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It's Monday, and the cannabis world is already buzzing with updates that could reshape the market. Organigram’s massive acquisition, the DEA’s looming hearings, and Canada’s cannabis dominance are just the start. And before we dive in—let’s give a big shoutout to Benzinga's own Javier Hasse, who was honored as Cannabis Journalist of the Year at the Emjays International Cannabis Awards in Vegas last week. We are Nicolás Rodríguez and Patricio Liddle and we have the stories that matter today. Whether you're sipping your coffee or gearing up for the week, catch up on the news making waves, and keep an eye on what’s to come. Let’s dive in!

DEA’s Big When: Will Interstate Commerce Take The Hit?

The DEA’s cannabis rescheduling hearing begins on January 21, 2025, but controversy is already swirling over key exclusions and legal challenges. Critics argue that the process is flawed, with certain medical and advocacy groups being left out, while the DEA has excluded over 43,000 public comments. For a full breakdown of the hearing schedule and key participants, check out Juan Spínelli’s detailed article.

Meanwhile, attorney David Boies, famous for his role in the same-sex marriage case, is reviving a landmark case that challenges federal cannabis laws. In Gonzales v. Raich (2005), the Supreme Court upheld federal power to regulate cannabis, even in states with medical marijuana laws. Boies argues that with 24 states now legalizing recreational cannabis, the precedent is outdated. He claims that today’s legal landscape warrants a re-evaluation, which could have significant implications for the industry, particularly around tax burdens and interstate commerce.

Organigram Buys Motif, Gains +20% Vape Market Share

Organigram (NASDAQ: OGI) is making a major play to dominate Canada's cannabis market, acquiring Motif Labs for $71M. With Motif’s strong position in vapes (21.2% market share) and pre-rolls (9.4%), this acquisition significantly boosts Organigram’s competitive edge. The deal promises to enhance its nationwide presence, improve production capabilities, and unlock potential for international growth. But how will these moves translate to long-term leadership? Jelena Martinovic dives deep into the details.

State Cannabis Snapshots: Mixed Signals Across Key Markets

The cannabis landscape is showing varied trends across major U.S. markets. In Massachusetts, sales dipped slightly to $152 million in November, with the average price per gram falling to $4.58—the lowest since 2020. Increased competition from 53 new dispensaries has also pressured average revenue per location. Meanwhile, New Mexico experienced a modest 2% decline in November sales, totaling $48 million, though annual figures are up by 3%. Dispensaries like Schwazze remain pivotal despite stable monthly revenues.

Over in Illinois, the market is rebounding with October sales reaching $142.3 million, up 4.2% from September. Governor Pritzker highlights the sector’s role in economic justice, supported by over 30,000 jobs and the expungement of 800,000 cannabis-related charges. 

In New York, the Cannabis Workforce Initiative is making strides by certifying over 1,100 workers, yet the industry grapples with hurdles. A legal dispute is brewing over a $20 million fee for adult-use cannabis licenses. The New York Medical Cannabis Industry Association (NYMCIA) argues the fee unfairly burdens original medical cannabis operators, many of whom can't afford to transition to adult-use licenses. As a result, medical dispensaries are closing or reducing hours, affecting patient access.

Finally, Kentucky faces transparency challenges as the state withholds names of dispensary applicants, raising concerns about fairness and out-of-state dominance.

Legalize It, Commoditize It

Canada's cannabis dried flower exports reached a record $20.18 million in October 2024, positioning total exports to surpass $187.5 million by the end of the year, up from $120 million in 2023. In 3Q24, exports amounted to $51.5 million, marking a 106% year-over-year increase.

Germany, now accounting for 26% of these exports, saw prices for Canadian dried flowers rise to $2.55 per gram. Meanwhile, cannabis extract exports, including oils and vapes, fell to $32.02 million for the first nine months of 2024, a 23% decline from the same period in 2023. Canada’s reliance on raw flowers is a double-edged sword—while it’s profitable now, future growth depends on adding value through oils and extracts. 

Monogram: Requiem For A Dream

The cannabis community bids farewell to Monogram, Jay-Z’s ambitious venture that passed away far too soon at just four years old. Launched in 2020 with fanfare and luxury-priced handrolls, Monogram seemed destined for greatness. However, despite a lavish start and $50 “OG Handrolls,” the brand failed to gain traction. After a series of financial missteps and mounting losses, it succumbed to the harsh realities of the cannabis market. Monogram’s parent company, couldn’t survive the smoke and mirrors, leaving behind a legacy of what could have been. Jay-Z may continue to thrive in other ventures, but Monogram will forever be remembered as a cautionary tale: luxury cannabis just couldn’t stay lit.

Stories In The Spotlight:

• DeSantis, Trump Mend Fences After Florida Cannabis Split While Pete Hegseth Scandal Deepens

• Portland Launches Nation's First Psilocybin Service Center Combining Mindfulness Practices

• Benzinga's Javier Hasse Recognized As 'Cannabis Journalist Of The Year' At Emjays International Awards In Vegas

• Cannabist Launches Flower By Edie Parker's Best-Selling 'Petal Puffer' Vape And More In Virginia And Colorado

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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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