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#) Federal Cannabis Trafficking Cases Reach Record Low: The U.S. Sentencing Commission’s 2024 Sourcebook of Federal Sentencing Statistics reveals a continued decline in federal marijuana trafficking cases. In 2024, fewer than 500 individuals were charged, marking a significant decrease from nearly 3,500 cases in 2015 and approximately 5,000 in 2013.
2#)Blueberries Medical Corp. Secures C$1.05 Million in Private Placement: Blueberries Medical Corp, a Latin American producer of medicinal cannabis and cannabis-derived products, has announced a non-brokered private placement, raising approximately C$1.05 million (US$740,000). The financing involved the sale of 96,064,935 common shares at C$0.011 per share and is expected to close around March 25, 2025.
3#) Virginia Governor Vetoes Cannabis Retail Market and Assault-Style Weapons Ban: Virginia Governor Glenn Youngkin has vetoed legislation aimed at establishing a regulated cannabis retail market and implementing a ban on assault-style weapons. These decisions are part of a series of 157 vetoes issued by the governor this year, surpassing the number of vetoes by any Virginia governor in the past three decades.
4#) Australian MP Proposes Cannabis Decriminalization: An Australian Member of Parliament has introduced a proposal to decriminalize the possession of small quantities of cannabis, a move that has sparked significant discussion regarding the country’s drug policies and their economic and social implications.
5#) Entourage Health Expands Senior Secured Credit Facility: Entourage Health Corp., a Canadian producer and distributor of cannabis products, has amended its senior secured credit facility. The amendment increases the subordinated credit facility by approximately $3 million, with the funds advanced in a single draw. Additionally, the maturity date for both the senior secured and subordinated facilities has been extended to December 31, 2025.
6#) Tariffs on Chinese Imports Impact U.S. Cannabis Industry: The U.S. cannabis industry is experiencing significant effects due to increased tariffs on Chinese imports, particularly in the vaporizer sector. As of February 4, 2025, the United States imposed an additional 10% tariff on a broad range of Chinese products, including cannabis vaporizer components. This new tariff supplements the existing 25% levy established in 2018, culminating in a cumulative 35% tariff on these goods .
7#)California Implements Measures to Ensure Cannabis Product Safety: California has established a comprehensive regulatory framework to safeguard consumers from potential health risks associated with cannabis products. The Department of Cannabis Control (DCC) oversees the adoption and enforcement of regulations for commercial cannabis license holders, including cultivators, retailers, manufacturers, distributors, testing laboratories, and microbusinesses.
8#)France Advances Medical Cannabis Legalization Framework: France has officially submitted draft regulations to the European Commission, outlining the framework for the production and authorization of medical cannabis.
Psychedelic Sector Update
1#) New Mexico Advances Medical Psilocybin Legalization Efforts: The New Mexico Senate has approved the Medical Psilocybin Act (Senate Bill 219), a bipartisan initiative aimed at establishing a regulated program for the therapeutic use of psilocybin, the psychoactive compound found in certain mushrooms. The bill, which received a 33-4 vote, now awaits consideration in the House of Representatives.
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