Cannabis Round-Up: DEA Postpones Rescheduling Hearing, Key Players Share Quarterly Results

DEA postpones cannabis rescheduling hearing

The US Drug Enforcement Administration's (DEA) hearing on the potential rescheduling of cannabis under federal law, originally set for December 2, has been postponed until early 2025.

The delay, announced by Chief Administrative Law Judge John Mulrooney II, was reported by multiple sources, including Marijuana Moment, on October 31. The judge cited a need for more information about the witnesses selected to testify, and expressed concerns about allegations of bias in the selection process.

A preliminary hearing was held on December 2, which the DEA described as “a procedural day to address legal and logistical issues and discuss future dates for the evidentiary hearing on the merits."

No witness testimony was involved on that date. The hearing is available for viewing online.

Trump to follow through on cannabis rescheduling

As President Joe Biden's term comes to a close, lawmakers and advocates are urging him to take bold action on cannabis reform before the incoming President-elect Donald Trump takes office.

A letter sent by progressives asks Biden to issue additional pardons for cannabis offenses, and to make broader regulatory changes to address the harm caused by current cannabis policies.

Meanwhile, an unnamed official "familiar with the Trump team’s plans" told the Washington Post on November 19 that the incoming administration intends to follow through on rescheduling cannabis.

Trump’s cabinet picks so far include cannabis advocate Robert F. Kennedy Jr. as secretary of the Department of Health and Human Services, which could mean advancement of reforms for cannabis and psychedelics.

Other choices include Dr. Mehmet Oz to oversee the Centers for Medicare and Medicaid Services. Oz also has a history of supporting medical cannabis and could advocate for its broader acceptance from the office.

However, newly elected Senate Majority Leader John Thune (R-SD) holds opposing views; he is against cannabis legalization and has even called for a reversal to the Biden administration's plan to reschedule cannabis. Additionally, he has criticized Democrats for their efforts to improve the industry's access to banking services.

Marty Makary, Trump’s pick for commissioner of the Food and Drug Administration (FDA), believes that cannabis is a "gateway drug" that causes mental health problems and cardiovascular issues. Former Florida Attorney General Pam Bondi, who Trump has chosen to serve as US attorney general, opposed legalizing medical cannabis in the state and has worked to prevent patient access to combustible cannabis.

Five states vote on cannabis measures in US election

Florida

Florida voters rejected Amendment 3, which would have legalized adult-use cannabis, with a final tally of 55.9 percent in support and 44.2 percent opposed. In Florida, a constitutional amendment requires 60 percent support to pass.

North Dakota

Measure 5, an initiative to legalize recreational cannabis possession and use, was turned down by 53 percent of voters.

South Dakota

South Dakota residents rejected Measure 29, a similar initiative that would have allowed the home cultivation of cannabis, but did not include measures for recreational sales. The final tally was 44 percent in favor and 52 against.

Nebraska

Voters in Nebraska opted to support Measures 437 and 438 to legalize and regulate medical cannabis in the state, with 71 percent and 67 percent voter approval, respectively. Despite attempts by state officials to invalidate a petition to include the measure on the ballot by arguing that 3,500 signatures were fraudulent, Lancaster County Superior Court Judge Susan Strong ruled that enough signatures were valid, and both measures passed on December 2.

Oregon

Oregon's Measure 119, an initiative aimed at unionizing cannabis workers, was successfully passed by voters. This measure grants employees in the cannabis industry the right to organize and form unions.

Kentucky awards next round of medical cannabis licenses

Kentucky awarded its first 36 medical cannabis dispensary licenses through a lottery held on November 25 at the Kentucky Lottery Corporation in Louisville. The next lottery will be held on December 16.

Patients began applying for medical cannabis certification on December 1.

Acreage provides update on Canopy acquisition

Acreage Holdings (CSE:ACRG.A.U,OTCQX:ACRDF) shared an update on its acquisition by Canopy USA, confirming that it expects the deal to be finalized in mid-December of this year.

However, due to a recent private placement that significantly diluted the value of Acreage’s fixed shares, the company said most shareholders are likely to receive nothing in the deal. Holders of floating shares are still expected to receive 0.045 shares of Canopy for each Acreage floating share they own, but in order to ensure that happens, they need to submit their share certificates and a letter of transmittal to the company's transfer agent.

