Key Takeaways; Cannabis Sector

• Cannabis technology company BYND Cannasoft, is aiming for the $10.97 billion global condom market.
• Hempacco and Sonora Paper announced a new joint venture to manufacture and market Hemp paper smoking products.

Key Takeaways; Psychedelic Sector

• atai recorded gains as the company strengthened leadership team.
• Clearmind is preparing for clinical trial to test psychedelics for treatment of alcohol addiction; Hoping to emulate Awakn’s success.

The stock market surged on Wednesday afternoon after U.S. Federal Reserve Chair, Jerome Powell, said that lower interest rate hikes could begin in December. Thanks to Jerome Powell’s comments, many stocks ended November strongly, which increased optimism for the forthcoming December holiday season.

The markets have experienced some significant drawdowns due to interest rates hikes by the Federal Reserves as they try to curb inflation, which explains why many investors were very excited to hear the Fed chair talk about the possibility of lower interest rates. He did, however, issue a warning that until concrete evidence of progress against inflation appears, monetary policy will likely remain tight.

Below is a review of the best-performing companies in the cannabis and psychedelic industries, in a week that we have seen the S&P 500 climbed 5.5% and many small caps generate solid gains.

Top Marijuana Companies for Week

#1: BYND Cannasoft

On Wednesday, shares of BYND Cannasoft Enterprises Inc. (NASDAQ: BCAN) increased by more than 44% following the company’s announcement that it plans to enter the global condom industry, which is anticipated to reach USD $10.97 billion by 2030.

In a press release, the company stated that it intended to provide consumers with a ground-breaking design for sexual pleasure as it expanded its patent for its EZ-G device to include an innovative double-faceted condom design. According to the patent application, the double-faceted condom will include two pockets filled with lubricant to increase the sexual pleasure for both partners.

According to August 2022 research done by Custom Market Insights, the global condom market is projected to increase from USD 5.31 billion in 2021 to USD 10.97 billion by 2030. BYND Cannasoft anticipates that the addition of a double-faceted condom design to their patent for the EZ-G device will put the company in a prime position to take advantage of this expanding market and boost the company’s valuation by generating more revenue.

#2: Hempacco

Hempacco Co. Inc. (NASDAQ: HPCO) and Sonora Paper Co. Inc. entered a joint venture agreement to produce, market, and distribute hemp blunt wraps, hemp tubes, and hemp smoking cones based on Sonora Paper’s intellectual property.

With hemp cigarettes, smoking paper, and other nicotine-free tobacco alternatives, Hempacco is a hemp smokables company that is disrupting the tobacco industry, a roughly $1 trillion industry.

Under the new deal, the company now has a new joint venture, Hempacco Paper Co. Inc, which is dedicated to supplying smoking paper products to the cannabis market. According to the joint venture agreement, Hempacco will own 80% of Hempacco Paper Co.’s equity interests, while Sonora Paper will own 20% of the company.

Daniel Kempton, Director of Sonora Paper, commented on the agreement, saying, “the products and techniques we have spent the past 10 years developing will reach a wider audience, and progress and development will happen much more rapidly through this partnership with Hempacco.”

In addition to this partnership, Hempacco and High Sierra Technologies Inc. (OTC: HSTI) recently entered into a joint venture for the purpose of producing, marketing, and selling hemp smokables. In accordance with their agreement, HSTI and Hempacco established a new Nevada corporation called Organipure Inc., in which each party has a 50% equity stake.

Top Psychedelic Companies for Week

#1: Clearmind

Shares of Clearmind Medicine Inc. (NASDAQ: CMND) increased by nearly 20% on Wednesday following news that the company is getting production ready for a first Phase 1 clinical trial of its psychedelic compound CMND-100. The Israeli psychedelics biotech company plans to use the compound in an upcoming clinical trial to determine whether it can be used to treat alcohol use disorder (AUD).

According to Clearmind’s CEO, preclinical studies show that the MEAI-based treatment has the potential to effectively cure a variety of addictions and binge behaviors. Additionally, the drug has shown promise in preclinical tests for treating cocaine addiction and AUD when paired with the cannabinoid-based medication CannAmide.

“Like other addictions, AUD is a chronic relapsing brain disorder characterized by an impaired ability to stop or control alcohol use,” Clearmind’s CEO Dr. Adi Zuloff-Shani said. “Alcohol abuse is the third-most-common preventable cause of death in the US, where almost 6% struggle with this condition.”

