Week In Review: New York Faces Challenges with Illicit Cannabis Shops: New Hampshire Senate Committee Approves Cannabis Legalization Bill

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 Faces Challenges with Illicit Cannabis Shops:New York’s legal cannabis market has faced significant hurdles since the state legalized adult use in March 2021. The market’s expansion has been stymied by numerous lawsuits and changes in leadership, contributing to a flourishing illicit market. Currently, illegal dispensaries significantly outnumber legal ones, complicating efforts to establish a regulated marketplace.

#2. New Hampshire Senate Committee Approves Cannabis Legalization Bill: For the first time, a Senate committee in New Hampshire has approved a cannabis legalization bill, marking a significant milestone in the state’s legislative history. House Bill 1633, which recently passed the Senate Judiciary Committee by a narrow 3-2 vote, previously garnered strong support in the House of Representatives with a 239 to 136 vote. Authored by State Representative Erica Layon (R), the bill proposes allowing individuals 21 and older to possess and use cannabis for recreational purposes and establishes a system of licensed, taxed, and regulated cannabis retail outlets.

#3. Decline in Medical Cannabis Registrations in New Jersey and New Mexico: Recent reports have highlighted a significant decline in the number of registered medical cannabis patients in New Jersey and New Mexico, following the launch of adult-use cannabis markets in both states. According to the New Jersey Monitor, the count of medical cannabis patients in New Jersey has decreased to approximately 80,000 as of mid-April, down from a peak of around 129,000 in May 2022. This decline coincides with the introduction of the state’s recreational cannabis market two years prior.

#4. South Dakota Moves Toward Adult-Use Cannabis Legalization: South Dakotans for Better Marijuana Laws (SDBML), a cannabis advocacy group, has recently submitted 29,030 signatures to South Dakota’s Secretary of State in a bid to get an adult-use cannabis initiative on the November ballot. The Secretary of State’s office, headed by Monae Johnson, must verify at least 17,508 of these signatures by August 13 for the initiative to qualify for inclusion.

Psychedelic Sector Update

#1 UK Study Finds Psilocybin Effective in Treating Depression: A recent study conducted by researchers in the United Kingdom has found promising results for psilocybin, the active psychedelic compound in “magic mushrooms,” as a treatment for depression. The study, which was reported by Medical News Today and published in The BMJ, involved a systematic review and meta-analysis of seven randomized controlled trials.

#2. New Initiative Explores Cultural and Societal Impacts of Psychedelics: The University of California, Berkeley, and Harvard University have launched a groundbreaking collaborative initiative titled “Psychedelics in Society and Culture” aimed at expanding research into the cultural, societal, and humanistic aspects of psychedelics. This initiative represents a significant shift from the predominantly therapeutic-focused psychedelic research to exploring broader implications in the arts, humanities, and social sciences.

Sector-Wide Developments

– Canopy Growth’s Retail Optimization: The closure of five Canopy Growth retail locations is a strategic decision aimed at enhancing operational efficiency. This move reflects the company’s efforts to streamline operations and focus on profitable growth areas, amidst the challenges of a competitive market.

– Aurora Cannabis Enters the U.S.: Aurora’s strategic acquisition to enter the U.S. market represents a significant milestone. By taking a majority stake in a leading U.S.-based CBD company, Aurora is not only diversifying its portfolio but also positioning itself to capture growth in the world’s largest cannabis market.

– Washington’s Tax Relief for Medical Cannabis: The elimination of the 37% tax on medical cannabis in Washington State marks a progressive step towards supporting medical patients and designated providers. This legislative change is expected to make medical cannabis more accessible and affordable, potentially setting a precedent for other states to follow.

– Pure Jamaican’s Global Ambitions: The initiative by Pure Jamaican and Seven Ten Limited to export pharmaceutical-grade cannabinoid products underscores Jamaica’s emerging role in the global cannabis market. Targeting major markets like the USA and Brazil, this move highlights the country’s potential as a key exporter of cannabis and hemp products.

– Indiana’s Psilocybin Research Initiative: The state’s pending legislation to advance psilocybin research for mental health treatment highlights a growing recognition of the potential benefits of psychedelic substances. This initiative, particularly focused on veterans and first responders, could pave the way for broader acceptance and utilization of psilocybin in mental health care.

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