Week In Review: Arkansas Governor Proposes Funding Free School Meals with Medical Cannabis Tax Revenue; Biden Commutes Sentences of Nearly 2,500 Nonviolent Drug Offenders; Hemp-Derived CBD Market Set to Expand Significantly by 2034

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) Arkansas Governor Proposes Funding Free School Meals with Medical Cannabis Tax Revenue: Arkansas Governor Sarah Huckabee Sanders has announced plans to allocate tax revenue from medical cannabis sales to fund free school meals across the state. In her State of the State address, Governor Sanders stated, “I’ve already announced that Arkansas will participate in summer EBT this year. And today, I’m announcing my plan to use medical marijuana money to make both this program and our free lunch and breakfast programs financially sustainable for years to come.”

#2) Biden Commutes Sentences of Nearly 2,500 Nonviolent Drug Offenders: President Joe Biden has commuted the sentences of approximately 2,500 individuals convicted of nonviolent drug offenses, marking a significant use of executive clemency. This action aims to address past disparities in drug-related sentencing, particularly those involving crack and powder cocaine.

#3)Hemp-Derived CBD Market Set to Expand Significantly by 2034: The global hemp-derived cannabidiol (CBD) market is forecasted to grow from $8.28 billion in 2023 to $46.25 billion by 2034, with a compound annual growth rate (CAGR) of 16.93%, according to Research and Markets. This expansion is driven by increased consumer preference for natural wellness products, regulatory developments, and growing applications in personal care and cosmetics.

#4) Vireo Growth Completes $81 Million Equity Offering:Vireo Growth Inc., a Minneapolis-based cannabis multistate operator, has successfully concluded an oversubscribed private placement, raising approximately $81 million. Initially targeting $75 million, the company issued 129,536,874 subordinate voting shares at $0.625 per share, representing a 16.8% premium over the December 27, 2024, closing price on OTCQX.

#5) New York Supreme Court Halts Warrantless Raids on Licensed Hemp Retailers:In a recent decision, New York State Supreme Court Justice Thomas Marcelle issued an injunction against the New York State Cannabis Control Board (CCB), the Office of Cannabis Management (OCM), and the New York City Sheriff’s Office, prohibiting them from conducting warrantless raids on state-licensed hemp businesses. The court found that these actions violated the Fourth Amendment’s protection against unreasonable searches and seizures.

#6) DEA Faces Allegations of Bias in Cannabis Rescheduling Process:The Drug Enforcement Administration (DEA) is under scrutiny following allegations of bias in its handling of the cannabis rescheduling process. Pro-cannabis advocates assert that the agency has demonstrated an “unalterably closed mind” toward reclassifying cannabis from Schedule I to Schedule III under the Controlled Substances Act.

#7) Indiana Legislators Introduce Cannabis Legalization and Psilocybin Research Bills:Indiana lawmakers have initiated efforts to reform the state’s drug policies in the 2025 legislative session, introducing several bills aimed at legalizing cannabis and funding psilocybin research.

#8) High Tide Acquires Majority Stake in German Cannabis Firm: High Tide Inc., a Canadian cannabis enterprise, has acquired a 51% stake in Frankfurt-based pharmaceutical company Purecan for approximately €4.8 million. This strategic move marks High Tide’s entry into Germany’s medical cannabis market.

Psychedelic Sector Update

1#) Psilocybin Therapy Shows Promise for Pandemic-Induced Depression in Healthcare Workers:Recent studies indicate that psilocybin-assisted psychotherapy may alleviate depression among healthcare professionals affected by the COVID-19 pandemic. A randomized clinical trial conducted by the University of Washington involved 30 frontline clinicians experiencing moderate to severe depression. Participants received either a 25 mg dose of psilocybin or a placebo, alongside psychotherapy sessions. The psilocybin group exhibited a significant reduction in depression symptoms compared to the placebo group, with improvements sustained over six months.

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