Week In Review: New York’s Cannabis Regulatory Body Introduces Banking Directory; Arkansas Senate Advances Bill to Fund Free School Breakfasts Using Medical Cannabis Revenue; Tennessee Lawmakers Introduce Bills to Legalize Recreational and Medical Cannabis

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) New York’s Cannabis Regulatory Body Introduces Banking Directory: The New York Office of Cannabis Management (OCM) has launched a Cannabis Banking Directory to assist licensed cannabis businesses in identifying financial institutions willing to provide banking services. This initiative aims to mitigate challenges faced by cannabis operators in securing compliant financial services.

#2)Arkansas Senate Advances Bill to Fund Free School Breakfasts Using Medical Cannabis Revenue: The Arkansas Senate has approved a bill to allocate revenue from medical cannabis taxes to fund free breakfasts for students statewide. The legislation, designated as SB 59, proposes supplementing federal meal programs with a state Food Insecurity Fund, financed by cannabis tax revenue, private grants, and the state’s general fund.

#3) Tennessee Lawmakers Introduce Bills to Legalize Recreational and Medical Cannabis: Tennessee legislators have introduced two separate bills aimed at legalizing both recreational and medical cannabis use within the state.

#4) Cannabis Brands Leverage for Marketing Amid Advertising Restrictions: The Super Bowl presents a significant opportunity for cannabis businesses to enhance brand and product awareness, despite existing advertising limitations. While traditional advertising channels during the Super Bowl remain inaccessible to cannabis companies due to federal regulations and network policies, many brands have adopted alternative strategies to capitalize on the event’s massive viewership.

#5) Kentucky Issues Initial Medical Cannabis Patient Identification Cards.:Kentucky commenced the distribution of its first medical cannabis patient identification cards. Governor Andy Beshear awarded the inaugural cards to Dr. Ryan Grell, an anesthesiologist and owner of the Kentucky Medical Marijuana Center, and Merissa Khumalo, a former educator at Rise STEM Academy for Girls.

#7) Frontier Risk Group Secures $3 Million in Seed+ Funding.:Frontier Risk Group, a company specializing in insurance solutions for the cannabis industry, has announced the successful completion of a $3 million Seed+ funding round. This round was led by Casa Verde, a venture capital firm focused on the cannabis sector, with significant participation from existing investors.

#8) Nanotechnology-Enhanced CBD Demonstrates Neuroprotective Effects in Retinal Study: A study published in theEuropean Journal of Pharmacology investigated the neuroprotective properties of cannabidiol (CBD) delivered via nanotechnology in an animal model of retinal excitotoxicity. Researchers from the University of Catania, University of Crete, University of Enna, and University of Campania conducted the study.

#9)Aurora Cannabis Reports Record-Breaking Q3 2025 Financial Results:Aurora Cannabis Inc. announced its fiscal third-quarter 2025 results, highlighting significant growth in revenue and profitability.

#10)Paraguay Considers Legalizing Recreational Cannabis: Paraguay is evaluating the legalization of recreational cannabis, with the Senate scheduled to vote on a proposal in March 2025. The initiative aims to permit the sale of cannabis in regulated dispensaries, under the supervision of the National Directorate of Health Surveillance and Narcotics, as well as the National Directorate of Tax Revenue.

Psychedelic Sector Update

1#) Awakn Life Sciences Advances Therapeutics for Substance Use and Mental Health Disorders:Awakn Life Sciences Corp. a biotechnology company, has reported progress in its research and development programs targeting Alcohol Use Disorder (AUD) and Post-Traumatic Stress Disorder (PTSD).

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