The “marijuana mullet” is back with avengence in the cannabis industry as great top-line, headline-shocking, numbers for revenue got released with the usual massive losses on the bottom line, as usual.

Last year, an analysis of public filings by Green Market Report revealed that among the twenty largest publicly traded marijuana companies in the U.S., only one managed to turn a profit, while the rest collectively incurred a hefty $2.3 billion in losses. Despite generating over $8.7 billion in revenues altogether, these vertically integrated operators, with retail outlets, cultivation facilities, and manufacturing plants across various states, struggled to remain profitable.

These financial figures offer a glimpse into the overall performance of the cannabis sector. In 2022, a similar examination of financial filings indicated that merely two out of twenty-four public cannabis companies were profitable, with the sector as a whole facing losses exceeding $4 billion. However, it appears that losses have notably decreased year-over-year, signaling potential improvements in the industry’s financial landscape.

Top Performers and Underperformers

Green Thumb Industries (CSE: GTII) (OTCQX: GTBIF), based in Chicago, became the only cannabis firm to record net profits in 2023, with a $36.3 million profit on top of an amazing $1.1 billion in sales. This was a huge increase above its $12 million profit in 2022, demonstrating a stunning triple of yearly earnings.

In contrast, Florida’s Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) experienced the most significant setback of the year, with a whopping $527 million loss compared to $1.13 billion in sales.

However, Trulieve was not alone in its financial struggles. Curaleaf Holdings (TSX: CURA) (OTCQX: CURLF) of New York incurred losses of $281.2 million, despite leading in revenue among the twenty companies with an impressive $1.35 billion.

GTI, Trulieve, and Curaleaf were the exclusive trio to surpass the $1 billion revenue mark last year.

Other notable underperformers include:

– Ayr Wellness (CSE: AYR.A) (OTCQX: AYRWF), a Florida-based multistate operator, recorded a loss of $272 million.

– Cresco Labs (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ), headquartered in Chicago, faced losses amounting to $180 million.

– The Cannabist Co. Holdings Inc. (NEO: CBST) (OTCQX: CBSTF) (FSE: 3LP) from New York, reported losses of $174 million.

– Verano Holdings Corp. (Cboe CA: VRNO) (OTCQX: VRNOF), based in Chicago, incurred losses totaling $113 million.

The widespread financial struggles within the industry underscore the urgency behind potential regulatory changes, such as the Biden administration’s proposed shift of marijuana from Schedule I to Schedule III. Such a move could alleviate the industry’s tax burdens, potentially saving hundreds of millions annually, as estimated by various sources. However, the timeline for realizing these savings remains uncertain.

Market Upheaval

The dissimilarity between the evaluations from this year and the previous year emphasizes the volatility of the market, which is further emphasized by the removal of four firms from this year’s list.

MedMen Enterprises (CSE: MMEN) (OTCQX: MMNFF), one of the absentees, has essentially filed for bankruptcy. Due to a change of auditors, StateHouse Holdings (CSE: STHZ) (OTCQB: STHZF) and Vext Science (VEXTF) have not yet submitted their full-year financial reports to securities regulators.

The fourth omission, secondary multistate operator Red White & Bloom Brands (CSE: RWB), reported losses of $104.9 million and carried a debt of $240 million in the previous year, against revenues of $88.3 million disclosed in April.

According to Matt Karnes, Founder of GreenWave Advisors, the persistent losses stem from the exorbitant costs of operating within the federally illegal U.S. marijuana industry.

“Profitability and cash generation are formidable challenges,” Karnes remarked. “This underscores the urgency for government intervention… because financial resources are depleting rapidly. Section 280E is proving to be detrimental to all.”

Karnes acknowledged additional factors contributing to the sector’s financial downturn, including misplaced optimism surrounding the initial public offerings of many fledgling companies in recent years, and an underestimation of the competitive pricing in the illicit marijuana market.

Furthermore, political advancements at the federal level have been notably delayed compared to earlier industry expectations, resulting in failed expansion endeavors, unproductive infrastructure investments, and widespread price pressures, all culminating in diminished profit margins for the cannabis sector.

“The inability to accurately forecast when these dynamics will change, to decipher the political landscape effectively, presents significant challenges,” Karnes concluded regarding the ongoing financial setbacks. “This uncertainty remains a substantial obstacle.”

