Week’s In Review: Curaleaf Reports Revenue Growth in Q2 2024; DEA’s Postponement of Cannabis Rescheduling Raises Uncertainty for Industry; Pakistan Enters Global Hemp Market with Plans for 2025 Cultivation

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#Curaleaf Reports Revenue Growth in Q2 2024: Curaleaf Holdings, Inc. reported a net loss of $49.8 million for Q2 2024, bringing its year-to-date losses to over $100 million. Despite these losses, the company achieved a 2% increase in revenue, reaching $342.2 million, up from $335.5 million in the same quarter last year. For the first half of 2024, revenue totaled $681.2 million, compared to $668.1 million in the same period in 2023.

2# DEA’s Postponement of Cannabis Rescheduling Raises Uncertainty for Industry: The Drug Enforcement Administration (DEA) has delayed the decision to reschedule cannabis under the Controlled Substances Act (CSA) until after the 2024 presidential election, creating significant uncertainty in the ongoing cannabis reform debate. Cannabis has remained a Schedule I drug for over 50 years, a classification indicating high abuse potential and no accepted medical use. However, recent developments have challenged this status, with the DEA’s latest decision adding another layer of complexity.

3# Pakistan Enters Global Hemp Market with Plans for 2025 Cultivation: Pakistan is set to join the global hemp market by allowing commercial cultivation of hemp beginning in January 2025. This strategic move is aimed at enhancing the country’s economy through increased foreign exchange earnings and the creation of new economic opportunities.

4# Ayr Wellness Reports Revenue Increase in Q2 2024 Ayr Wellness Inc. posted a slight revenue increase for Q2 2024, reporting earnings of $117 million, a 0.5% improvement compared to the same quarter last year but a 0.6% decline from Q1 2024. The results fell short of analysts’ projections, which anticipated revenue of $119 million.

5# The Cannabist Reports Mixed Q2 2024 Results: The Cannabist Company Holdings Inc. (OTC: CBSTF), formerly known as Columbia Care, delivered a mixed performance for Q2 2024. The company reported $125 million in revenue, a 2% sequential increase but a drop from last year’s $129 million. Despite the decline, revenue surpassed analysts’ expectations of $124 million. Net losses were reduced to $14 million from $35 million in the same period last year, with earnings per share improving to ($0.03), ahead of the projected ($0.05).

Psychedelic Sector Update

#1 MindMed Launches $75 Million Public Offering to Fund Psychedelic Research: Mind Medicine (MindMed) Inc. (NASDAQ: MNMD) announced a public offering aimed at raising $75 million through the sale of approximately 9.2 million shares at $7 each. The company is also offering around 1.4 million shares at a slightly discounted price of $6.99 to select investors. The offering is expected to close on August 12, with Leerink Partners and Evercore ISI acting as joint bookrunning managers.

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