Week in Review: Cannabis & Psychedelics Industry Highlights

LOS ANGELES – Operators and investors wrapped up 2025 on a high note, with federal policy breakthroughs and corporate maneuvers signaling sustained growth potential across Cannabis & Psychedelics.

Over the past two weeks, President Trump’s EO on rescheduling captured headlines, while the Supreme Court’s pass on a key prohibition challenge underscored the sector’s reliance on executive action. Financial cleanups, strategic buys, and state expansions rounded out a period of tangible progress, even as hemp faces unabated challenges. These developments reinforce a maturing market ready to capitalize on regulatory clarity and therapeutic promise.

Federal Policy Shifts Reshape National Framework

Federal actions dominated the discourse, blending executive momentum with judicial restraint to nudge Сannabis toward mainstream acceptance. President Donald Trump delivered a seismic shift on December 18 by signing an executive order directing the Department of Justice to expedite Сannabis rescheduling from Schedule I to Schedule III. Industry leaders hailed the move as a catalyst for tax relief under Section 280E, improved banking access, and institutional capital inflows. Yet the order stops short of federal legalization, descheduling, or SAFE Banking reforms, leaving room for congressional follow-through. For now, it marks a concrete step toward federal alignment with state programs serving over 50 million consumers.

Complementing this, the U.S. Supreme Court declined to hear a challenge to federal Cannabis prohibition, letting stand lower court rulings that uphold the status quo. The case, centered on interstate commerce conflicts, drew briefs from 20 states and industry groups urging clarity. By passing, the Court avoids a potential blockbuster that could have forced descheduling or commerce clause reinterpretations. This outcome shifts focus back to administrative channels, where Trump’s order gains added weight. Legal experts view the silence as tacit endorsement of incremental reform, buying time for rulemaking without judicial overreach. For operators, it means continued navigation of dual sovereignty [state-legal but federally risky] while underscoring the urgency of bipartisan bills like the MORE Act in the next Congress.

Corporate Strategies Drive Consolidation & Expansion

Multi-state operators sharpened their edges through debt management, acquisitions, and market entries, fortifying balance sheets for a post-rescheduling surge.

Florida powerhouse Trulieve made waves with dual financial maneuvers, redeeming $368 million in senior notes to wipe out legacy debt and securing $140 million in fresh senior notes. The redemption slashes interest expenses by over $30 million annually, freeing cash for expansion in high-margin markets like Pennsylvania and Maryland.

Canadian players echoed this vigor. Organigram Global posted Q4 2025 financial and full-year results, showing 18% revenue growth to CA$45 million, driven by premium flower demand and international exports.

Canopy Growth snapped up Montreal-based MTL Cannabis to accelerate medical sales, adding 15 dispensaries and a loyal patient base in Quebec. The deal, valued at CA$20 million, targets a 25% uptick in prescription volumes by mid-2026.

On the international front, Cronos Group inked a deal to acquire a leading Dutch Cannabis producer aiming to cement European foothold ahead of Germany’s full adult-use rollout in April 2026. The move grants access to 50-ton annual capacity and EU-GMP-certified facilities, fueling exports to the UK and beyond.

These transactions reflect a sector-wide push toward efficiency, with M&A volume up 30% quarter-over-quarter, signaling confidence in scalable models that blend domestic scale with global reach.

State-Level Momentum Builds Ground Game

Vape leader Stiiizy acquired 12 Gold Flora retail outlets in California, expanding to 40 stores in the world’s largest legal market. The $25 million transaction bolsters presence in Los Angeles and San Diego, where foot traffic drives 60% of sales.

Grown Rogue launched operations in Minnesota via a cultivation partnership, targeting the state’s $500 million medical market.

Ascend Wellness teamed with a prominent Cannabis advocate for a partnership Mister Jones Dispensary in Little Falls, New Jersey, tapping into the Garden State’s 300,000+ patient pool.

Kentucky broke ground on its inaugural medical Cannabis dispensary in Beaver Dam, marking the Bluegrass State’s entry into regulated access.