Clearmind aspires to join other companies like Awakn Life Sciences Corp. (NEO: AWKN) (OTC: AWKNF), which is a biotechnology company that generates income through the research, development, and commercialization of therapies to treat addiction with a near-term focus on alcohol use disorder.

Data from a recent US government study revealed that the number of deaths solely attributed to alcohol has increased over the past decade, necessitating the urgent need for preventative solutions. Therefore, in order to save lives, it is essential for companies like Awakn and Clearmind to continue research and development in AUD and pursue the discovery of innovative and cutting-edge treatments for alcohol addiction.

#2: atai

The clinical-stage biopharmaceutical company atai Life Sciences N.V. (NASDAQ: ATAI), which aims to revolutionize the treatment of mental health disorders, saw strong gains of almost 12% on Wednesday after the company announced the appointment of Dr. Sahil V. Kirpekar to serve as the Company’s Chief Business Officer, effective from November 29, 2022.

According to the company, this is a newly created role, and Dr. Kirpekar will be in charge of the company’s pipeline strategy as well as developing its commercial and market access functions, and overseeing its international business development initiatives, which include in- and out-licensing, M&A, and strategic investments.

Dr. Kirpekar is joining atai after working for Otsuka Pharmaceutical Co. Ltd. for more than eight years, most recently being the Head of Business Development and Co-Chair of the Global Business Development Committee. Throughout his time there, Dr. Kirpekar was in charge of closing deals with a total value of more than USD 2.7 billion and contributed to the company’s successful pipeline of assets. During his tenure at Otsuka, he also made significant contributions to the company’s digital strategy, and leading their evolving thinking in precision psychiatry, which led to the successful commercial launch of two medications, Jinarc (Tolvaptan) and Abilify Maintena (Aripiprazole). During this time, he worked closely with Atai on a few significant ventures.

“Sahil’s expertise in drug development and commercialization, digital therapeutics, and precision psychiatry neatly positions him to lead our business development and portfolio strategy efforts. His deep understanding of our strategy coupled with his experience of bringing therapies to patients will help us remain at the forefront of innovation in mental health,” said atai Co-Founder and Chief Executive Officer, Florian Brand.

Key Takeaways; Cannabis Sector

• Canopy Growth’s Q2 revenue increased sequentially by 7% to C$118 million.
• Aurora’s stock price increased significantly, despite decline in sales.
• Green Thumb beat projections and generated record Q3 revenue and adjusted EBITDA.
• Village Farms reported a growth in cannabis sales.

Key Takeaways; Psychedelic Sector

• Awakn signed its first licensing partnership agreement in New York, and its third overall, in North America.

The overall markets had a massive bounce this week after the release of lower-than-anticipated consumer price index (CPI) figures for October. As a result, many stocks had their largest one-day gain in two years. Additionally, it is earnings season for the third quarter, a crucial period for companies, especially cannabis stocks.

Below is a review of the top companies in the cannabis and psychedelic industries that dominated the news this week.

Top Marijuana Companies for Week

#1: Canopy Growth

Shares of Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) surged by almost 9% in early Wednesday trading after the company reported figures that demonstrated growing demand for its ventures. Canopy’s stock price ultimately had two additional significant increases on Thursday and Friday, with the stock closing up by more than 10% on Friday.

On Wednesday, November 9, Canopy announced its financial results for the second quarter that ended on September 30, with net revenue for the quarter being C$118 million, up 7% from the $110 million in revenue for the first quarter.

Canopy attributed this gain to BioSteel, one of its non-cannabis ventures that distributes sports and health drinks. According to the company, improved sales at Canopy’s BioSteel division, helped in offsetting the effects of greater competition in the Canadian recreational cannabis industry as well as the impact of divestitures.

“We delivered solid sequential quarterly net revenue growth and improved margins, led by another record quarter for BioSteel, the stabilization of our Canadian cannabis business, and continued actions to reduce overall costs,” said Canopy Growth’s CFO, Judy Hong.

#2: Aurora Cannabis

Another significant gainer in the cannabis industry this week was Canadian cannabis powerhouse Aurora Cannabis Inc. (NASDAQ: ACB), whose stock price ended the week up over 16%. This was despite the company reporting that net revenue for the quarter ending September 30 was CA$49.3 million, down 2% from the previous quarter and down 18% from the same quarter a year before.

