Week In Review: Ascend Wellness Secures $15 Million in Private Placement to Bolster Growth Initiatives; Virginia Senate Committee Advances Bill to Legalize Recreational Cannabis Sales; Leafly Holdings Delisted from Nasdaq Amid Financial Challenges

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) Ascend Wellness Secures $15 Million in Private Placement to Bolster Growth Initiatives: Ascend Wellness Holdings, Inc. a multi-state, vertically integrated cannabis operator, has successfully completed a $15 million private placement of its 12.75% Senior Secured Notes due 2029.

#2) Virginia Senate Committee Advances Bill to Legalize Recreational Cannabis Sales: On January 17, 2025, the Virginia Senate Rehabilitation and Social Services Committee approved Senate Bill 970 (SB 970) with an 8–7 vote along party lines. Introduced by Senator Aaron Rouse (D-Virginia Beach), the bill proposes the establishment of a regulated retail market for adult-use cannabis, with sales anticipated to commence on May 1, 2026.

#3) Leafly Holdings Delisted from Nasdaq Amid Financial Challenges: Leafly Holdings, Inc, a online cannabis discovery platform, was delisted from the Nasdaq Stock Market on January 17, 2025, after failing to meet the exchange’s minimum net income requirement of $500,000 from continuing operations.

#4) President Trump’s Role in Cannabis Rescheduling and Federal Reform.: President Donald Trump is poised to significantly influence the trajectory of federal cannabis policy, particularly concerning the rescheduling of marijuana under the Controlled Substances Act (CSA). The rescheduling process, initiated under the previous administration, is currently paused, awaiting the appointment of a new head for the U.S. Drug Enforcement Administration (DEA) by President Trump. The selected DEA chief’s stance on cannabis will be pivotal in determining the outcome of rescheduling efforts.

#5) Senator Warren Seeks Clarification from RFK Jr. on Cannabis Legalization and Rescheduling: Senator Elizabeth Warren (D-MA) has formally requested that Robert F. Kennedy Jr., the nominee for Secretary of Health and Human Services (HHS), clarify his stance on cannabis legalization and rescheduling. In a comprehensive 34-page letter, Senator Warren posed 175 questions covering various policy areas, including substance abuse, opioid crisis management, and cannabis reform.

#6) The Important Tax Deadlines to Remember in Cannabis: As we enter 2025, it’s crucial for individuals and businesses to keep track of key tax deadlines. Missing these dates can lead to penalties, interest charges, and wasted opportunities for tax savings. At Growise CPAs, we understand the complexities of tax compliance, especially in the cannabis and psychedelic industries. So, let’s outline the critical tax deadlines you should keep in mind throughout the year.

#7) Pallas Capital Advisors LLC Increases Investment in Tilray Inc.: Pallas Capital Advisors LLC has significantly increased its investment in Tilray Inc, a company in the cannabis industry. According to the firm’s latest 13F filing with the Securities and Exchange Commission, Pallas Capital Advisors raised its holdings by 59.4% during the fourth quarter, acquiring an additional 18,792 shares. This brings their total to 50,438 shares, valued at approximately $67,000.

#8)High Tide Acquires Majority Stake in Germany’s Purecan GmbH:Canadian cannabis retailer High Tide Inc. has announced a definitive agreement to acquire a 51% stake in German pharmaceutical wholesaler Purecan GmbH for approximately €4.8 million. The transaction comprises €2.4 million in High Tide common shares, €1.2 million in cash, and a €1.2 million promissory note with a two-year maturity and an annual interest rate of 7%. The agreement also includes an option for High Tide to acquire the remaining interest in Purecan within five years.

#9)MindMed Advances Clinical Programs and Secures Significant Funding: Mind Medicine  has released its 2025 Corporate Presentation, detailing strategic initiatives and significant financial developments. The company has secured a substantial $250 million equity investment, bolstering its cash reserves to approximately $295.3 million as of September 30, 2024. This funding is expected to support operations into 2027, facilitating the advancement of MindMed’s clinical trials and commercialization efforts.

#10)Regulatory Challenges for Hemp Beverages in the USA: The hemp beverage industry in the United States is growing rapidly, driven by consumer demand for wellness-focused and sustainable alternatives to traditional drinks. According to Fortune Business Insights, the U.S. cannabis beverage market is projected to reach $81.44 billion by 2032, supported by the legalization of cannabis products in several states.

#11)Poland’s Medical Cannabis Prescriptions Decline Amid Regulatory Changes:Recent regulatory changes in Poland have led to a significant decrease in medical cannabis prescriptions. In August 2023, the Ministry of Health implemented a regulation requiring physicians to verify a patient’s medication history and conduct examinations, either in-person or online, if more than three months have passed since the last assessment. This move aimed to address concerns over the ease of obtaining medical cannabis prescriptions through online consultations.

Psychedelic Sector Update

1#) Colorado Considers Psilocybin Prescription Legislation: Colorado lawmakers have introduced House Bill 25-1063, a bipartisan proposal that would permit the prescription of crystalline polymorph psilocybin—a synthetic form of the psychedelic compound—contingent upon approval by the U.S. Food and Drug Administration (FDA).

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