Key Takeaways; Cannabis Sector

• Cannara Biotech secured 5 vape cartridge listings in Québec market launch
• Cresco Labs exited California market amid industry challenges and strategic refocus
• MTL Cannabis announced a “new era” with record revenue and profit in 2025

Key Takeaways; Psychedelic Sector

• GH Research nears resolution with FDA, reporting promising long-term results in depression trial
• Clearmind expanded groundbreaking AUD trial with Tel Aviv Sourasky Medical Center
• Filament Health and UCL launched phase 2 trials to explore psilocybin’s impact on mental health and perception
• Enveric secured second U.S. patent for non-hallucinogenic mental health therapies

Below is a weekly roundup of what happened this week in the cannabis and psychedelic sectors. In this ever-evolving landscape, we explore the major developments and groundbreaking initiatives happening among companies operating in these industries; from advancements in medical research, therapeutic applications to shifts in legal frameworks and current market trends.

Top Marijuana Companies for the Week

#1: Cresco Labs

In a decisive move to strengthen its financial position and refocus on higher-margin markets, Chicago-based cannabis multistate operator Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) announced its departure from California, the largest cannabis market in the world. The company revealed on July 21, 2025, that it is actively negotiating the sale of its California cultivation, manufacturing, and select distribution assets.

“Capital is increasingly precious in this environment, and our focus is on deploying it where it earns the strongest return,” said Cresco CEO and co-founder Charlie Bachtell. He emphasized that despite California’s market size, its “fragmented retail, price compression, and the illicit market” coupled with Cresco’s limited scale in the state make sustainable profitability unfeasible.

Cresco’s California assets include Sonoma’s Finest (formerly FloraCal California Cultivation) and Cub City, which hold various state permits for indoor cultivation, processing, and nursery operations. While these physical operations are up for sale, Cresco confirmed it will retain full ownership of its high-end FloraCal® brand, continuing its national distribution and production.

This exit aligns with a broader industry trend. Cresco now joins other major cannabis companies like Curaleaf Holdings, Inc. (TSX: CURA) (OTCQX: CURLF), which announced closure of operations in California in early 2023, and Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF), which closed its remaining California dispensary in mid-2023 due to similar structural hurdles.

The decision comes amid a downturn in California cannabis sales, which dropped from $5.1 billion in 2023 to $4.6 billion in 2024. The decline has continued into 2025, with first-quarter sales totaling $944.6 million—down from over $1 billion in the same period the previous year. The situation was further aggravated by a recent increase in the state excise tax from 15% to 19%.

Cresco stated that the divestiture is part of a broader strategic restructuring aimed at bolstering cash flow and prioritizing markets with better long-term prospects. “Exiting California allows us to reallocate capital and resources to our core markets and build out new markets where we see clear pathways for growth and shareholder value,” Bachtell explained.

#2: Cannara Biotech

Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) received preliminary approval from the Société Québécoise du Cannabis (SQDC) for five of its live resin and live rosin vape cartridge SKUs, set to hit all 107 Québec retail outlets and SQDC.ca in November 2025, marking Q1 of its fiscal year 2026.

“We are incredibly proud to announce our preliminary approval of five live resin and live rosin vape cartridges to be distributed across Québec’s 107 retail stores,” said Zohar Krivorot, President & CEO of Cannara. “I commend our R&D and Commercial teams for creating premium vape formulations that align with Québec’s specific category regulations and consumer preferences.”

He also noted that these products represent 20% of the 25 vape cartridge SKUs the SQDC intends to stock by the end of the calendar year, highlighting the company’s strong R&D efforts and alignment with Québec’s category regulations.

Additionally, Nicholas Sosiak, Cannara’s CFO, also highlighted the company’s entrance into the live rosin market: “This launch of live rosin vapes represents the culmination of months of research and development around genetic selection, process refinement, and hardware,” said Nicholas. “We are excited to bring solventless vapes to our home market of Québec and see opportunity for further expansion into other provinces.”

This announcement follows Mercanto Holdings Inc. (TSX-V: MUSH) (OTC: TGSHF) July 7 disclosure of its upcoming vape cartridge listings with the SQDC, marking a significant milestone in the province’s expanding cannabis product offerings.

The Québec vape market presents significant growth potential. The SQDC reported $741.5 million in revenue in 2024, with surveys indicating 25% of Québec consumers vaped in the past year and 28% of those vaping at least weekly. Vape cartridges currently represent about 15% of cannabis sales in provinces like Alberta, Ontario, and British Columbia, positioning Québec’s upcoming launch as a major new market opportunity.

#3: MTL Cannabis

MTL Cannabis Corp. (CSE: MTLC) (OTCQX: MTLNF) reported record-breaking financial results for the fiscal year ending March 31, 2025, with total revenue reaching $105.2 million, up 27% from the previous year. Net income soared to $6.8 million, a 179% increase, signaling what the company’s CEO, Michael Perron, called “a new era at MTL.”

