Week In Review: TILT Holdings Divests Massachusetts Dispensaries for $2 Million; California Cannabis Industry Faces Potential Crisis Amid Proposed Tax Increase; New Mexico House Bill 331 Proposes Mandatory Labor Peace Agreements for Cannabis Businesses

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) TILT Holdings Divests Massachusetts Dispensaries for $2 Million: TILT Holdings Inc., a cannabis business solutions provider, has entered into an agreement to divest two of its Massachusetts dispensaries to In Good Health, a private single-state cannabis operator, for $2 million in cash. Under the terms of the agreement, TILT will transfer ownership of its Taunton dispensary to In Good Health and close its Brockton location. The transaction is expected to close in the first half of 2025, pending customary regulatory approvals.

#2) California Cannabis Industry Faces Potential Crisis Amid Proposed Tax Increase: The legal cannabis industry in California is confronting significant financial challenges as a proposed increase in the state excise tax looms. Currently set at 15%, the tax is scheduled to rise to 19% on July 1, 2025, unless state lawmakers intervene.

#3) New Mexico House Bill 331 Proposes Mandatory Labor Peace Agreements for Cannabis Businesses: New Mexico House Bill 331 was introduced, proposing that cannabis establishments with ten or more employees be required to enter into, maintain, and adhere to labor peace agreements with bona fide labor organizations. This requirement would become a material condition for licensing, with non-compliance potentially leading to license refusal, suspension, or revocation.

#4) Minnesota’s Cannabis Office Initiates Grant Program for Communities Affected by Prohibition: The Minnesota Office of Cannabis Management (OCM) has introduced the CanRenew Community Restoration Grants, a program designed to support communities disproportionately impacted by past cannabis prohibition policies. In 2025, the program will allocate up to $1 million, with individual grants ranging from $50,000 to $200,000 per project.

#5) Montana Lawmaker Proposes Consumer Registration and Surveillance for Cannabis Purchases: A Republican lawmaker in Montana has introduced legislation that would require individuals aged 21 and older to register with the state Department of Revenue and pay a $200 annual fee to legally purchase cannabis. The proposed bill mandates that consumers obtain a registration card, which must be presented at the point of sale. Retailers would be responsible for verifying the validity of these cards before completing any transaction. Failure to comply with these requirements could result in penalties for both consumers and retailers.

#7) Maine Governor Advocates for Enhanced Regulation of Medical Cannabis Program: In her recent State of the Budget address, Governor Janet Mills characterized Maine’s medical cannabis program as the “wild, wild west,” advocating for increased regulation to ensure consumer safety. She proposed implementing mandatory testing and tracking measures, similar to those in the state’s adult-use cannabis market, to address concerns about product safety and market oversight.

#8) Idaho House Advances Bill Imposing $300 Minimum Fine for Cannabis Possession: The Idaho House of Representatives has passed House Bill 7, which mandates a minimum fine of $300 for adults convicted of possessing three ounces or less of cannabis. Rep. Bruce Skaug (R-Nampa) introduced the bill, which aims to establish a consistent penalty for low-level cannabis offenses.

#9) Calgary Considers Permitting Cannabis Sales at Adult-Only Events: Calgary city officials are evaluating a proposal to permit the sale of cannabis at adult-only events. Councillor Kourtney Penner has introduced a motion requesting city administration to draft bylaw and business license amendments that would align with provincial regulations established in January 2024. These provincial rules, set by Alberta Gaming, Liquor and Cannabis (AGLC), allow licensed cannabis retailers to apply for temporary store licenses to sell products at events restricted to adults.

#10) Germany’s Evolving Cannabis Landscape in 2025: In 2025, Germany’s cannabis sector is experiencing significant developments following the enactment of the Cannabis Act (Cannabisgesetz) on April 1, 2024. This legislation permits adults aged 18 and over to possess up to 25 grams of cannabis in public, store up to 50 grams at home, and cultivate up to three plants for personal use. Additionally, non-profit Cannabis Social Clubs with a maximum of 500 members have been established, allowing collective cultivation and distribution among members.

Psychedelic Sector Update

1#) Canada Invests Nearly $3 Million in Psilocybin-Assisted Psychotherapy Research: The Government of Canada, through the Canadian Institutes of Health Research (CIHR), has committed nearly $3 million to fund three clinical trials investigating psilocybin-assisted psychotherapy as a treatment for various mental health and substance use disorders.

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