From what I've read, Alabama is one of the few states that still thinks weed is a bad drug. Not just that they haven't legalized, but they treat it seriously. If this wasn't a Bama athlete, a pound of weed and cash would be a serious issue because it's most likely intent to distribute. It was also a narcotics task force that did the investigation so I can't imagine that Holloway was just smoking all of the weed.
I'd be shocked, however, if anything comes of this until Bama is done in the tournament. Oats has shown zero interest in enforcing rules or even the spirit of rules. I'd be floored if Holloway even misses the first game.