October brought new developments in the cannabis and hemp industries, with Georgia’s Hemp Farming Act coming into effect on October 1.
In California, Governor Newsom signed a bill legalizing Amsterdam-esque cannabis cafes, which will allow dispensaries to serve food and drinks and host live entertainment.
Meanwhile, Kentucky held its first lottery for medical cannabis business licenses as the DEA prepared to hold a hearing on rescheduling cannabis, and Vice President Harris included cannabis legalization in her policy agenda.
Keep reading to discover more about these industry-shaping events.
Harris commits to federal cannabis legalization
US Vice President Kamala Harris, who spent the better part of her career as a prosecutor in California, included legalizing recreational cannabis on her list of changes she would implement if elected president.
She shared the list via a post on X, formerly known as Twitter, on October 24, the same day as Willie Nelson hosted the virtual event “Cannabis Community for Kamala” via Zoom at his ranch in Texas.
During the call, which also featured Whoopi Goldberg, a handful of US representatives and NFL running back Ricky Williams, Colorado Governor Jared Polis highlighted the contrast between Harris’s plan to reform cannabis policy and President Joe Biden’s limited action on the issue during his term.
Harris’ stance on legalization is the latest confirmation of her position on cannabis reform. Earlier this month, as part of her campaign’s effort to win over voters in swing states, she stopped in Erie, Pennsylvania, where she pledged to empower Black men by “fight(ing) to ensure that as the national cannabis industry takes shape, Black men — who have, for years, been overpoliced for marijuana use — are able to access wealth and jobs in this new market.”
DEA selects witnesses for landmark cannabis rescheduling hearing
Marijuana Moment reported on October 29 that the US Drug Enforcement Administration (DEA) has begun selecting witnesses for an upcoming cannabis rescheduling hearing, scheduled for December 2.
Various expert bodies that have asked to present their opinions at the hearing have been granted permission to do so, including the National Cannabis Industry Association, Smart Approaches to Marijuana, Community Anti-Drug Coalitions of America and the National Drug & Alcohol Screening Association.
The hearing will follow a 62 day public comment period. The move to reschedule cannabis was proposed by Biden in 2022 and has been endorsed by the US Department of Health and Human Services (HHS).
The DEA officially moved to reschedule cannabis from a Schedule I substance to Schedule III in May of this year after reviewing the HHS’ recommendation and conducting its own analysis.
Hemp Farming Act goes into effect in Georgia
The Georgia Hemp Farming Act, which regulates the cultivation, production and sale of hemp in Georgia, went into effect on October 1. The Act, passed in 2019, has been subject to several amendments since it was initially voted on.
The most recent amendment, Senate Bill 494, was passed this year.
The Hemp Farming Act establishes a state-level regulatory framework that includes licensing requirements for hemp growers and processors, as well as testing protocols for hemp products.
The act has also opened a market for hemp and hemp-derived products in Georgia, including CBD oil. The act is expected to have a positive impact on the state’s economy by creating jobs and stimulating economic growth.
California soon to open ‘cannabis cafes’
California Governor Gavin Newsom (D) has signed a bill legalizing “cannabis cafes.” Under the terms of Assembly Bill 1775, cities will be able to grant permits to licensed dispensaries that will allow them to serve non-alcoholic drinks and hot food, as well as host live performances such as comedy shows and concerts.
These establishments, similar to those found in Amsterdam, will further support the cannabis market in California. In Q2 alone, the market brought in taxes of US$263 million from over US$1.2 billion in taxable sales.
“Cannabis cafes are going to be a huge part of the future of cannabis in our state and help to beat back the illegal drug market,” assembly member Matt Haney (D-San Francisco), who authored the bill, told the Los Angeles Times.
The bill will go into effect in January 2025.
Illinois cannabis industry reports ‘explosive growth’
In its 2024 cannabis report, the Illinois Cannabis Regulation Oversight Office announced that its 2024 fiscal year “was a year of explosive growth in the cannabis industry.” The report highlights the opening of 82 new dispensaries and over US$2 billion in legal cannabis product sales in the state during the period.
“The State of Illinois cannabis industry experienced unprecedented growth in FY24, laying the foundation for continued future success in FY25 and beyond. IDFPR is honored to be a part of Illinois’ equity-centered program,” said Mario Treto, Jr., secretary of the Illinois Department of Financial and Professional Regulation.
Kentucky lottery awards first batch of medical cannabis licenses
Ahead of the launch of Kentucky’s medical cannabis program on January 1, 2025, Kentucky regulators held the first lottery for business licenses through its start-up medical cannabis program on October 28.
The lottery awarded 26 cultivation and processor licenses, and successful applicants now have 15 days to pay their license fees before being issued a medical license.
The lotteries to issue medical dispensary licenses will be held on November 25 and December 16 and will allow dozens of dispensaries spread out across the state to open.
