Week In Review: Federal Inaction on Cannabis Exports May Cost U.S. Economy $10 Billion Annually; LEEF Brands Reports Financial Results; California Lawmakers Advance Bill to Halt Cannabis Excise Tax Increase

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 Inaction on Cannabis Exports May Cost U.S. Economy $10 Billion Annually: The United States’ federal stance on cannabis exports is potentially costing the economy up to $10 billion each year, according to industry analyses.While domestic cannabis sales are projected to reach $35.3 billion in 2025, the absence of federal legalization restricts U.S. producers from accessing the growing global market

2#)LEEF Brands Reports Financial Results: LEEF Brands Inc.  a vertically integrated cannabis company based in California, has released its financial results for the first quarter of 2025 and the full year of 2024. The company reported a 19% year-over-year increase in revenue for Q1 2025, reaching $9.4 million, and a net income of $2.0 million, marking a turnaround from a net loss in the same period the previous year. However, the adjusted EBITDA for the quarter declined to -$0.8 million, attributed to costs associated with new cultivation initiatives.

3#)California Lawmakers Advance Bill to Halt Cannabis Excise Tax Increase: California’s legal cannabis industry is confronting a potential tax increase that stakeholders warn could exacerbate existing challenges.Assembly Bill 564 (AB 564), introduced by Assemblymember Matt Haney (D-San Francisco), seeks to prevent the scheduled rise in the state’s cannabis excise tax from 15% to 19%, set to take effect on July 1, 2025.

4#)Glass House Brands Schedules Q1 2025 Earnings Call for May 13: Glass House Brands Inc. a vertically integrated cannabis company focused on the California market, announced it will release its financial results for the first quarter of 2025 on Tuesday, May 13, after market close.

5#)Nebraska Attorney General Challenges Voter-Approved Medical Cannabis Law: Nebraska Attorney General Mike Hilgers continues to contest the implementation of the state’s voter-approved medical cannabis law, citing concerns over the legality of the ballot initiatives and the regulatory framework established by the measures.

6#) UK Reports 90% Reduction in Mail-Order Cannabis Imports from Thailand: The United Kingdom has reported a 90% decrease in cannabis shipments arriving by mail from Thailand during the first quarter of 2025.This significant decline follows enhanced cooperation between UK and Thai authorities aimed at curbing illicit cannabis trafficking.

7#)Cannabis Council of Canada Urges Policy Reforms Following Carney’s Election Victory: The Cannabis Council of Canada has extended congratulations to Prime Minister Mark Carney on his recent election victory, while simultaneously calling for immediate policy reforms to support the nation’s legal cannabis industry. ​

8#)Former Metrc Executive Alleges Company Enabled Illegal Cannabis Sales in Whistleblower Suit: A former senior executive at Metrc, the leading cannabis compliance tracking company in the U.S., has filed a federal whistleblower lawsuit accusing the firm of turning a blind eye to unlawful activity, including illegal interstate cannabis sales.

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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