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Cannabis capital raises fall again, but glimmers of change emerge

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Capital fundraising across cannabis is still down year-over-year, according to ongoing market research by Viridian Capital Advisors, with 124 capital raises over the last 12 months (LTM), compared with 176 deals for the same period a year ago. But there has been at least one bright spot in the industry: Cannabis agriculture technology firms recorded a 400% increase in raises.

Another potential positive? The LTM dollar amount of capital raises across sectors is only down 0.7% year-over-year, to $2.12 billion from $2.13 billion, a signal that investor wariness may be beginning to level off.

In agriculture technology, Viridian reported that there were five capital raises secured in the past 12 months, for a combined value of $13 million, a major increase from the lone deal in the year before that, which was worth $1.6 million.

Every other sector across cannabis saw a decrease in the number of capital raises inked, Viridian reported.

At the other end of the spectrum, the biggest loser in the cannabis investment wheel was hemp, which drew just two capital raises in the past year, down from 11 the year prior, an 82% decline. The raises this year in hemp totaled just $4.5 million, down from $137.9 million the year before, Viridian reported.

The upshot is that the hemp trade continues “the pounding the sector has been taking as more states regulate and/or ban intoxicating hemp products,” Viridian wrote in an email to readers.

The largest number of overall capital raises in the past year were completed in the retail and cultivation sectors, in which the number of deals went down to 49 from 68 the year prior, but the value of the combined investments went up, to $1.2 billion from $1.1 billion.

The second most attractive sector was biotech and pharma, which saw 30 capital raises secured for a value of $185 million, down from 32 raises but again up in terms of overall value from $129 million. In third place was software and media, which secured 15 capital raises for a value of $78 million, down from 18 raises at a value of $131 million.

The only other sector that saw a value increase in capital raises was investments/M&A, where two deals worth $216 million were a noticeable uptick from the five deals worth $105 million the year prior.

All the other sectors tracked, including psychedelics, real estate, consumption devices, infused products and miscellaneous ancillary all saw decreases in both the number of capital raises and their dollar values, Viridian reported.



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Appeals court ruling deals blow to Cannabis Commission – Cannabis Business Executive

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Virginia lawmakers renew push for legal cannabis marketplace – Cannabis Business Executive

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Massachusetts regulators order single-lab testing to combat cannabis lab shopping

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Massachusetts regulators will require cannabis businesses to use a single laboratory for all compliance testing in an effort to prevent companies from shopping around for favorable test results.

The state’s Cannabis Control Commission voted 3-0 to require licensed businesses submit testing samples to one independent laboratory starting April 1, 2025, according to an administrative order advanced Thursday. The new rule is meant to close loopholes that some say have allowed companies to shop around for labs to juice their numbers for market share.

“This administrative order continues our mission of being a strong regulator,” Acting Executive Director Debbie Hilton-Creek said in a statement.

Under current rules, companies can split testing among multiple labs. The practice has led some facilities to report suspiciously high THC levels or overlook contamination to attract business.

The commission’s enforcement team said the changes would reduce risks of noncompliant products reaching consumers and improve audit capabilities. The move follows a November listening session in which testing concerns were raised, according to the announcement.

If an original testing lab needs to subcontract work, they must first obtain commission approval and demonstrate they are “incapable of performing certain required tests due to a hardship.” Labs also can only subcontract with one other facility at a time.

“The commission shall only approve subcontracting agreements when the Originating Independent Testing Laboratory is incapable of performing certain required tests due to a hardship relative to its facilities, instrumentation, personnel, or required consumable materials or in the event of an actual or potential conflict of interest,” according to the order.

Results must be uploaded to the state’s tracking system within 72 hours, with all certificates of analysis containing the complete testing results, including any subcontracted work, it said.

The commission will also begin publishing THC test results on its public data platform and establishing regular meetings with licensed laboratories to improve oversight.

The commission thus far has struggled to implement effective testing oversight. Earlier this year, the agency contracted with a private lab for a “secret shopper” program to verify retail products’ test results, Green Market Report previously reported. Unlike other major cannabis markets such as California and Colorado, Massachusetts lacks a state reference lab to independently verify commercial lab results.

Analysis of testing data by MCR Labs found that across multiple states, laboratories reporting higher THC concentrations tend to increase their market share while those reporting average failure rates lose business, according to Chemical & Engineering News.



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