Week In Review: Curaleaf Expands Global Reach with Acquisition of Canadian Cannabis Operator; U.S. Treasury Secretary Reaffirms Support for Cannabis Banking Legislation; TerrAscend Charts New Fiscal Path Amid Cannabis Industry’s Tax Challenges

LOS ANGELES–Welcome to the far too-exciting world of cannabis and psychedelics, where it’s earnings season with updates from some of the leading MSOs outlined below, along with a helping of innovations and financial insights from the Cannabis and Psychedelic markets. This past week the Hall of Flowers event attracted many brands and companies from all over cannabis land to the Ventura County Fairgrounds. Check out our review of Hall of Flowers Ventura here.

Cannabis Industry Highlights

#1. Curaleaf Expands Global Reach with Acquisition of Canadian Cannabis Operator: Curaleaf Holdings, a figure in the cannabis industry, is advancing its international presence through the acquisition of Northern Green Canada, a licensed cannabis producer that specializes in the import-export market. This move, the financial details of which remain undisclosed, marks a significant step for the New York-based multistate operator (MSO) in securing a strategic advantage within the global cannabis supply chain.

#2. U.S. Treasury Secretary Reaffirms Support for Cannabis Banking Legislation: In a significant development from Washington, U.S. Treasury Secretary Janet Yellen has once again vocalized her backing for critical cannabis banking legislation, emphasizing the urgency of resolving financial barriers faced by state-regulated cannabis enterprises. During a House of Representatives Appropriations subcommittee hearing, as reported by Reuters, Yellen underscored the pressing need for legislative action to bridge the gap between federal and state law, which currently leaves cannabis businesses in a precarious financial limbo.

#3. TerrAscend Charts New Fiscal Path Amid Cannabis Industry’s Tax Challenges: TerrAscend Corp. a igure in the multi-state cannabis sector, has announced a bold fiscal maneuver during its financial disclosures for the fourth quarter and the entirety of the 2023 fiscal year. The Canadian-headquartered company is set to challenge the status quo by ceasing tax payments under Section 280E of the Internal Revenue Code, a move underpinned by a nuanced legal interpretation.

#4. Chicago Atlantic Real Estate Finance Reports Amid Cannabis Industry Momentum: Chicago Atlantic Real Estate Finance, Inc.  an Illinois-based cannabis real estate investment trust (REIT), has disclosed a substantial 17% increase in net interest income for the fiscal year 2023, reaching $57.1 million. This financial upswing underscores the company’s strong performance and strategic positioning within the burgeoning cannabis industry.

#5. Germany Approves Historic Cannabis Legalization Measure: In a landmark decision, lawmakers in Germany’s Bundesrat have voted to approve the CanG measure, paving the way for the national legalization of adult-use cannabis. The Bundesrat’s approval follows the previous endorsement by the Bundestag in February, marking a significant shift in the country’s approach to cannabis regulation.

Psychedelic Sector Update

#1. Clinical Trial Explores Psychedelic Treatment for Depression: In a move within the field of psychiatric treatment, MindBio Therapeutics Corp. has announced the launch of its Phase 2B clinical trial, investigating the potential of psychedelics in treating Major Depressive Disorder (MDD). This trial aims to assess the effectiveness of MB22001, a proprietary formulation of Lysergic Acid Diethylamide (LSD), uniquely designed for self-administration by patients outside clinical environments.

Sector-Wide Developments

– Canopy Growth’s Retail Optimization: The closure of five Canopy Growth retail locations is a strategic decision aimed at enhancing operational efficiency. This move reflects the company’s efforts to streamline operations and focus on profitable growth areas, amidst the challenges of a competitive market.

– Aurora Cannabis Enters the U.S.: Aurora’s strategic acquisition to enter the U.S. market represents a significant milestone. By taking a majority stake in a leading U.S.-based CBD company, Aurora is not only diversifying its portfolio but also positioning itself to capture growth in the world’s largest cannabis market.

– Washington’s Tax Relief for Medical Cannabis: The elimination of the 37% tax on medical cannabis in Washington State marks a progressive step towards supporting medical patients and designated providers. This legislative change is expected to make medical cannabis more accessible and affordable, potentially setting a precedent for other states to follow.

– Pure Jamaican’s Global Ambitions: The initiative by Pure Jamaican and Seven Ten Limited to export pharmaceutical-grade cannabinoid products underscores Jamaica’s emerging role in the global cannabis market. Targeting major markets like the USA and Brazil, this move highlights the country’s potential as a key exporter of cannabis and hemp products.

– Cybin’s Funding Drive for Psychedelic Development: Cybin’s aim to raise $150 million through private placement underscores the growing investor interest in the psychedelic sector. These funds are earmarked for advancing the development of psychedelic drugs, indicating strong confidence in the therapeutic and commercial potential of psychedelics.

– Indiana’s Psilocybin Research Initiative: The state’s pending legislation to advance psilocybin research for mental health treatment highlights a growing recognition of the potential benefits of psychedelic substances. This initiative, particularly focused on veterans and first responders, could pave the way for broader acceptance and utilization of psilocybin in mental health care.

These developments across the cannabis and psychedelic sectors reflect a period of strategic repositioning, financial maneuvering, and innovative breakthroughs. As companies and states navigate regulatory, market, and scientific landscapes, the potential for growth and transformation in these industries continues to expand, promising exciting advancements in the near future.

Necann Boston is this week! March 22/23rd

The Cannabis Summit European Cannabis networking event; 11-12 April 2024

Benzinga Cannabis  April 16-17; Hollywood Florida

More dates are added regularly so follow Highly Capitalized for more information.

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