“I want to tell those Kentuckians that have really needed this relief that help is on the way,” Beshear said during the drawing at the Kentucky Lottery Corporation in Louisville.
Delaware lottery awards cannabis business licenses
The Delaware Office of the Marijuana Commissioner (OMC) held a lottery to award business licenses on October 25, drawing from a pool of 727 applications out of roughly 1,200. Each business license type had its own lottery draw — apart from the open retail category — and the results were released on October 31. The Commissioner’s office explained that the open retail category had too many applications to process in time, necessitating a second lottery in December.
The successful applicants will now move on to the next phase of the licensing process, which involves background checks, financial reviews and site inspections. The OMC expects to issue the first cultivation facility licenses on November 1, product manufacturing licenses on December 1 and retail and testing facility licenses on March 1, 2025.
Earlier in October, Delaware’s Governor John Carney (D) signed House Bill 355, which provides state-level protections to banks that service cannabis businesses, supporting the state’s cannabis industry while the Federal SAFER Banking Act waits on the Senate floor.
Even without the passing of the SAFER Banking Act, the number of banks across the US working with state-legal cannabis businesses is growing, according to data collected by the Financial Crimes Enforcement Network (FinCEN) and reported by Marijuana Moment. FinCEN, which has been tracking cannabis banking trends for the last 10 years, revealed that 831 banks and credit unions reported involvement with the cannabis industry in Q2 2024, compared to 812 in Q2 2023, 815 in Q1 2024 and 799 in Q2.
Tilray Brands reports successful Q3
Tilray Brands (NASDAQ:TLRY) released its Q1 2025 financial results on October 10.
Overall, the company reported a strong performance, achieving US$200 million in net revenue and US$59.7 million in gross revenue, marking a 35 percent increase in annual growth.
Tilray saw particularly impressive growth in its beverage division. Tilray Beverages, which markets both alcoholic and non-alcoholic cannabis-infused drinks, surged 132 percent in net revenue including acquisitions. The company also improved its net loss by 38 percent, reflecting Tilray’s successful expansion in an evolving cannabis market.
“We believe that there is a greater likelihood that the upcoming U.S. Presidential elections will result in improved regulatory changes in the cannabis industry, as both candidates have publicly confirmed their support for further legalization,” said Tilray Brands’ chairman and CEO Irwin D. Simon. “We are optimistic about the future of the cannabis industry and look forward to the potential opportunities that lie ahead.”
Canopy Growth completes acquisition of Wana Wellness
Canopy Growth (TSX:WEED,NASDAQ:CGC), a major cannabis company listed on both the NASDAQ and the Toronto Stock Exchange, finalized its acquisition of Wana Brands, a US edibles manufacturer, on October 9.
This deal, announced in 2021, brings Wana and its subsidiaries Wana Wellness, the CIMA Group and Mountain High Products, under the full control of Canopy USA.
The acquisition strengthens Canopy’s position in the US cannabis market by adding a well-established edibles brand with a strong distribution network to Canopy’s growing portfolio.
Canopy made an initial payment of US$297.5 million with additional payments contingent on Wana’s performance and market value.
Following this strategic acquisition, Canopy Growth further solidified its financial standing by making a US$100 million prepayment on its term loan. This move, announced on October 17, reduced the company’s debt burden and extended the loan’s maturity date to December 2026.
SNDL acquires Nova Cannabis
In a move to streamline its cannabis retail operations, SNDL (NASDAQ:SNDL) acquired all remaining shares of Nova Cannabis, effectively taking Nova private and making it a wholly owned subsidiary of SNDL.
SNDL already held a major stake in Nova Cannabis. The acquisition, which was first announced in August 2024, is expected to generate significant cost savings for SNDL, as the privatization of Nova means SNDL will no longer be required to pay the expenses associated with Nova’s public status.
“The acquisition of Nova’s remaining minority interest represents a significant milestone that will streamline SNDL’s cannabis retail operations and generate material savings by eliminating public company expenses,” SNDL CEO Zachary George said.
“With a debt-free and cash-rich balance sheet, we are well-positioned to drive the continued expansion of our Canadian cannabis retail platform. We intentionally and successfully structured this transaction to incentivize shareholders to opt for cash, which further underscores our focus on accretive growth, allowing us to efficiently deploy capital without significant share dilution.’
Each Nova shareholder who opted for a cash payment received US$1.75 per share. Stakeholders were also given the option of exchanging their Nova shares for common shares of SNDL valued at US$0.58 per share.
TerrAscend completes second draw of debt financing agreement
TerrAscend (TSX:TSND,OTCQX:TSNDF), one of North America’s largest cannabis companies, completed the second draw of a US$140 million debt financing agreement with FocusGrowth Asset Management, a leading capital provider to the cannabis sector, securing an additional US$26 million.
The first draw, worth US$114 million, was granted in August 2024.
In a press release, the company said the second portion of the loan will be used to pay higher-interest debt for its facilities in Michigan, where the company has 20 locations.
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.