Week’s In Review: Ohio Recreational Cannabis Sales Reach Over $44 Million in First Month; DEA Reclassification of Cannabis Raises Regulatory Questions for States; Michigan Cannabis Prices Reach Historic Lows Amid Market Oversupply

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# Ohio Recreational Cannabis Sales Reach Over $44 Million in First Month: Ohio’s legal cannabis market saw strong initial performance, with over $67.3 million in total sales between August 6 and August 31, according to the state’s Division of Cannabis Control (DCC). Of this, $44 million came from recreational cannabis purchases, while medical marijuana patients accounted for $23.3 million in sales.

2# DEA Reclassification of Cannabis Raises Regulatory Questions for States: The U.S. Drug Enforcement Administration (DEA) has initiated steps to reclassify cannabis, potentially shifting it to a status similar to regulated medicines such as Tylenol with codeine or some steroids. This federal change could significantly impact the 26 states where cannabis remains illegal, prompting them to decide whether to ban its sale or establish regulatory frameworks for the now-legal substance.

3# Michigan Cannabis Prices Reach Historic Lows Amid Market Oversupply: In July, cannabis prices in Michigan’s legal market dropped to an all-time low, with the average price of an ounce of flower falling to $79.70, according to data from the Michigan Cannabis Regulatory Agency. This marks a nearly 14.5% price decline in 2024, driven by market oversupply, regulatory pressures, and competition from illicit products.

4# Europe’s Medical Cannabis Market Expected to Reach USD 11 Billion by 2032: The European medical cannabis market is projected to grow significantly, with its value reaching USD 11,093.7 million by 2032, up from USD 2,167.8 million in 2023. This reflects a compound annual growth rate (CAGR) of 19.3% between 2024 and 2032.

5# 5th Circuit Court Rules Federal Ban on Cannabis Users Owning Guns Unconstitutional: The 5th U.S. Circuit Court of Appeals has declared that prosecuting a cannabis user for gun ownership under federal law is unconstitutional, marking a significant ruling that challenges longstanding federal restrictions. The decision stems from the case of Paola Connelly, a Texas resident who admitted to occasional cannabis use and was subsequently charged with violating federal firearms laws.

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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