Week In Review: Montana Legislature Approves Bill to Tighten Cannabis Product Regulations; Kansas Governor Renews Call for Medical Cannabis Legalization; Consolidation, Capital, and the Climb

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#) Montana Legislature Approves Bill to Tighten Cannabis Product Regulations: The Montana Legislature has passed House Bill 636, introducing new restrictions on cannabis products. The Senate approved the bill with a 37–12 vote, following the House’s 84–15 approval last month. ​ ​

2#)Kansas Governor Renews Call for Medical Cannabis Legalization: Governor Laura Kelly has reiterated her support for legalizing medical cannabis in Kansas, urging lawmakers to advance legislation that would establish a regulated program for patients with qualifying medical conditions.

3#)Consolidation, Capital, and the Climb: The U.S. cannabis industry has experienced major shifts in merger and acquisition (M&A) activity over the past year, reflecting broader trends of consolidation and strategic realignment. According to Viridian Capital Advisors, the Cultivation & Retail sector led all others with $589.9 million in total deal consideration for the last twelve months ending April 4, 2025.

4#)Glass House Brands and UC Berkeley Collaborate on Hemp Research and Development: Glass House Brands Inc., a vertically integrated cannabis company, has entered into a collaboration with the University of California, Berkeley, to conduct research on hemp. The partnership will focus on areas such as medicinal product development, hemp genetics improvement, market analysis, supply chain sustainability, and the application of artificial intelligence in cultivation and production. ​

5#) Cannabis Testing Market Projected to Reach $3.2 Billion by 2030: The global cannabis testing market is projected to experience significant growth, with estimates indicating an increase from $1.26 billion in 2025 to $2.33 billion by 2030, reflecting a compound annual growth rate (CAGR) of 13.12%.

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#) Study Reveals Proliferation of Psilocybin Dispensaries in Canadian Urban Centers: 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.​

2#)Psilocybin Law Reforms Gain Momentum Across the United States: Efforts to reform psilocybin laws are accelerating nationwide, with several states making significant strides toward decriminalization or legalization of the psychoactive compound found in “magic mushrooms.”​

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