momentum, though broader volatility tied to tariff threats tempered gains.

Curaleaf Holdings cemented its status as the first U.S.-focused operator in Canada’s S&P/TSX Composite Index, a move poised to attract ETF flows and institutional scrutiny.

Green Thumb Industries kicked off a $50 million shared repurchase plan, set to run through September 2026, funded from cash reserves rather than debt. This signals confidence in undervalued shares, with the stock jumping 9% on the news, and fits GTI’s pattern of returning capital while eyeing growth in states like Minnesota.

Jushi locked in a $4 million loan extension from FVCBank at a lower 7.5% floor, earmarked for equipment and working capital.

Verano Holdings advanced its redomicile from British Columbia to Nevada, aligning governance with U.S. operations across 158 dispensaries and 1.1 million square feet of canopy, potentially streamlining M&A in a consolidating arena.

Grown Rogue bought out its Illinois JV partner for $1.5 million, gaining full control of a facility due online by mid-2026 in a $2 billion market.

Tariffs proposed under the Trump administration [25% on Canada and Mexico, up to 34% on China] could inflate equipment costs 10-20% on $1.2 billion in imports, pressuring EBITDA for import-reliant growers and hastening mergers among those with warehousing advantages.

Regulatory & Policy Developments

Rhode Island’s Cannabis Control Commission opened applications for 24 adult-use retail licenses across six zones, with lotteries for oversubscription and equity waivers for social applicants at $7,500 fees, injecting competition into a $118 million market and likely pressuring prices while boosting tax hauls in a medical-dominant state.

Federally, FinCEN reported steady banking access with 816 institutions filing Cannabis SARs by late 2024 [flat year-over-year but a leap from 60 in 2014] yet 72% of executives seek better loans amid $50,000 annual compliance bites and 10% revenue lost to cash handling in high-volume states.

Chinese syndicates and Mexican cartels exploit 2018 Farm Bill loopholes to flood markets with high-THC hemp-derived products, fueling the illicit trade laced with contaminants and siphoning 75% from legal channels, however, enforcement strains local resources, dragging investor sentiment until federal action materializes.

Texas regulators imposed a 21+ age limit on hemp-derived THC sales at bars effective October 1, mandating ID checks and risking revocations in a $5.5 billion sector, a post-edibles veto compromise that favors larger chains with compliance infrastructure over small operators.

Washington State’s Liquor and Cannabis Board advanced harvest and processing date labels for 2026 rollout, targeting 15-20% waste reductions in a $1.26 billion market but drawing flak from producers over $5-15,000 setup costs.

Sales, Revenue & Consumer Trends

Ohio’s recreational breakthrough crossed $785.5 million since August 2024 launch through early September, pushing total sales past $3 billion and outstripping Michigan’s debut year with weekly takes of $15-20 million across 165 dispensaries.

California pulled $259.7 million in Q2 taxes [$147.3 million excise plus $112.4 million sales] for year-to-date $502.8 million funneled to prevention and habitat programs, down 8% from prior year post-2022 cultivation tax repeal, spotlighting illicit erosion in the $7.3 billion cumulative collector.

Arkansas medical sales reached $193.1 million January-August, pacing a record $283 million full-year with $800,000 daily averages serving 110,000 patients via 38 outlets; up 6% year-over-year, this medical benchmark amasses $1.5 billion since 2019 and $21.5 million taxes, proving loyalty drives efficiency in restricted setups vulnerable to disruptions.

Colorado flower wholesale sank to $649 per pound in Q3, a record low despite 25% cultivator cuts since 2023. Sales dipped 36% to $1.4 billion in 2024 from 2021 peak; overbuild and home grows flatten demand, shuttering chains and underscoring premium strains’ role in federal trade hopes.

Business Expansions & Operational Insights

Verano Holdings opened a MÜV dispensary in Crystal River, Florida, elevating its state count to 82 and national to 152 with 240,000 square feet of cultivation, tapping 917,000 medical patients in a stalled recreational arena. This shores western access near Ocala and leverages $879 million prior revenue for density-driven loyalty over ballot reliance.

Green Thumb Industries launched adult-use at five Rise locations in Minnesota, seizing a duopoly window pre-2026 licensing in a 5.8 million-resident market hemmed by dry states, testing logistics for edibles and flower amid two-ounce public possession caps.

High Tide Inc. opened three Canna Cabana stores in Ontario, nearing 210 units with 88 in Ontario and 89 in Alberta – high-traffic zones near 650,000 residents and energy hubs fuel 7% same-store growth via loyalty, diversifying to 40% accessories in a $3 billion provincial duo grappling 25% flower oversupply.

Highly Capitalized Network debuted “Battle of the Brands,” a Tim Naughton-led podcast tournament scoring Cannabis labels on story, quality, and cultural punch for 70,000 pros. Sponsored by Heady, it crowns quarterly winners amid sameness, spotlighting why buyers pick one brand over another and shifting marketing from volume to values in an 80% tax-burdened field.

International Highlights

Switzerland advanced a nationwide adult-use draft, featuring a nonprofit online portal and licensed outlets for 20% THC flower. Consultation runs through December, capping three home plants and banning ads to prioritize health, with taxes eyeing 300,000 users and Europe’s first commercial framework by 2026, potentially eroding black markets while testing cantonal harmony.

Snoop Dogg’s Casa Verde Capital injected £4.5 million in Mamedica, a UK telehealth leader in medical Cannabis, to scale its digital platform and supply chain, targeting a £1 billion market. The move signals Casa Verde’s strategic push into Europe’s regulated therapeutics, with Mamedica’s patient-centric model poised to bridge Cannabis and potential psychedelics applications.

HCN Insight

This week’s tapestry, from billion-dollar sales milestones to buyback bravado, reveals the Cannabis industry at inflection: economically unassailable yet structurally strained. Re[de]scheduling’s specter, amplified by bipartisan nudges toward Trump’s hesitant reforms, could unlock banking and tax relief, turbocharging multiples and quelling illicit incursions.

Yet, as Colorado’s price plunge and tariff tremors warn, survival favors the integrated: MSOs like Verano and GTI, fortifying footprints and finances, are scripting the next chapter. Psychedelics, trailing but tenacious, may borrow this playbook.

In a market destined for waves of mergers, the question isn’t if consolidation comes [though on the horizon], but who rides the crest. For operators, the directive is clear. Adapt nimbly, or risk the undertow.

Stay tuned as We Follow the Money in Cannabis & Psychedelics.