Week In Review: Bipartisan Legislation Proposes Framework for Federal Cannabis Legalization; Village Farms International Granted 180-Day Extension to Meet NASDAQ; New Mexico Takes a Landmark Step Toward Legal Psychedelic Therapy

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#) Bipartisan Legislation Proposes Framework for Federal Cannabis Legalization: In a significant move towards federal cannabis reform, a bipartisan group of U.S. lawmakers has reintroduced the Preparing Regulators Effectively for a Post-Prohibition Adult-Use Regulated Environment (PREPARE) Act. The legislation aims to establish a comprehensive framework for the potential federal legalization of cannabis, reflecting the evolving legal landscape across various states.

2#) Village Farms International Granted 180-Day Extension to Meet NASDAQ:Village Farms International Inc.has received a 180-day extension from The Nasdaq Stock Market LLC to regain compliance with the exchange’s minimum bid price requirement.This extension follows the expiration of the initial compliance period on April 16, 2025. The company now has until October 13, 2025, to ensure that its common shares close at or above $1.00 per share for a minimum of ten consecutive business days .​

3#) New Mexico Takes a Landmark Step Toward Legal Psychedelic Therapy: Governor Michelle Lujan Grisham has officially signed the Medical Psilocybin Act into law, positioning New Mexico as the third U.S. state to legalize psilocybin for therapeutic use. But unlike Oregon and Colorado, which passed their reforms through ballot initiatives, New Mexico took the legislative route—marking a significant shift in how states are approaching psychedelic medicine.

4#)$10M Medicaid Settlement Raises Alarms Over Political Spending Tied to DeSantis’ Anti-Cannabis Push: Florida’s medical settlement funds are under scrutiny after a $10 million payment intended for charitable use was channeled to two organizations that later fueled a high-dollar campaign against adult-use cannabis in the state.

5#) Cannabis Prices Decline in New York Amid Market Expansion: The legal cannabis market in New York is experiencing a notable decrease in product prices, coinciding with rapid industry growth and increased consumer access.

6#) SNDL to Acquire 32 Cannabis Retail Stores from 1CM Inc.: SNDL Inc. has entered into an agreement to acquire 32 cannabis retail stores from 1CM Inc. for CAD 32.2 million in cash. The stores operate under the Cost Cannabis and T Cannabis banners and are located in Ontario, Alberta, and Saskatchewan. This acquisition will increase SNDL’s total owned and franchised cannabis retail store count to 219. ​

7#)Proposed New York Cannabis Legislation May Introduce Regulatory Challenges New York State legislators are considering a bill that could modify existing restrictions on intoxicating hemp products, potentially impacting the state’s legal cannabis market. The proposed legislation aims to ease limitations on certain hemp-derived products, which may lead to an influx of out-of-state brands entering the New York market. ​

8#)Virginia General Assembly Upholds Governor’s Vetoes on Cannabis Legislation The Virginia General Assembly recently convened to address Governor Glenn Youngkin’s vetoes and amendments on various legislative measures, including those pertaining to cannabis regulation. Despite efforts by Democratic lawmakers to overturn the vetoes, the assembly upheld the governor’s decisions, maintaining the current stance on cannabis policies in the state.​

Psychedelic Sector Update

1#)Psilocybin Use Rises Amid Shifting Public Perception and Regulatory Changes: Recent studies indicate a significant increase in psilocybin use across the United States, correlating with evolving public attitudes and regulatory developments.Data from the University of Colorado Anschutz Medical Campus and Rocky Mountain Poison and Drug Safety reveal that lifetime psilocybin use among U.S. adults rose from 10% in 2019 to 12.1% in 2023, equating to over 31 million individuals. Past-year usage also climbed, with 3.1% of adults reporting consumption in 2023, up from previous years. ​

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