Week’s In Review: Alabama Judge Appoints Mediator in Medical Cannabis Licensing Dispute; Ascend Wellness Shares Climb 5.3% Amid Low Trading Volume; Unlicensed New York Cannabis Retailer Hit with $9.5 Million Judgment

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 Alabama Judge Appoints Mediator in Medical Cannabis Licensing Dispute: A judge in Alabama has appointed a mediator to help resolve the ongoing legal dispute surrounding the state’s medical cannabis licensing process. Montgomery Circuit Judge James Anderson selected retired Judge Eugene Reese to mediate between the Alabama Medical Cannabis Commission (AMCC) and several companies that have challenged the commission’s decisions. These companies argue that the process for awarding licenses to grow, transport, and sell medical cannabis was flawed.

#2 Ascend Wellness Shares Climb 5.3% Amid Low Trading Volume: Shares of Ascend Wellness Holdings, Inc. rose by 5.3% on Friday, reaching an intraday high of $0.82 before closing at $0.80. This upward movement came despite a notable decrease in trading volume, with only 57,558 shares changing hands, a significant 73% drop from the average daily volume of 209,931 shares. The stock had previously closed at $0.76, reflecting a modest gain in investor sentiment.

#3 Unlicensed New York Cannabis Retailer Hit with $9.5 Million Judgment: A New York Supreme Court judgment has ordered George West, owner of Jaydega 7.0 in Canandaigua, to pay $9.5 million after findings that his business sold cannabis products without the required state license. This penalty includes $1 million in profit disgorgement and $8.4 million in daily fines imposed due to ongoing sales following a cease-and-desist order issued in June 2023 by the New York Office of Cannabis Management (OCM). The judgment also enforces a precedent under New York’s revised cannabis law, which allows the OCM and the attorney general’s office to request court intervention to permanently close non-compliant businesses.

#4 Delaware Awards First Cannabis Cultivation and Manufacturing Licenses in Initial Lottery: Delaware has initiated its adult-use cannabis licensing process, awarding the first cultivation and manufacturing permits through a lottery held on October 24, 2024. This inaugural lottery, organized by the Office of the Marijuana Commissioner (OMC), drew from over 1,260 applications to randomly allocate licenses across cultivation, manufacturing, and social equity categories for the state’s three counties. However, due to high demand, the OMC will hold a separate lottery in December specifically for retail licenses, which received over 800 applications for 30 available slots.

#5 Older Adults Increasingly Turn to Cannabis for Pain and Sleep Relief: A growing number of older adults in the U.S. are turning to cannabis for managing sleep disturbances and chronic pain relief, especially as cannabis gains legal and social acceptance. Recent studies suggest that 21% of people aged 50 and older have used cannabis in the past year, with primary reasons including pain management, improved sleep, and mood enhancement. This reflects a shift in attitudes among older populations who are increasingly exploring cannabis as a therapeutic option.

Psychedelic Sector Update

1#Cybin Secures Patent for CYB005 Program in Push for New CNS Disorder Treatments: Cybin Inc., a neuropsychiatric biopharmaceutical company, announced that it has secured a U.S. patent (No. 12,122,741) covering the composition of matter for key molecules in its CYB005 program. This patent represents a strategic step for Cybin in developing non-hallucinogenic treatment options targeting central nervous system (CNS) disorders. The company’s CYB005 compounds, derived from the phenethylamine class, are being investigated for their ability to address mental health conditions by engaging serotonin 5-HT1A and 5-HT2C receptors—well-known targets in CNS therapeutic research.

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