Emerging Trends and Future Outlook

Even in the face of economic uncertainty, several new developments in the cannabis sector point to possible directions for expansion and stability. The growing focus on cost control and operational efficiency is one such trend. Businesses are actively looking for creative ways to save expenses by simplifying their processes, allocating resources as efficiently as possible, and lowering overhead. These businesses want to improve their bottom line and lessen the effects of market and regulatory uncertainty by concentrating on efficiency.

The diversity of product offerings and market tactics is another noteworthy development. Companies that deal with cannabis are branching out from typical flowers and investigating new product categories including drinks, topicals, edibles, and wellness items. Targeting specialized markets and customer groups and customizing items to fit their requirements and tastes is also becoming more and more important. By lowering reliance on any one product or market segment, this diversification not only increases the variety of revenue streams but also fortifies the resilience of the market.

Looking ahead, the industry’s future prognosis is heavily reliant on regulatory developments and policy changes. The Biden administration’s prospective reclassification of marijuana from Schedule I to Schedule III may have far-reaching consequences for the business, including lower tax costs and better access to financial services. However, the timing and breadth of regulatory changes are unknown, providing hurdles for businesses navigating the changing regulatory landscape. Despite these uncertainties, ongoing innovation, strategic adaptability, and a focus on long-term sustainability will be critical in determining the cannabis industry’s resilience and development prospects in the coming years.

The other main problem the industry may never be able to overcome is, as Jeff Bezos put it so well, “your margins are my opportunity“.  Once the 280E tax breaks get worked through the system, and that cash bonanza gets dispursed, the industry will always face the unrelenting pressure of the illicit or black market.  As soon as prices start to get too high, where stores and brands start to increase margins, the illicit market will become that much more appealing for their lower prices.  If the legal industry tries to push prices too high, the black market will snag market share from more price conscious consumers.  There is a glass ceiling on how high the legal market will ever be able to raise their prices due to price pressures on the black market.

While consumers may pay for the appearance of safety through lab testing and the convience of a brick-and-mortar store, the fact remains that cannabis flower is 60% cheaper on the illicit market and edibles can be up to 93% cheaper when local and state taxes are taken into account. People will price shop when the spread between legal products and illicit products widen to unreasonable amounts.

Bottom Line

The cannabis industry’s financial struggles, as highlighted by the significant losses incurred despite substantial revenues, underscore the need for regulatory reforms and operational adaptations. While some companies have managed to thrive, many others have faced considerable setbacks, grappling with challenges ranging from regulatory constraints to market volatility. The emergence of new trends, such as cost management initiatives and product diversification, offers avenues for growth and resilience in the face of uncertainty. However, the industry’s future trajectory will largely depend on the pace and scope of regulatory changes, as well as companies’ ability to innovate and adapt to evolving market dynamics.

Margin compression and the ever-looming black market may always create a glass ceiling for cannabis product prices going forward. Push to hard on a string and the consumer will look to save up to 85% on prices by finding a new piece of twine.

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Understanding How The Entourage Effect Works In Psychedelic Mushrooms

Learn fascinating ways about how magic mushrooms work!

Most of us are already familiar with the entourage effect in marijuana. In essence, the entourage effect means that the therapeutic compounds in cannabis work more efficiently with one another, synergistically, to provide health benefits that are more powerful compared to when we take compounds on its own. While there are cannabis products that isolate THC and CBD, the science tells us that taking flower or full-spectrum form, where other cannabinoids and terpenes are present, are much more effective than one compound on its own.

The concept of the entourage effect was discovered in 1999 by none other than Raphael Mechoulam, the famous godfather of THC. Up until recently, most of what we know about the entourage effect has been limited to cannabis plants.

Now, there’s new data suggesting that the same can be observed when medicating with psychedelic mushrooms.

After all, psilocybin mushrooms – just like marijuana – also contain a complex array of other compounds, not just the star compound they are known for. While we do have some knowledge of how psilocybin works in the body thanks to clinical tests, keep in mind they do make use of synthesized psilocybin for research most of the time.

According to a recent study, psilocybin extracts may have more powerful health benefits for treating depression, OCD, anxiety, and PTSD to name a few because of the other psychoactive as well as non-psychoactive compounds in the mushroom.  “My colleagues and I are very interested in the potential of psychedelics to treat serious, treatment resistant psychiatric disorders such as depression, PTSD, OCD and even schizophrenia,” explains Bernard Lerer, study author and a psychiatry professor and director at the Hadassah BrainLabs Center for Psychedelic Research at Hebrew University.

