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Good morning folks, it’s Friday, so let’s roll into the weekend with the latest on cannabis court drama and big market moves. Nicolás Rodríguez and Patricio Liddle here, with a federal case challenging marijuana prohibition, Texas senators calling hemp "uncontrollable," and the pre-rolls market poised for $4B. Plus, the VA eyes new MDMA-PTSD trial funding. Scroll for your weekly dose of cannabis and psychedelics updates.

Interstate Pot Song

On December 5, the First Circuit will hear a case challenging federal marijuana prohibition, set to hit the courts just three days after Biden’s cannabis rescheduling hearings. Industry players like Verano Holdings (OTC: VRNOF) and Green Thumb Industries (OTC: GTBIF) argue the current federal stance is just a lie—too outdated for today’s markets.

Yet the DOJ warns a win could trigger marijuana tourism as out-of-state buyers drive to legalized states, pushing cannabis into interstate love territory.

The potential for cross-border sales, or pot pilgrimages, would upend federal control and could put Schedule III rescheduling plans on pause. If the ruling sparks a new era of interstate sales, it may give the cannabis market more miles away from strict federal reach.

Blunt Brief: MariMed, REFI & Safe Harbor

As Illinois cannabis struggles to keep per capita sales competitive, MariMed’s (OTC: MRMD) $7.7M expansion may help turn the tide in this $496M market. MariMed’s Illinois sales account for 40-45% of its total, with plans for a new 14,000 sq. ft. cultivation site in early 2025 to strengthen its presence. Despite market stagnation, MariMed’s in-house brands, launched this year, have performed well, particularly in vapes, which led Q3 with $4.9M in sales.

Meanwhile, Chicago Atlantic (NASDAQ: REFI) bolsters cannabis lending with a $50M loan, securing a BBB+ rating, and enhancing liquidity for future investments. Finally, Safe Harbor Financial’s (NASDAQ: SHFS) $30M acquisition faces legal turmoil, jeopardizing its reputation and future deals.

Roll Call: U.S. Pre-Rolls Primed for $4B by 2025

Custom Cones USA predicts U.S. pre-roll sales will follow Canada’s lead, potentially hitting $4 billion by 2025. Driven by convenience and enhanced quality, pre-rolls are rising in popularity, especially with infused options. COO Fredrik Rading notes, “Pre-rolls are here to stay.”

Texas Hemp on Trial: Senator Calls for Crackdown on 'Uncontrollable' $8B Market

Texas Senator Charles Perry has called the $8B hemp market "uncontrollable," proposing a ban amid regulatory struggles. While Perry criticizes the industry’s oversight, Cynthia Cabrera of Hometown Hero argues products meet state testing standards, with certificates of analysis available to health authorities. Limited resources mean the Texas Department of State Health Services inspects hemp businesses only every five years, adding to the strain. As Delta-8's legality awaits a Supreme Court ruling, the future of Texas hemp hangs in the balance.

VA Considers Funding for MDMA-PTSD Trial After FDA Rejection

The VA is open to funding a new MDMA-PTSD trial with Lykos Therapeutics after the FDA denied the company’s initial application. Dr. Shereef Elnahal, the VA’s undersecretary for health, expressed interest in supporting veterans' access to alternative PTSD treatments, offering hope for both Lykos and affected veterans.

Weekend Weed Reads:

• Puerto Rico's Governor Advocates For Decriminalization Of Controlled Substances, Amid Fentanyl Crisis

• Urban Outfitters Brings Marijuana To The Mainstream With DaySavers' Pre-Rolls In Stores And Online

• That Must Have Hurt: Unlicensed Cannabis Shop Owner Slapped With $9.5M Fine

• Research Finds No Clear Correlation Between Blood THC And Driving Skills

Our Writers Today

Nicolás holds a B.A. in International Relations, an M.A. in International Affairs, and an M.Phil in Public Policy. He is a doctoral student in Public and Urban Policy at The New School in New York City. After working for the United Nations in 2014, Nico pivoted his research to studying the relationship between the cannabis industry and economic development.

Patricio is a development economist with extensive experience in IT, finance, and banking. He writes about the economic and social opportunities obscured by over half a century of failed drug prohibition. Beyond his professional expertise, Pato is a committed advocate for social change, passionately working to promote harm reduction and reform drug policies.

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