Vireo Growth acquired PharmaCann’s Colorado assets, adding cultivation and retail capacity to its medical portfolio. The $15 million deal enhances vertical integration in a market exceeding $2 billion in sales, with projected synergies lifting EBITDA by 10%.

Market Dynamics & Liquidity Pressures

Investor sentiment swung positive, buoyed by ETF gains and sector forecasts, even as operators grapple with cash flow realities. $MSOS rallied sharply on rescheduling buzz and year-end positioning. Zuanic & Associates’ report attributes the surge to undervalued assets and policy tailwinds, projecting 40% upside for top multi-state Cannabis operators. Trading volume hit record levels, drawing institutional interest long sidelined by Schedule I stigma. This ETF barometer suggests the sector’s $43 billion market cap could double by 2027 if banking reforms materialize, rewarding patient capital with diversified exposure.

Viridian Capital Advisors report spotlights liquidity strains on mid-cap Cannabis firms, despite healthy debt profiles averaging 2.5x EBITDA.

Cannabis Market Intelligence forecasts the testing sector expanding at 12% CAGR to $2.5 billion by 2030, driven by potency verification and contaminant screening.

The craft Cannabis niche eyes $12.3 billion by 2031, per market projections, fueled by boutique demand for terpene-rich genetics. Rescheduling could amplify this through interstate craft flows, rewarding artisanal scale. These trends highlight a bifurcated market: big players chase volume, while niches command premiums.

Hemp Sector & Regulatory Overreach

Hemp stakeholders voiced frustration over federal and state tweaks that blur lines with Cannabis, threatening supply chains and innovation. A proposed federal hemp overhaul threatens seed trade viability, prompting backlash from breeders over tightened THC thresholds. Concurrently, CRS analysis exposed enforcement gaps in hemp bans, while Michigan’s Senate advanced controls on intoxicating derivatives like delta-8 THC.

Psychedelics Advance on Therapeutic Fronts

Breakthroughs in regulation and funding accelerated psychedelics’ path from fringe to formulary, with U.S. and global pilots gaining traction.

The FDA announced a policy favoring single Phase 3 trials for breakthrough therapies, slashing timelines by 18-24 months for psychedelics like MDMA and psilocybin. This shift targets PTSD and treatment-resistant depression, where dual trials have stalled approvals. Developers like Compass Pathways stand to accelerate filings, with market entry possible by 2028. The change reflects data from 50+ studies showing 70% response rates, positioning psychedelics as a $10 billion U.S. opportunity.

New Mexico regulators approved expedited licensing for psilocybin therapy centers, aiming for 20 facilities by late 2026. The framework mandates clinician oversight and veteran priority, drawing from Oregon’s model with 85% patient satisfaction. Funded by a $5 million state grant, this initiative could treat 10,000 individuals annually, fostering a $300 million ecosystem.

Texas allocated $50 million for ibogaine trials targeting opioid addiction and PTSD in veterans.

The Czech Republic approved guidelines for psilocybin therapy starting in 2026, establishing dosing protocols and provider standards. This positions Central Europe as a hub for clinical trials, with potential to serve 5,000 patients yearly and attract $200 million in pharma investment. These strides could triple psychedelic R&D funding to $2 billion globally by 2028, bridging mental health gaps for 100 million affected individuals.

HCN Insight

This fortnight’s headlines paint a sector hitting stride. Federal rescheduling unlocks fiscal breathing room, corporate housecleaning builds resilience, and psychedelic policy cracks open therapeutic frontiers. Trump’s order, while not a panacea, dismantles barriers that choked growth for decades. State wins in Kentucky and New Mexico prove grassroots momentum endures, even as hemp navigates turbulence. For investors, the $MSOS uptick whispers of undervalued gems; for operators, it’s a call to sharpen vertical edges.

Highly Capitalized Network-HCN sees 2026 as inflection, where policy meets profitability, and innovation scales impact.

So, stay tuned, dear followers and subscribers!
The wave rolls on, as do the good times in Psychedelics & Cannabis.