“There are many anecdotal and clinical reports which suggest that extract of psilocybin-containing mushrooms may have unique effects that are qualitatively and quantitatively different from chemical psilocybin, and also some preclinical studies. This observation has important clinical implications and we wanted to test it empirically in a laboratory study,” they said. So for the study, the researchers compared naturally-derived mushroom extracts to chemically made psilocybin, with the intention of discovering whether the other compounds within the extract can provide benefits that are not found when consuming isolated psilocybin.

The researchers utilized male adult mice for the trials; they were divided into groups: some were given the naturally occurring mushroom extracts, while the others were given the synthetic psilocybin. Meanwhile, others were given a control solution made of saline. Additionally, the researchers analyzed the heat twitch response (HTR) assay, which is a reputable method for analyzing the impacts of psychedelics on mice. Furthermore, the researchers analyzed the mice in a molecular and biochemical level to understand any synaptic protein expressions within the brain, which are features of neuroplasticity.

The results were astonishing: they found that the brains of the mice who were given the naturally occurring mushroom extracts showed more significant neuroplasticity markers through the presence of synaptic proteins, specifically GAP43, SV2A, PSD95, and synaptophysin. Since these proteins are required for development, synaptic growth, and neuroplasticity, these findings suggest that naturally occurring mushroom extracts may indeed have a more powerful impact compared to psilocybin isolate.

“Our findings need to be confirmed in human studies but they do suggest that there may be therapeutic advantages to psilocybin-containing mushroom extract over chemically synthesized psilocybin, when both are administered at the same psilocybin dose,” explains Lerer to Psypost.

So Much We Need To Uncover In The World Of Mushrooms

When magic mushrooms are cultivated and extracted naturally, the sub metabolites of the plant remain intact, unlike the isolated versions that are synthetically produced in a laboratory since it only contains psilocybin.  There are several examples, such as the Baeocystin tryptamine, which can induce mild hallucinogenic effects. Beta-carbolines have also been discovered in psychedelic mushrooms, which can effectively help metabolize psilocin in the human body, causing a more intensive psychedelic experience.

But Why Is It Harder To Study Mushrooms Compared To Marijuana?

While the entourage effect of cannabis is already widely studied and better understood, the opposite is true when it comes to psychedelic mushrooms. There’s still so much we need to understand and study better; rodent studies are a start but translating them to humans is a whole other ball game. In addition, other experts have already acknowledged the challenges of identifying such impacts of the entourage effect.

For instance, Alan Rockefeller, a renowned mycologist who specializes in DNA sequencing as well as photography of fungi, tells Psychedelic Health: “No one really knows whether the entourage effect occurs with mushrooms.”

He goes on to elaborate the difficulties associated with studying mushrooms: “It is difficult to study because the same batch of mushrooms will have different effects in different people, and the same person on different days,” Rockefeller said. Also, it’s difficult to understand which compounds are active in a plant or mushroom, and how large the impact is for the active compounds. Researchers also need to understand the concentrations of each compound, and how different growing environments or processing can impact it.

“There are a dozen different tryptamines that can occur in mushrooms, plus a few beta-carbolines and hundreds of other molecules – so there is probably more than just psilocybin having an effect,” Rockefeller said. “Studying one compound at a time is hard enough, studying mixtures of hundreds of compounds is much more difficult. Without pure compounds, it is difficult to get repeatable results,” Rockefeller said. “It is possible that the therapeutic potential is different depending on the different compounds in the mushrooms. It’s also possible that psilocybin is the only thing that matters, and the other compounds are mostly inactive,” he said.

Conclusion

There’s so much yet that we need to know about how psychedelic mushrooms work. However, the possibilities that can be brought about by harnessing the power of the entourage effect in magic mushrooms is incredibly exciting. There is so much potential in this field that we can only truly uncover with more studies.

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People in the UK increasingly realize that CBD vaping is quite safe. Even NHS recommends CBD vaping as one of the relatively safer ways to quit smoking. Vaping is not without any harm, but it is much safer than tobacco smoking. Even more, CBD vaping is associated with some good health effects. However, now people are realizing that THC vape pens could be an even more potent way of enjoying CBD’s health benefits.

What is THC Vape?

If readers noticed that in the introduction of this text, we talked about CBD, there is a reason for that. THC vaping is different from CBD vaping, but not entirely. It has much in common with it.