“This achievement reflects the dedication of our people, the strength of our disciplined operating model, and our team’s ability to execute at a high level,” Perron said. “We’ve built a strong and scalable platform, and at the core of it all is an unwavering commitment to delivering the highest quality products and services to our patients and customers.”

The company’s product revenue, which is its primary income stream, totaled $98.7 million, accounting for the bulk of the gains. The cost of sales on that product was $37.7 million, and with $21.2 million in excise taxes, therefore the product segment delivered a gross profit of $16.1 million.

MTL’s clinic subsidiary, Canada House Clinics Inc. (CHC), added another $1.6 million in net income. CHC generated $283,965 in direct revenue and $7.5 million in referral revenue, which according to the company reflected the strength of MTL’s integrated business model across production and patient care.

The company also made strides internationally, posting $3.2 million in revenue from over 1,000 kg of shipments to Portugal, a substantial leap from $291,500 in 2024. MTL has now opened export channels into Germany, Australia, Poland, and the UK, with a clear strategic emphasis on Germany.

Operational income surged to $16 million, a 248% rise year-over-year, and EBITDA reached $21.7 million, up 135%. Adjusted EBITDA, which excludes non-operational factors, stood at $20.3 million, reflecting the company’s solid operational health.

Chairman of the Board, Richard Clement, praised the company’s performance, stating, “I am extremely proud of our team for their focus, determination, and the incredible efforts to help build the company to what it is today.”

At the end of FY2025, MTL reported $5.7 million in cash, a 320% increase from the prior year, and retained earnings rose to $5.7 million, reversing the previous year’s deficit. Inventory also nearly doubled, growing by $8.3 million, which MTL attributed to increased production and stock of finished goods.

Top Psychedelic Companies for Week

#1: GH Research

GH Research PLC (NASDAQ: GHRS) announced major progress in its regulatory discussions and clinical programs for GH001, its lead candidate for treatment-resistant depression (TRD). The company reported that only one issue remains in its ongoing engagement with the U.S. Food and Drug Administration (FDA) regarding a clinical hold on its Investigational New Drug (IND) application.

“We have now received a response from the FDA with only one hold topic remaining,” the company stated. “The FDA requested that we either provide additional data or further justification related to the previously announced respiratory tract histology findings in rats.” GH Research emphasized that it believes, based on scientific evidence, these findings are species-specific and not relevant to humans. The company added that no further concerns remain regarding dog toxicology or device-related issues.

GH Research also shared full results from its Phase 2b clinical trial and open-label extension (OLE) of GH001. The trial, targeting TRD, showed highly significant results. “The primary endpoint was met with a placebo-adjusted reduction of 15.5 points on the MADRS depression scale by Day 8,” the company reported. Furthermore, the company stated that 73% of patients remained in remission for six months, with minimal treatment visits and no required psychotherapy.

Dr. Martijn Schilte, Chief Scientific Officer, highlighted the efficiency and safety of the treatment: “The psychoactive effects of GH001 had a median duration of just 11 minutes, and 99% of patients were deemed discharge-ready within an hour of dosing. Most required only one or two sessions, indicating strong potential for scalable outpatient use”.

The safety profile was equally notable. According to GH Research, all participants in the double-blind phase continued into the OLE, and there were no treatment-related serious adverse events over six months. Additionally, no treatment-emergent suicidal behavior or intent occurred, and suicidal ideation rates decreased compared to baseline.

The company also updated the status of GH002, its intravenous version of mebufotenin HBr. In a completed Phase 1 trial in healthy volunteers, GH002 was well-tolerated with no serious adverse events and produced ultra-rapid psychoactive effects. GH Research plans to submit an IND for GH002 in Q4 2025.

Looking ahead, GH Research announced that it is preparing for a global pivotal Phase 3 program for GH001, which is expected to launch in 2026. The company said it is finalizing regulatory consultations and has begun site and team expansion. “We are ramping up with a laser focus on execution,” the company noted.

#2: Clearmind

“This milestone brings us closer to potentially delivering an innovative, non-hallucinogenic treatment for AUD,” said Dr. Adi Zuloff-Shani, CEO of Clearmind Medicine, as the company announced the successful initiation of Tel Aviv Sourasky Medical Center (TASMC) as a clinical site for its Phase I/IIa trial of CMND-100.

On Wednesday, Clearmind Medicine Inc. (NASDAQ: CMND), a clinical-stage biotech based in Vancouver, added TASMC to its multinational, multi-center clinical trial evaluating CMND-100, its proprietary oral drug candidate for Alcohol Use Disorder (AUD). The drug, which is based on the compound 5-methoxy-2-aminoindane (MEAI), is designed to reduce alcohol cravings without inducing hallucinations, offering a potentially safer, more accessible treatment option.

