Last Week in Cannabis #12
Hey friend — welcome back to Last Week in Cannabis. We have two weeks of news to catch up on, so this is a bigger issue than usual. A significant story affecting Canadian veterans, two major Canadian producers making moves, and the US rescheduling story took a meaningful step forward. Let's get into it.
1. CANADA — Veterans Are Paying More Out of Pocket for Medical Cannabis After a Government Rate Cut
In April, Veterans Affairs Canada quietly reduced its maximum reimbursement rate for medical cannabis from $8.50 per gram to $6.00 per gram. CBC News spoke with veterans who depend on cannabis for chronic pain and PTSD treatment, who are now concerned the rate change will force them toward cheaper, lower-quality products or require them to cover the difference themselves. Major medical cannabis suppliers have warned the government that lower reimbursement rates shift patient focus toward the cheapest available products rather than those best suited to their needs. CBC News
Mary Jane's Take: Medical cannabis for veterans is one of the most straightforward and well-documented use cases for the plant — chronic pain, PTSD, and sleep disruption are conditions where clinical evidence of benefit is strongest. Quietly cutting the reimbursement rate without a corresponding reduction in what cannabis actually costs puts real financial pressure on people who are already managing serious health challenges. It is worth paying attention to how this plays out for patients over the coming months.
2. CANADA — Canopy Growth Is Growing Again Across Every Business Line
Canopy Growth reported first quarter fiscal 2027 results on August 7th, posting consolidated net revenue of $81.2 million — up 13% from the same period last year. Cannabis revenue grew 14% year over year, led by a 22% jump in Canadian medical cannabis and 10% growth in both adult-use and international markets. The company's CEO noted it was the first quarter since he joined in January 2025 that every single business line grew simultaneously. sec
Mary Jane's Take: Canopy was one of the most high-profile examples of the cannabis industry over-expanding and burning through cash in the early legalization era. Seeing every part of the business grow at once, with losses narrowing sharply, is a meaningful turnaround signal. For the broader Canadian cannabis industry, a healthier Canopy is a good thing.
3. CANADA — Tilray Just Significantly Expanded Its Global Production Capacity
Tilray Brands announced on August 20th that it has increased its annual cannabis cultivation capacity to approximately 275 metric tonnes — up from 210 metric tonnes — driven by expanded output at its Quebec facility in Canada and its EU-GMP-certified facility in Portugal. The company is now shipping Quebec-grown cannabis directly to its facilities in Portugal and Australia to serve growing demand in international medical markets. Cannabis Business TimesTilray
Mary Jane's Take: This is a significant production commitment. Tilray is betting that international medical cannabis demand — particularly in Germany, the UK, and Australia — will continue growing, and is scaling up accordingly. The fact that a Quebec facility is being built toward EU-GMP certification is also notable: it means Canadian-grown cannabis could qualify for the European medical market directly, rather than being processed through a European facility first. Canadian producers supplying global medical markets is one of the better news stories in the domestic cannabis industry right now.
4. UNITED STATES — The Full DEA Rescheduling Hearing Transcript Is Now Public
We have been following the US cannabis rescheduling hearing since it began June 29th. This week brought a significant development: the full official 2,533-page transcript of the 11-day hearing has been released publicly, revealing in detail the DEA's effort to advocate on behalf of rescheduling marijuana as well as opponents' attempts to undermine it. Marijuana Moment
The transcript shows government lawyers making the case that "marijuana can no longer remain in Schedule I." The DEA judge who oversaw the hearing has promised to thoroughly consider all evidence presented before issuing his recommendation. Final briefs from all parties were due August 17th. The judge's recommendation to the DEA Administrator is the next step — with no announced timeline for when that will come. Marijuana Moment
Mary Jane's Take: A 2,533-page transcript is not light reading, but what matters is this: the government's own lawyers went on record arguing that cannabis no longer belongs in the most restrictive drug category in American law — the same category as heroin. That is now part of the permanent public record. Whatever the judge recommends and whatever the administrator ultimately decides, the evidentiary foundation for rescheduling has been laid in a formal legal proceeding. That is a significant moment, even if the final outcome is still months away.
That's two weeks of news — three from Canada, one from the United States. Back to Mondays from here. See you next week.
— Mary Jane
