Week In Review: FDA Submission of MDMA-Assisted Therapy Application Aims to Advance Mental Health; Ohio Senate Redirects Cannabis Tax Revenue; Trulieve Are a Minority-Owned Business?

LOS ANGELES–Welcome to the far too-exciting world of cannabis and psychedelics, where it’s a tale of two markets: there’s innovation and progress in full swing in some parts of the country, while in other parts, the industry is on the ropes largely due to collapsing cannabis prices and lack of access to capital, making cannabis business models very challenging.  This week’s ‘Week In Review’ is a roundup of key developments in the industry, showcasing the news from key companies and people making news in the space.

Weekly Overview: Developments in the Cannabis and Psychedelic Sectors

Financial News: Cannabis equities have slowed last week following the wave of positive momentum triggered by the HHS rescheduling recommendation on August 29th, 2023, propelled MSOS ETF to an impressive 9% surge up to last wewek. Despite a subsequent dip in trading last week, cash and investments continue to flow into Multi-State Operators (MSOs).

#2. Ohio Senate Redirects Cannabis Tax Revenue; In a move that has sparked widespread debate, the Ohio Senate has recently passed a bill that significantly alters the allocation of tax revenue generated from adult-use cannabis. This legislative action stands in stark contrast to the preferences expressed by Ohio voters, who had originally earmarked these funds for social equity and job programs. The bill, which was passed last week on the same day the voter-approved law took effect, signals a shift in fiscal priorities, raising concerns among advocates and citizens alike.

#3. Trulieve Alabama Recognized as Minority-Owned Business: The Alabama Medical Cannabis Commission (AMCC) has recently taken a significant step forward in the development of the state’s medical cannabis industry. In a pivotal move, the AMCC awarded integrated licenses to five companies, marking a crucial phase in the implementation of the medical marijuana law passed in 2021 in Alabama. This development was reported by the news outlet AL.com.

Psychedelic Market Highlights:

#1. MindMed Announces Breakthrough in GAD Treatment with MM-120 in Clinical Trial. Mind Medicine (MindMed) Inc., a clinical stage biopharmaceutical company, has reported promising results from its Phase 2b clinical trial of MM-120 (lysergide d-tartrate) in treating generalized anxiety disorder (GAD). The trial achieved its primary endpoint, with MM-120 showing significant improvements in the Hamilton Anxiety rating scale (HAM-A) compared to a placebo at Week 4.

#2 Algernon Pharmaceuticals Announces $150,000 Private Placement for Working Capital; Algernon Pharmaceuticals Inc., a Canadian clinical stage pharmaceutical development company, has announced a non-brokered private placement aiming to raise $150,000. The offering comprises units priced at $0.075 each, with each unit consisting of one Class A common share in the company and one common share purchase warrant. These warrants allow the holder to acquire additional common shares at $0.20 each for two years from the date of issuance, with provisions for an accelerated expiry.

Stay tuned to Highly Capitalized for more updates as the cannabis and psychedelic industries continue to shape the future at the intersection of wellness and innovation. Subscribe to our newsletter and follow us on LinkedIn.