The Phase I/IIa trial, which is already underway at Yale School of Medicine and Johns Hopkins University in the U.S., as well as Hadassah-University Medical Center in Israel, investigates the safety, tolerability, and pharmacokinetics of CMND-100, while also monitoring early signs of efficacy, such as reduced alcohol use.

At TASMC, the study is being led by Prof. David Zeltser, Director of the Emergency Medicine Department. The addition of this site is expected to accelerate patient recruitment and enhance the robustness of the trial’s clinical network.

Dr. Zuloff-Shani emphasized the strategic value of these partnerships: “Our collaboration with leading centers like TASMC, Hadassah, Yale, and Johns Hopkins underscores the scientific community’s confidence in our approach.”

With AUD responsible for approximately 2.6 million deaths annually, Clearmind aims to bring a novel, science-backed solution to a critically underserved global health issue.

#3: Filament Health

Filament Health Corp. (OTC: FLHLF) partnered with University College London (UCL) to supply its botanical psilocybin drug candidate, PEX010, for two phase 2 clinical trials approved by the UK’s Medicines and Healthcare Products Regulatory Agency (MHRA). These studies aim to deepen scientific understanding of psilocybin’s effects on brain function, perception, and psychological wellbeing.

“These studies represent two important frontiers in psychedelic research,” said Dr. Jeremy I. Skipper, UCL Professor and Principal Investigator for both trials. “We will examine how preparation methods influence therapeutic outcomes and how psilocybin interacts with sensory systems to shape perception.”

The first trial, which is led by Rosalind McAlpine, will test a novel 21-day self-guided digital program called the Digital Intervention for Psychedelic Preparation. Participants will be randomly assigned to either a meditation-based or music-based pathway. After the program, all subjects will receive a supervised 25 mg dose of psilocybin at UCL. The trial seeks to determine how different preparatory approaches influence the quality of the psychedelic experience, psychological readiness, and changes in mental wellbeing. It will also assess user engagement and digital platform effectiveness.

The second study, Amplifying Experimentally Induced Hallucinations With “Micro” Doses of Psilocybin, led by Oris Shenyan, investigates how low doses of psilocybin impact the perception of geometric hallucinations and pareidolia; the tendency to see meaningful patterns in ambiguous stimuli, such as faces in clouds. This study will aim to build models of visual cortex dynamics to explore how psilocybin-induced neural excitation combines with external stimuli under controlled conditions.

Benjamin Lightburn, CEO and Co-Founder of Filament Health, emphasized the significance of these efforts: “Understanding how preparation style and dose affect the psychedelic experience is vital for advancing safe, effective psychedelic therapies. We are proud to support these pioneering studies at one of the world’s preeminent research institutions.”

#4: Enveric Biosciences

Enveric Biosciences, Inc. (NASDAQ: ENVB) received a second Notice of Allowance from the United States Patent and Trademark Office for its EVM401 Series, a collection of novel, non-hallucinogenic compounds designed to treat mental health disorders. The announcement marked another step in expanding the company’s intellectual property portfolio in neuroplastogenic therapeutics.

The newly approved patent, titled “Substituted N-Propylamine Fused Heterocyclic Mescaline Derivatives,” protects a unique series of methylone-inspired molecules that act as modulators of neurotransmitters without producing hallucinogenic effects. These structurally differentiated benzodioxole analogs are designed to encourage neuroplasticity, which is considered a critical mechanism in addressing psychiatric disorders like PTSD.

“With this second patent allowance for the EVM401 Series, Enveric continues to strengthen its position as a first-in-class developer of neuroplastogenic small-molecule therapeutics,” said Dr. Joseph Tucker, CEO of Enveric. “These patent-protected molecules are designed to capture the desirable neuroplasticity-promoting effects of methylone, while offering novel chemical structures that enable both strong IP protection and a potential path to repeat-dose outpatient care.”

According to Enveric, unlike methylone, an MDMA analog now in the public domain, its proprietary compounds provide a patentable and scalable foundation for mental health treatments that can potentially avoid the regulatory hurdles and safety concerns associated with hallucinogens. The company believes its EVM401 compounds could provide similar therapeutic benefits with broader clinical usability.

“The expansion of the EVM401 Series reflects Enveric’s commitment to developing a deep pipeline of next-generation, non-hallucinogenic neuroplastogens that align with the scalability and safety needs of modern mental health treatment,” Dr. Tucker added.

Enveric announced that it is planning further preclinical testing to assess safety, pharmacokinetics, and effectiveness of the new compounds, particularly in treating post-traumatic stress disorder and other neuropsychiatric conditions.