The hemp plant is rich in many cannabinoids. Two major cannabinoids are THC (Tetrahydrocannabinol) and CBD (Cannabidiol). It also has many minor cannabinoids in smaller amounts, like CBG, CBC, CBN, THCV and CBDV. CBD vape pens generally have all these compounds except THC.

However, THC vape differ in the way that they also contain small amounts of THC along with CBD, minor cannabinoids, and other beneficial organic compounds like terpenes for added flavour and enhanced vaping experience.

So, why do some of the vape pens have added THC in small amounts? After all, THC is known to be addictive and has mind-altering properties. Well, the explanation is simple: the secret is in the dosage. In smaller and legally permitted dosages, THC does not cause a high; it is safe and can have many health benefits.

When small amounts of THC are added to CBD, minor cannabinoids, and terpenes, it results in much more powerful health benefits. That is why some of the CBD-based clinically approved drugs also contain THC.

THC vape pens may also have some distinct benefits not experienced with CBD vape pens. This is due to “the entourage effect.” The entourage effect is a bit different from synergy. Synergy is like two-plus-two equal to five, meaning that using some compounds together results in a more potent effect, yet safety is not compromised. However, the entourage effect means combining two compounds may result in some unique health benefits not seen when those compounds are used in isolation. So, the entourage effect is more powerful and unique than synergy.

Therefore, using THC vape pens means some unique health benefits, although these vape pens contain THC in small amounts.

THC Vape: The Dangers

It is no secret that THC is the main compound responsible for all side effects of the cannabis plant. This substance is addictive and, at higher dosages, causes euphoria, has potent mind-altering properties, and may cause hallucinations.

However, there is one important thing to understand. All these effects of THC are seen at much higher dosages than those in legally produced THC vape pens.

Legally produced/sold vape pens in the UK, like those by CBDoilking, do not contain THC more than 0.2%. This is significantly lower than cannabis indica or marijuana, which may contain 25% or even more THC. So, there is no comparison between legal THC vape pens and marijuana. At these small dosages, THC does not cause euphoria or other side effects and has no addictive properties. It only has mild stress-relief properties at these dosages.

Secondly, THC vape pens sold by CBDoilking follow other important UK guidelines and legal requirements, which means that THC vape pens cannot contain more than 1 mg of THC. Hence, it is not just about low concentration but also about low amounts, thus ensuring its safety.

Safe and Potent THC vape pens

THC vape pens are for health-conscious individuals who would like to vape on a regular basis. It is safe and may have beneficial effects like reduced anxiety, improved mood, and enhanced sleep, and it may also help reduce pain sensation.

THC vape pen is even better than your regular CBD vape pen for quitting smoking. This is because it is better at reducing tobacco cravings.

CBDoilking sells one of the strongest THC vape pens in the market (75-80% CBD plus CBG along with THC in permitted amounts), and yet all pens sold on the platform follow strict legal guidelines. All the products undergo third-party testing and are proven to contain THC, CBD, and other minor cannabinoids within legally permitted and safe limits.

Another good thing about CBDoilking is that these excellent THC vape pens come in many flavours. These flavours are not due to some artificial substances but rather due to their content of terpenes. Terpenes are plant-based aromatic compounds with antioxidant and anti-inflammatory properties.

CBDoilking offers vapes that are based on science, combining different natural compounds in the right ratio. This is both about safety and potency. So, these products are really good for those looking for something better, potent, and yet safe.

The Bottom Line

CBD vape pens have been around for some time, and their safety is well-established. They are an excellent way to quit smoking and also enjoy CBD’s health effects. However, some people are looking for something more potent. THC vape pens are good for such individuals. These contain all beneficial compounds present in the cannabis plant but in the right proportions.

THC vape pen is a new way to enjoy vaping. It is unlikely to cause any side effects as these products are made for regular use. Of course, one should not overdose on THC or CBD. It is important not to have more than a few puffs a day. Rare side effects like nausea or stomach issues might occur but are transient and short-lived. Such issues are rarely the cause of concern, except in a very small number of cases.

Thus, if you are looking for something better to reduce stress and overcome pain and anxiety, then a THC vape pen may be the right choice. Choosing something strong like the one offered by CBDoilking may be a good idea. Despite being strong, these vape pens contain THC only in legally permitted amounts and in concentrations proven to be safe and not cause euphoria.

To sum up, if you are already an experienced CBD vaper, it may be a good idea to give THC vaping a try.

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