FDA approves Phase 2 cannabis trial

On November 20, the FDA approved a Phase 2 clinical trial that will measure the success of smoked medical cannabis to treat PTSD in military veterans. The trial, which the FDA has objected to several times since 2021, is sponsored by the Multidisciplinary Association for Psychedelic Studies and is funded by a US$12.9 million grant from the Michigan Veteran Marijuana Research Grant Program, a research allocation from retail marijuana tax revenue.

Senate introduces alternative to 2018 Farm Bill

On November 18, the Senate Committee on Agriculture, Nutrition and Forestry released the Rural Prosperity and Food Security Act, a revamped version of 2018's Farm Bill. The new bill, introduced by Senator and Chair of the Committee Debbie Stabenow, focuses on climate-smart agriculture and includes provisions to provide more targeted support for small and medium-sized farms. It also defines hemp as “cannabis with a total THC concentration of not more than 0.3 percent on a dry weight basis,” a deviation from the Farm Bill’s definition, which includes THC and Delta-9 THC separately, leading to potential ambiguity in the regulation of hemp-derived cannabinoids.

The bill was read twice and referred to the Committee on Agriculture, Nutrition and Forestry.

SNDL completes Indiva acquisition

SNDL (NASDAQ:SNDL) closed its acquisition of Indiva on November 4.

“This acquisition reinforces SNDL's standing as a premier producer of cannabis products in Canada," said Zach George, CEO of SNDL. "By integrating Indiva's high-quality brands and production expertise into SNDL, we're broadening our product portfolio and solidifying our leadership in the infused edibles category.”

The acquisition includes Indiva's production facility and a portfolio of brands like Pearls by Grön, No Future and Bhang Chocolate. According to SNDL, the a deal was worth C$22.7 million, and will strengthen the company's position in the Canadian cannabis market, particularly in the edibles sector.

On November 5, the company reported its Q3 financial and operational results, which show a slight 0.3 percent decrease in net revenue compared to Q3 2023. The decline was attributed to low liquor sales, while cannabis operations and retail posted annual growth of 19.34 and 7.42 percent, respectively.

Cannabis companies release quarterly reports

Aside from SNDL, many other cannabis companies released their quarterly reports in November.

These reports provide valuable insights for investors and analysts looking to assess the health of the market.

• Green Thumb Industries (CSE:GTII,OTCQX:GTBIF) reported its Q3 results on November 7, revealing quarterly net revenue of C$286.87 million, up 4.2 percent year-on-year. The company also expanded its retail footprint to over 100 Rise dispensaries in November with the opening of two new locations in Nevada and Minnesota.

• TerrAscend (TSX:TSND,OTCQX:TSNDF) released its Q3 results on November 6, reporting net revenue of C$74.17 million, down 4.25 percent versus Q2, and free cashflow of C$1.47 million, its fifth consecutive quarter of positive free cashflow. The company said its net loss came in at C$21.42 million, over 71 percent higher than the last quarter, primarily due to reduced operating profit and several one-time non-cash accounting adjustments.

• Aurora Cannabis (TSX:ACB,NASDAQ:ACB) reported results for its second fiscal quarter of 2025 on November 6, outlining a 29 percent annual increase in net revenue to C$81.12 million, driven by 41 percent growth in global medical cannabis sales and 21 percent growth in its plant propagation business.

• Canopy Growth’s (TSX:WEED,NASDAQ:CGC)latest quarterly results, released on November 8, show a 10.1 percent year-on-year decrease in net revenue to C$62.99 million, as well as a net loss of C$128.29 million, an improvement of over 60 percent compared to the prior year.

• Verano Holdings (OTCQX:VRNOF)
• The Cannabist Company (OTCQX:CBSTF)
• Innovative Industrial Properties (NYSE:IIPR)
• Cresco Labs (CSE:CL,OTCQX:CRLBF)
• Leafly Holdings (NASDAQ:LFLY)
• Curaleaf Holdings (TSX:CURA,OTCQX:CURLF)
• AYR Wellness (CSE:AYR.A,OTCQX:AYRWF)
• Glass House Brands (OTCQX:GASF)
• Charlotte's Web Holdings (TSX:CWEB,OTCQX:CWBHF)