Green Thumb Grows While Others Flatline, Psychedelic Research Gains Momentum, Tilray's THC Drinks

Hey there, Benzinga Cannabis community! It’s Maureen with all the must-know updates for today. From Green Thumb Industries’ impressive Q1 growth to some major policy shifts around psychedelics, things are buzzing in the industry. And let’s not forget the rising popularity of THC-infused beverages – Tilray’s got some exciting plans brewing (pun intended!). Plus, science is shaking things up in the cannabis world with the discovery of 33 genetic markers that could lead to next-gen cannabis strains. Let’s dive in!

In today's issue:

• 💸 Markets

• 🏛️ Politics & Policy

• 🧬 Industry & Innovation

🌿 Green Thumb Grows While Others Flatline

Green Thumb Industries Inc. (OTCQX: GTBIF) is turning heads with its Q1 performance. While most of its peers struggled or stagnated, GTI managed to grow – a rare feat in the current U.S. cannabis market. The Chicago-based company reported a 1% increase in revenue compared to Q1 2024, hitting $280 million.

A big part of this success is GTI's strong portfolio of in-house brands, which account for around 90% of their retail sales. Wholesale also played a crucial role, bringing in 29% of the total revenue. With a gross margin of 51.3% and an adjusted EBITDA margin of 30.5%, GTI has proven it’s not just surviving; it’s thriving.

As Zuanic & Associates put it, no other major player in the cannabis sector achieved positive growth during the same period. GTI’s operating cash flow of $43 million was the highest among Tier 1 operators, proving they know how to manage costs and stay financially healthy.

🌈 Psychedelic Policy Shifts in Washington

Big changes are afoot in Washington, and psychedelics are in the spotlight. Just recently, FDA Commissioner Dr. Marty Makary called psychedelic research a “top priority” as the government looks at mental health solutions in new ways. This shift is getting attention from both sides of the aisle, and even Texas has thrown in some serious support—approving $50 million in public funding for ibogaine trials aimed at treating PTSD and traumatic brain injury in veterans.

But the momentum doesn’t stop there. The Department of Veterans Affairs is also exploring psychedelic treatment vouchers for veterans, reporting “positive outcomes” from ongoing studies. And the cherry on top? Matthew Zorn, a high-profile attorney who has long challenged government secrecy on drug policy, has joined the Department of Health and Human Services as its “psychedelics czar.”

Doug Drysdale, CEO of Cybin Inc. (NYSE: CYBN), weighed in. “It is gratifying that the FDA Commissioner shares our belief in the potential therapeutic value of these innovative treatments… We agree wholeheartedly that the time is now to address the mental health crisis.”

The tide is turning fast in Washington, and the future of psychedelics in the U.S. is looking brighter than ever.

🏛️ California Moves to Delay Marijuana Tax Hike

California Assembly just passed a bill to delay a planned hike in marijuana taxes by five years. The move comes after state officials announced an increase in the cannabis excise tax from 15% to 19%, set to take effect in July. With a unanimous 74-0 vote, the Assembly has now sent the bill to the Senate for further consideration.

Advocates say they’re hoping that this delay will provide relief to the cannabis industry, which has faced significant challenges due to the current tax structure. The bill aims to postpone the hike until 2029, which could offer the sector much-needed breathing room.

🍹 Tilray’s THC Drinks Aren’t the New Beer—They’re Something Else

Cannabis beverages are not just a trend—they’re a strategy for Tilray Brands Inc. (NASDAQ: TLRY). The company’s senior VP of commercial operations, Sam Garfinkel, recently shared that hemp-derived THC drinks are just another option for adults looking to unwind, as beer consumption dips. Tilray is already a major player in the craft beer scene, but now they’re taking on the THC beverage space with brands like Happy Flower and Fizzy Jane.

“We’re fortunate to have a vast network of distributors, wholesalers, legal/regulatory experts, and food scientists,” Garfinkel said, clarifying that Tilray’s infrastructure gives it an edge in the market. And while THC doesn’t bring much flavor of its own, the company is experimenting with herbal ingredients to create new and exciting flavors—like their upcoming Happy Flower Mojito.

With its massive distribution network and strong R&D capabilities, Tilray is set to lead the way in cannabis drinks.

🧬 Scientists Identify 33 Genetic Markers for Cannabis Breeding

Here’s something pretty exciting for the future of cannabis! Scientists have identified 33 genetic markers in the cannabis genome that could help breed new strains with tailored cannabinoid profiles for both medical and recreational uses. This discovery, published in The Plant Genome, could revolutionize cannabis breeding, speeding up the process and making it far more cost-effective.

Researchers at Université Laval in Québec examined 174 cannabis specimens and identified markers tied to 11 different cannabinoid traits. This research represents a huge leap forward, especially considering how years of prohibition stunted cannabis genetic research.

With these markers in hand, breeders can now select for specific traits more efficiently—paving the way for even more customized cannabis strains in the future.

🧠 Cannabis and Psychosis: THC vs. CBD

A new study sheds light on how cannabis use can impact the development of psychosis, specifically schizophrenia. The research shows that THC exacerbates schizophrenia symptoms, while CBD has the opposite effect, alleviating those symptoms.

The study, published in Psychology Today, found that CBD could be as effective as antipsychotic drugs in treating schizophrenia with fewer side effects. This is huge news for both the medical cannabis community and patients who suffer from mental health conditions.

The findings emphasize the importance of the balance between THC and CBD, as the former can worsen symptoms, but the latter can help manage them. It’s a fascinating glimpse into how cannabis could become an essential therapeutic tool in the future.

🌿 That’s all for today, folks! Stay tuned for more updates tomorrow and as always, happy reading!

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