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Cannabis, psychedelics on the ballot in seven states

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Election day is just a month away, and this year millions of voters will decide the fates of at least seven pro-cannabis and psychedelic ballot measures in states across the nation.

Here’s a quick look at the measures up for consideration and what the various initiatives would do.

Arkansas

Issue 3, as it’s formally known in Arkansas, is one of the few proposed ballot measures still up in the air due to a legal battle between supporters and the secretary of state over how many signatures were submitted to get the question before voters.

The most recent development was just last week, when the state Supreme Court ordered the secretary of state to finish counting roughly 18,000 additional signatures that were disqualified by what the campaign called an “arbitrary” technicality. It’s not yet clear who will win out in that battle.

If ultimately successful, Issue 3 would expand the state’s existing medical marijuana program, making it easier for more patients to obtain recommendations and purchase legal cannabis. It would also legalize home cultivation.

Florida

Amendment 3, which has been primarily bankrolled by multistate operator Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF), would legalize recreational marijuana in Florida. The amendment has one of the highest bars to clear, needing at least 60% of voter support to win, because it’s an amendment to the state constitution.

The ballot question has divided the Republican Party. Gov. Ron DeSantis has been a vocal opponent, but former President Donald Trump has thrown his support behind the measure.

If approved, the amendment would legalize the purchase and possession of cannabis for anyone 21 and over, but home cultivation would remain prohibited. The amendment would also allow lawmakers to authorize more cannabis business permits, but the existing 26 licensed medical marijuana companies would get first crack at recreational sales.

Massachusetts

Question 4 in Massachusetts could make the state the third in the nation to legalize some psychedelic drugs, following Oregon and Colorado.

If approved, the initiative would legalize personal possession and consumption of psilocybin, psilocin, mescaline, ibogaine and dimethyltryptamine (DMT). Large-scale commercial production and sales would remain prohibited, however, and the only sales would be permitted strictly at licensed health care facilities, which would also oversee patient use of the drugs.

Home cultivation of some psychedelics, such as magic mushrooms, would also be allowed starting in December. The larger health care rollout would be phased in over multiple years and wouldn’t be complete until 2028 at the earliest.

Nebraska

Nebraska voters have a pair of questions related to medical marijuana: Initiative 437, which would legalize medical possession and use of cannabis, and Initiative 438, which would set up a new regulatory structure for private companies.

The initiatives may still get yanked off the ballot before Election Day, however, due to an ongoing investigation by the state attorney general’s office into possible signature-gathering fraud.

If the measures remain and are approved, they would establish yet another state cannabis market in one of a few remaining states with essentially zero legal marijuana. Similar ballot measures in the state failed to qualify for the ballot in 2020 and 2022.

North Dakota

Measure 5 would legalize recreational marijuana in North Dakota. Voters rejected similar measures at the ballot box in 2018 and 2022, but the state did adopt medical cannabis in 2016.

If approved, the state would be required to issue industry regulations by October of next year for up to seven grow operations and 18 recreational retailers. It would also allow home cannabis cultivation.

The campaign behind the measure, New Economic Frontier, argued that the measure would help redirect law enforcement resources to more pressing issues, such as combatting the opioid crisis. An opposition campaign, The Brighter Future, simply pointed out the previous voter rejections.

Oregon

Measure 119 is perhaps the only tangential statewide ballot measure related to the cannabis or psychedelics industries that would not legalize any new substance. Rather it is aimed at making it easier for workers in the existing marijuana trade in Oregon to join labor unions.

If approved, the new law would require cannabis retailers and processors – but not farmers – to submit signed labor peace agreements to the state as evidence that they’re remaining neutral when workers debate whether to join a labor union.

The initiative has the backing of the United Food and Commercial Workers, which has been organizing marijuana industry employees for years.

South Dakota

Initiated Measure 29 would legalize recreational marijuana in South Dakota, another state that’s on its third attempt to do so.

Voters first approved adult-use cannabis in 2020, the same year voters approved medical marijuana legalization, but it was struck down by the courts after a challenge from Gov. Kristi Noem and other opponents. A second attempt in 2022 fell short at the ballot box.

If activists are successful this time around, the measure would broadly legalize adult-use cannabis and home cultivation, but most regulatory and industry details would be left to the legislature to determine,  such as license caps and marijuana product tax rates.



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Arkansas

Arkansas medical marijuana sales down year-over-year through October

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Arkansas medical marijuana sales are down slightly year-over-year through the end of October, according to newly released state data, which shows total cannabis sales for 2024 at $227.8 million, as opposed to $234 million for the first full 10 months of 2023.

