Week’s In Review: South Carolina AG Confirms Legality of Hemp-Derived THC Beverages; COMPASS Pathways Receives Analyst Ratings; Pennsylvania Lawmakers Introduce Bipartisan Bill to Legalize Recreational Cannabis.

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#South Carolina AG Confirms Legality of Hemp-Derived THC Beverages: South Carolina Solicitor General Robert D. Cook issued a legal opinion on Sept. 16, affirming that nonalcoholic beverages containing hemp-derived delta-9 THC are legal under the 2018 Farm Bill, provided they contain no more than 0.3% THC by dry weight. The opinion was in response to a request from South Carolina House Speaker D. Murrell Smith Jr., who sought clarity on the legality of these beverages.

2#COMPASS Pathways Receives Analyst Ratings: COMPASS Pathways, a company specializing in mental health treatments, has garnered significant attention in recent market reports due to favorable analyst ratings and its stock performance. Several brokerages have maintained a consensus “Buy” rating on COMPASS Pathways, with price targets ranging from $23.00 to $47.40. Six research analysts have recently reiterated their “buy” ratings, with HC Wainwright setting a high target of $120.00 per share. Other firms, such as Canaccord Genuity Group, have adjusted their targets slightly, reducing from $50.00 to $48.00 while maintaining a positive outlook.

3#Pennsylvania Lawmakers Introduce Bipartisan Bill to Legalize Recreational Cannabis: A bipartisan group of Pennsylvania lawmakers introduced a bill last week to legalize recreational cannabis for adults. The legislation, known as House Bill 2500, was sponsored by Republican Rep. Aaron Kaufer and Democratic Rep. Emily Kinkead, with 15 additional cosponsors. If passed, it would legalize cannabis for adults over the age of 21 and regulate its sale through the state’s Department of Agriculture.

4#Verano Holdings to Participate in Key Investor Conferences: Verano Holdings Corp. U.S. multi-state cannabis company, has announced its participation in two significant industry conferences. The company’s executives will engage with investors and industry leaders to discuss important market developments and future outlooks for the cannabis sector.

5# Illinois Supreme Court: Cannabis Odor Alone Not Enough for Vehicle Search: In a significant ruling, the Illinois Supreme Court declared on Thursday that the smell of burnt cannabis alone does not justify a warrantless vehicle search. The unanimous decision stems from a 2020 case where an officer searched a car based solely on the odor of burnt cannabis, discovering a small amount of cannabis. The court ruled that while the smell can be considered in determining probable cause, it must be accompanied by other evidence to justify a search.

Psychedelic Sector Update

#1 MindMed to Present at Key September Investor Conferences: Mind Medicine (MindMed) Inc., a clinical-stage biopharmaceutical company focused on developing novel treatments for brain health disorders, announced its participation in three significant investor conferences in September 2024.

To have all our content delivered right to your inbox, and never miss a beat, subscribe to our newsletter at highlycapitalized.com  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.