Week’s In Review: Federal Policy Uncertainty Continues to Challenge U.S. Cannabis Industry; LeafLink Acquires Leaf Trade to Enhance Cannabis Wholesale Platform; Canopy Growth Appoints New CEO Amid Financial Challenges; New York’s Legal Cannabis Sales Approach $1 Billion Milestone

3.2 min readPublished On: December 2nd, 2024By

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) Federal Policy Uncertainty Continues to Challenge U.S. Cannabis Industry: The U.S. cannabis industry remains in a state of flux due to ongoing federal policy uncertainties, impacting market dynamics, investment strategies, and regulatory compliance. In August 2024, the U.S. Drug Enforcement Administration (DEA) postponed a hearing on reclassifying cannabis from a Schedule I to a Schedule III substance under the Controlled Substances Act. This delay has prolonged uncertainty within the industry, affecting stock valuations and business planning. The rescheduling could alleviate certain tax burdens and enhance research opportunities; however, the postponement has left stakeholders in a state of anticipation.

#2) LeafLink Acquires Leaf Trade to Enhance Cannabis Wholesale Platform: LeafLink, a cannabis wholesale platform, has acquired Leaf Trade, a wholesale marketplace serving multi-state operators (MSOs) and enterprise cannabis companies. This strategic move aims to streamline operations for cannabis businesses of varying scales.

#3) Canopy Growth Appoints New CEO Amid Financial Challenges: Canopy Growth Corp., a cannabis industry, has announced the appointment of Luc Mongeau as its new Chief Executive Officer, effective January 6. Mongeau succeeds David Klein in this leadership role. With over 25 years of experience in the consumer packaged goods sector, Mongeau has previously held significant positions, including CEO of eSolutions Furniture and leadership roles at Weston Foods and Mars Petcare North America. His tenure on Canopy Growth’s board has provided him with insights into the company’s operations.

#4) New York’s Legal Cannabis Sales Approach $1 Billion Milestone: New York State’s legal cannabis market is on track to surpass $1 billion in sales by the end of December 2024, marking a significant achievement since the market’s inception two years ago. As of the latest reports, cumulative sales have reached approximately $863.9 million, with projections indicating that the billion-dollar threshold will be crossed by year-end.

#5) Green Thumb Industries Secures $150 Million Credit Facility to Retire Existing Debt: Green Thumb Industries Inc. (GTI), a national cannabis consumer packaged goods company and owner of RISE Dispensaries, has closed a $150 million five-year syndicated credit facility led by Valley National Bank. The company plans to use the proceeds, along with existing cash, to retire its $225 million senior secured debt due April 30, 2025.

#6) Nebraska Judge Upholds Voter-Approved Medical Cannabis Initiatives: A Nebraska district court has affirmed the validity of two voter-approved measures concerning medical cannabis, dismissing allegations of fraudulent signature collection. The legal challenge aimed to invalidate Measures 437 and 438, which were approved by 71% and 67% of voters, respectively, during the recent election. Measure 437 permits qualified patients to possess and use cannabis, while Measure 438 establishes a regulated system for its production and distribution.

#7) Germany’s Cannabis Legislation Faces Criticism: Felor Badenberg, Berlin’s Justice Senator, has expressed concerns that the new cannabis laws have hindered efforts to combat the black market and organized crime. She points out that police operations, such as telephone surveillance, are now restricted, leading to acquittals in cases involving large-scale cannabis smuggling. Badenberg, along with officials from Baden-Württemberg, has proposed a motion to repeal the current legislation.

Psychedelic Sector Update

1#)HYTN Innovations Secures UK Import Permits and Initial Order from 4C Labs: HYTN Innovations Inc., a pharmaceutical company specializing in psychoactive and psychotropic compounds, including cannabis and psilocybin, has received initial orders and import permits from the United Kingdom’s 4C Labs. This development enables HYTN to commence exporting cannabis-based pharmaceuticals to the UK under recently established agreements.

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About the Author: HCN News Team

The News Team at Highly Capitalized are some of the most experienced writers in cannabis and psychedelics business & finance. We cover capital markets, finance, branding, marketing and everything important in between. Most of all, we follow the money.

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