According to the Arkansas Department of Finance and Administration, the state’s 37 dispensaries sold $23.9 million worth of cannabis in August, followed by $21.9 million in September and $23.4 million in October. While those figures are all up from a summer lull, the actual volume of marijuana products being purchased has increased solidly.

“While the overall spend is down this year, there is a significant year to year increase in total pounds purchased, reflecting lower prices,” Scott Hardin, spokesperson for the ADFA, said in a press release. “We will have to see two extremely strong months in November and December to surpass the 2023 sales record of $283 million.”

Dispensaries sold a combined 19,516 pounds of medical marijuana between August and October, the ADFA announced, including 6,714 pounds in August, 6,196 pounds in September and 6,606 pounds in October.

Total medical marijuana sales in Arkansas have topped $1.2 billion thus far since the market launched in 2019, Hardin said.

The Arkansas cannabis market had a chance to expand even more this year through a proposed ballot measure, but that initiative was nullified even though it appeared on the November ballot, due to a state Supreme Court ruling last month which found that the ballot measure name and title were misleading.



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Arkansas

The Daily Hit: November 20, 2024

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The Daily Hit is a recap of the top financial news stories for Wednesday, November 20, 2024.

On the Site

Village Farms, veterans group challenge DEA’s role in cannabis rescheduling

The motion argues that the DEA has “stacked the deck” against rescheduling efforts.

Read more here.

FDA approves clinical trials for medical cannabis to treat PTSD in military veterans

MAPS has been fighting for approval from the agency for three years.

Read more here.

LoneStar Farms loses legal battle with CenTex CBD

LoneStar Farms has been ordered to pay CenTex over $100,000 when the company originally only wanted a $3,400 refund.

Read more here.

Minnesota cannabis office could face legal action from rejected license applicants

An attorney who assisted some of the rejected applicants said the state offered “flimsy” excuses for some rejections.

Read more here.

Psyence Biomedical to consolidate shares in bid to keep Nasdaq listing

The consolidation follows Psyence’s March debut on the Nasdaq through a SPAC merger with Newcourt Acquisition.

Read more here.

Arkansas medical marijuana sales down year-over-year through October

Total medical marijuana sales in Arkansas have topped $1.2 billion thus far since the market launched in 2019.

Read more here.

Earnings:

In Other News

US Cannabis Council

The US Cannabis Council hired Mercury Public Affairs to lobby on issues related to the cannabis industry. The lobbyist on the account is Bryan Lanza, who served as communications director for President-elect Trump’s first transition team.

Read more here.

California consumption lounges

Sacramento city leaders passed an ordinance in a controversial 5 to 4 decision — with Mayor Darrell Steinberg casting the deciding vote — that will allow the social consumption of marijuana at select dispensaries.

Read more here.

MindMed

Mind Medicine appointed Gregg A. Pratt, Ph.D., as its chief regulatory and quality assurance officer. Pratt will oversee the company’s regulatory and quality functions, as well as its product registration strategies.

Read more here.



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Arkansas

The Daily Hit: October 8, 2024

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News from: Mississippi, New York City, Talaria Transportation, Delivra Health and more.

The Daily Hit is a recap of the top financial news stories for Tuesday, October 8, 2024.

On the Site

Mississippi cannabis ad ban gets its day in federal appeals court

A federal judge dismissed the lawsuit earlier this year, leading to the appeal.

Read more here.

New York City launches new loan program for social equity dispensaries

CAURD licensees can apply for an “unrestricted” low-interest online, but only until Nov. 4.

Read more here.

Arkansas governor appoints temporary judges for cannabis ballot question case

Two justices recused themselves from the case without providing reasons for the moves.

Read more here.

Cannabis industry breathes sigh of relief over East Coast port strike ending

An already vulnerable industry dodged the shipping bullet after the dockworkers union and the shipping lines reached a tentative agreement.

Read more here.

Talaria Transportation acquires Missouri cannabis distributor

Talaria operates in 28 states that have legal cannabis programs.

Read more here.

Cannect Wellness raises $7M, plans expansion in Illinois

Cannect plans to launch new product lines later this year after finding some fresh funds.

Read more here.

Earnings:

In Other News

PharmaCielo Ltd.

PharmaCielo Ltd. will change its financial year end from Dec. 31 to March 31 to better align with the reporting cycle of its peers. The Company’s next financial year will cover the period from April 1, 2024, to March 31, 2025.

Read more here.

Green Check

This quarter, Green Check surpassed $1 billion in monthly cannabis sales deposits for its network of more than 170 financial institutions across the nation, including adding new financial institution clients in nine states.

Read more here.



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