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Legalization in the UK could generate £1.5 billion 💰

Plus, the six states that will drive cannabis industry growth

Author

Jeremy Berke
March 05, 2025

Good morning.

Happy US-Canada Trade War day to all those who celebrate. Cultivated is a cross-border publication, so we obviously think this is a terrible policy. It needs to be said. 

And, last night cannabis didn’t make it into President Trump’s address to Congress, despite recently-released Marc Fogel appearing as a guest of the First Lady.

Today, at 10 AM the New York Medical Cannabis Industry Association is gathering in Albany to “highlight the deterioration of New York’s medical cannabis program and call for immediate action,” from Governor Kathy Hochul. 

-JB & JR

This newsletter is 796 words or about a 7-minute read. 

💡What’s the big deal?

UNITED KINGDOM
Legalization in the UK could generate £1.5 billion 💰

Driving the news: Legalization in the United Kingdom could add £1.5 billion to the Treasury through tax revenue and cost savings from enforcement, a new report from Transform Drug Policy, a nonprofit.

Go deeper: The report also finds that legalized cannabis could create up to 15,500 jobs — depending on the regulations implemented — and would displace 80% of the illicit market within five years based on data from Canada. Read more. 

But, but, but: Legalization in Europe and the UK is a massive opportunity for Canadian cannabis firms, who want to take advantage of lucrative export markets.

But new German Chancellor Friedrich Merz, wants to take the country backwards. He has bigger fish to fry at the moment, but that may be a dismal sign for the prospects of other European nations.

-JB

💬 Quotable

“ I would never argue with a free market situation, but I would argue with saying one thing and doing another,” Chelsea Cannabis Co founder Daniel Morena told Gothamist, about New York state regulators granting exceptions to the rule that dispensaries must be 1,000 feet apart.

⏩ Quick hits

California increases legal cannabis production by double digits  🥊

Legal cannabis production in California increased by 11.8% to 1.4 million pounds in 2024, according to a new report commissioned by the state’s Department of Cannabis Control, reports MJBizDaily. That’s despite the still-persistent illicit market in one of the country’s most mature legal cannabis states. The report also finds that the federal ban on interstate commerce hurts profitability for legal operators.

Ohio Republicans defend changes to cannabis regulations 👀

Ohio Republican lawmakers defended changes to voter-passed regulations governing the state’s cannabis industry, saying that the ability for Ohioans to buy cannabis products from legal dispensaries will remain “unchanged.” The bill, passed by the Senate, would roll back the number of plants residents are able to grow at home and would levy additional penalties on public cannabis consumption.

🤝 Deals, launches, partnerships

British American Tobacco completes investment in Organigram 🚀

Canadian cannabis firm Organigram said British American Tobacco completed the third tranche of its planned $125 million (CAD) investment. The latest tranche values Organigram shares at $3.22 each and amounts to $42 million. The investment will go to fund Organigram’s Jupiter Pool, which will “accelerate Organigram’s” international investments. Organigram’s Canadian competitors like Aurora have sought to expand to international medical cannabis markets. 

GTI opens Nevada dispensary 🤝

Green Thumb Industries opened a RISE dispensary in Henderson, Nevada on Tuesday. The location will hold an official grand opening on March 8. 

ILGM and Leafly kick off home grow tour 🌿

I Love Growing Marijuana and cannabis information site Leafly are kicking off a nationwide tour to educate people about growing cannabis at home. Read more.

🏃‍♂️ People moves

Auxly is hiring for a number of roles, including Product Coordinator and Marketing Operations Coordinator. Check out the job descriptions from Cam MacNeil on LinkedIn.

📉 Chart of the day

Six state markets will contribute to 75% of US cannabis industry growth over the next three years, according to data from LeafLink. New York, New Jersey, Illinois, Maryland, Ohio, and Minnesota will add a combined 5,000 dispensaries and contribute over $6.5 billion of sales by 2027.

Check out the graphic below and download LeafLink’s full The State of the U.S. Cannabis Industry report.

😜 One fun thing

Curaleaf CEO Boris Jordan is teasing a new hemp product launch on X. Curaleaf, and many of its competitors, are jumping into the hemp-derived THC products, as they are less regulated than traditional state-legal cannabis despite having the same cognitive effects on consumers.

📰 What we’re reading

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