Week In Review: Minnesota Considers Allowing Liquor Wholesalers to Distribute Low-Potency Hemp Edibles; Cronos Group Reports $8.7 Million in Operating Expense Savings for FY2024; Compass Pathways Projects FY2025 Net Cash Use of $120M-$145M

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) Minnesota Considers Allowing Liquor Wholesalers to Distribute Low-Potency Hemp Edibles: A bipartisan bill introduced in the Minnesota House of Representatives seeks to permit licensed liquor wholesalers to distribute low-potency hemp edibles. Sponsored by Representatives Zack Stephenson (D) and Nolan West (R), House File 1735 aims to integrate these hemp-derived products into the existing liquor distribution framework.

#2) Cronos Group Reports $8.7 Million in Operating Expense Savings for FY2024: Cronos Group Inc. has announced operating expense savings of $8.7 million for the fiscal year 2024, aligning with its previously stated target range of $5 million to $10 million. These savings were primarily achieved through reductions in general and administrative costs, research and development expenditures, and sales and marketing expenses.

#3) Compass Pathways Projects FY2025 Net Cash Use of $120M-$145M: Compass Pathways plc a mental health care company specializing in psilocybin therapy, has announced an expected net cash utilization of $120 million to $145 million for the fiscal year 2025. As of February 27, 2025, the company’s cash reserves are projected to support operational and capital expenditures through the anticipated 26-week data readout from the COMP006 study, scheduled for the latter half of 2026.

#4) Arizona’s Cannabis Sales Experience Downturn in 2024: In 2024, Arizona’s combined medical and adult-use cannabis market saw a decline, with total sales amounting to $1.1 billion, a decrease from the nearly $1.3 billion recorded in both 2022 and 2023.

#5) New Jersey Governor Proposes Increase to Cannabis Social Equity Tax:Governor Phil Murphy has proposed raising New Jersey’s social equity excise fee on cannabis from $2.50 to $15 per ounce. This proposal aims to generate additional revenue for social service and violence intervention programs.

#6) Industrial Hemp Regulation Undergoing Comprehensive Review:The regulatory framework governing industrial hemp is currently under extensive review, aiming to address emerging challenges and align with evolving industry practices. This initiative seeks to refine existing policies to better support the hemp sector while ensuring public safety and compliance.

#7) New Study Suggests Medical Cannabis Highly Cost-Effective Treatment for PTSD: A recent study highlights the affordability and effectiveness of medical cannabis as a treatment for individuals with moderate post-traumatic stress disorder (PTSD).

#8) Cannara Biotech Extends BMO Credit Facility and Convertible Debenture to Strengthen Financial Position:Cannara Biotech Inc. has announced the extension and amendment of its existing credit agreement with the Bank of Montreal (BMO) and a convertible debenture with Olymbec Investments Inc. These strategic financial adjustments aim to enhance the company’s liquidity and support its long-term growth objectives.

Psychedelic Sector Update

1#) Emerging Policies Reshape the Psychedelics Industry:The psychedelics sector is undergoing significant transformations due to evolving regulatory policies and scientific advancements that could redefine their therapeutic applications. A notable development occurred in August 2024 when the U.S. Food and Drug Administration (FDA) declined approval for MDMA-assisted therapy for post-traumatic stress disorder (PTSD), citing the need for additional research to substantiate its safety and efficacy.

To have all our content delivered right to your inbox, and never miss a beat, subscribe to our newsletter at highlycapitalized.com  Stay tuned to Highly Capitalized for more updates as the cannabis and psychedelic industries continue to shape the future at the intersection of wellness and innovation. Subscribe to our newsletter and follow us on LinkedIn.