Week In Review: New York Opens Door for MSOs to Enter Adult-Use Market; Verano Challenges Alabama; Maine’s Recreational Cannabis Sector Flourishes

LOS ANGELES–Welcome to the far too-exciting world of cannabis and psychedelics, where it’s a tale of two markets: there’s innovation and progress in full swing in some parts of the country, while in other parts, the industry is on the ropes largely due to collapsing cannabis prices, making cannabis business models less profitable.  This week’s Week In Review is a roundup of key developments in the industry, showcasing the news from key companies in the space.

Weekly Overview: Developments in the Cannabis and Psychedelic Sectors

For the first time in a long time, we’ve seen a strong four-week surge, driven by positive state developments and political optimism. The US cannabis MSOS ETF gained 9.28%, with Roundhill’s WEED ETF leading at 13.58%.

Among Multi-State Operators (MSOs), Columbia Care stood out with a 17.39% increase, and Trulieve and Curaleaf posted gains of 15.50% and 12.34%. Columbia Care has surged by 221.40% since August 29.

However, some cannabis stocks faced declines last week, including Glass House Brands, TerrAscend, and Cresco. Year-to-date, Glass House and TerrAscend maintained substantial gains at 140.80% and 88.50%, while the MSOS ETF increased by 29.76%.

The notable development was the Senate Banking Committee’s announcement of a markup for SAFE Banking on September 27, delaying the previously expected vote. The cannabis industry remains dynamic, and we’ll closely monitor the impact of this and state-level regulations in the coming weeks.

Cannabis Market Highlights:

#1. New York Opens the Door for Established Cannabis Operators to Enter the Adult-Use Market: In a significant move that could reshape the cannabis landscape in New York, state regulators voted on Tuesday to permit existing medical cannabis operators to apply for adult-use retail licenses. This decision potentially positions these operators to dominate what is anticipated to be one of the largest markets on the East Coast.The Office of Cannabis Management (OCM) approved resolutions that outline a timeframe, from October 4 to December 23, during which applications for retail or microbusiness licenses will be accepted. A separate resolution also indicated that registered organizations could apply within a yet-to-be-specified window determined by the office.

#2 Verano Challenges Alabama Medical Cannabis Commission Over Revoked Business License: Verano, a player in the cannabis industry, has launched a legal battle against the Alabama Medical Cannabis Commission, following the revocation of its business license due to a discrepancy in the application score identified by the commission, as reported by WSFA. The company asserts that the commission overstepped its bounds, a move that has spurred the current lawsuit.

#3. Maine’s Recreational Cannabis Sector Flourishes: In the state of Maine, the burgeoning adult-use cannabis sector is witnessing a significant uptick in sales, reaching a pinnacle in August with revenues exceeding $21 million, as per data released by the state’s Office of Cannabis Policy. This surge is a testament to the steadily growing market, which is poised to eclipse last year’s sales figures as early as October.

#4. New York to Jumpstart Cannabis Industry with New Licensing Regulations Starting October 4: In a move to revitalize the cannabis industry in New York, the state has announced plans to commence the acceptance of cannabis industry applications from the general public and current medical cannabis companies starting October 4. This decision comes as a response to the sluggish rollout of the industry and a recent lawsuit that significantly impeded the licensing process in the state.

#5. Florida’s burgeoning medical cannabis industry, already valued at over $1.4 billion, is witnessing a period of robust growth, driven not only by an increasing number of patient registrations but also by an expansion of market entrants. The state’s recent sales figures underscore this uptick, with medical cannabis sales reaching $92 million in August and accumulating to a sum of $480 million in the quarter ending on August 31st.

Psychedelic Market Highlights:

#1 Psyched Wellness Secures $4.5 Million in Second Tranche of Financing, Aims to Expand Amanita Muscaria Product Line:  Psyched Wellness Ltd., A player in the functional mushroom sector, has successfully closed a second tranche of its non-brokered private placement, securing gross proceeds of $4.5 million, as per the company’s recent announcement. This move comes on the heels of the release of its unaudited financial results for the quarter ending May 2023. Collaborating with Gotham Green Partners on this deal, the company intends to channel the newly acquired funds towards working capital and other corporate endeavors.

#2 California’s 2024 Ballot Initiative: A Turning Point for Psychedelic Mushroom Legalization? California is poised to become the third state in the nation to decriminalize the use of psychedelics, following the State Assembly’s recent approval of a bill. This legislation would grant individuals aged 21 and older the right to possess and utilize limited quantities of natural psychedelic substances like psilocybin (found in hallucinogenic mushrooms), dimethyltryptamine (DMT), and mescaline (excluding peyote).

Updates & Events:

• Benzinga Cannabis Conference is the next big show on deck September 27-28th in the Windy City of Chicago.
• Check out the short video here showing attendees at the women-only event called the Blunt Brunch gather for a photograph here.  The Blunt Brunch was in San Diego, but they have meetings around most big cannabis conferences. Blunt Brunch is an excellent support network for women entrepreneurs. Find out more about their next events in the coming weeks here.

Stay tuned for more updates as the cannabis and psychedelic industries continue to shape the future of wellness and innovation.