In medical marijuana, where Aurora has refocused its business on, the company reported a net revenue of CA$31.6 for the quarter. This sum includes the CA$8.2 million in medical cannabis sales to nations outside of Canada. In addition, adult-use cannabis sales brought in a total of CA$13.7 million, an increase of 9% over the previous quarter.

Aurora stated that the slight decrease in revenue was negatively affected by the supply and ordering disruptions from a cyberattack at the Ontario Cannabis Store and store closures due to the labor strike in British Columbia.

Regarding expectations for the second quarter of fiscal 2023, the company said that it aims to achieve its target of profitability for adjusted EBITDA by December 31, 2022. Aurora also estimates cannabis revenue for fiscal Q2 2023 to be broadly similar to fiscal Q4 2022, after resolving the negative problems that affected their European medical and Canadian consumer business units.

#4: Village Farms

For the third quarter that concluded on September 30, Village Farms International, Inc. (NASDAQ: VFF), which develops and sells cannabis products in Canada, generated net income of CA$200,000 and positive adjusted EBITDA of CA$6.7 million. This was a notable net income in a Canadian cannabis market, where government-owned companies have received the majority of profits so far.

According to the company’s earnings release, Pure Sunfarms in British Columbia and Rose LifeScience in Quebec increased their combined market share to the top spot in Canada in October. Moreover, Village Farms also stated that Pure Sunfarms maintained its No. 1 market position for dried flower in Canada in the quarter.

“The strong performance in our Canadian cannabis business in the third quarter reflects the successful execution of our growth strategy and investments as we achieved another sales record, outstanding growth in retail sales, and our 16th consecutive quarter of positive adjusted EBITDA,” Village Farms CEO Michael DeGiglio said in a press release.

The CEO also stated that the company is progressing toward commencing shipments to Germany and Israel, as the company continue to steadily move forward on multiple opportunities in select additional markets internationally.

#3: Green Thumb

Green Thumb Industries Inc. (OTC: GTBIF), one of the largest multistate cannabis operators in the U.S., reported earnings results that exceeded analysts’ estimates.

In regard to a recent decline in profitability across the sector, the company’s record revenue shows a growing market for its cannabis products. The Chicago-based cannabis firm that owns RISE Dispensaries released its financial statistics for the third quarter that ended on September 30.

The company reported third-quarter revenue of $261.2 million, up 2.7% sequentially and up 11.8% from the prior-year period. This beat the Yahoo Finance average analyst estimates of $257.3 million. In addition, Green Thumb posted net income of $9.8 million, versus $20.2 million during the same time last year. The company said that the reduction in net income of $10.4 million was due primarily to favorable fair value adjustments to the company’s warrant liability.

“We are proud to report record revenue and adjusted operating EBITDA for the quarter against a backdrop of higher inflation and greater economic uncertainty,” chairman and CEO Ben Kovler said. “As we near the end of 2022, we are optimistic about the future of the U.S. cannabis market and proud of Green Thumb’s leadership position in the industry.”

Top Psychedelic Companies for Week

#1: Awakn

Awakn Life Sciences Corp. (NEO: AWKN) (OTC: AWKNF), announced that it had signed its third Licensing Partnership agreement in North America. The deal is with Nushama, which is a leading network of ketamine-assisted therapy clinics that is committed to resolving an escalating mental health crisis with the use of psychedelics.

The two companies will collaborate to bring Awakn’s ketamine-assisted therapy for Alcohol Use Disorder (AUD) to Nushama’s clinic in New York City. In accordance with their agreement, Awakn will give Nushama access to its proprietary therapeutics and train its practitioners; in exchange, Nushama will pay Awakn an annual fee as well as a revenue share for each treatment.

Awakn’s proprietary treatment protocol was developed and validated at the beginning of this year during a Phase II A/B clinical trial. This was the first controlled trial to evaluate ketamine-assisted therapy as a treatment for AUD, and the results showed that it was much more effective than the current standard of AUD treatments.

Commenting on the company’s licensing agreement with Nushama, Awakn CEO Anthony Tennyson said, “We are very excited to partner with Nushama and their exceptional team, who are leaders in ketamine-assisted therapy in one of the world’s largest markets with a high volume of people being treated. Expanding our U.S. reach to include such an important market as New York City, with planned expansion across the Northeast region, is a major milestone for our program…together we will deliver a more efficacious and cost-effective treatment to the growing number of people who so desperately need it.”

Key Takeaways; Cannabis Sector

• Turning Point Brands’ growth is being driven by Zig-Zag, as Q3 sales increased 23% sequentially to $52.1 million.
• Canopy and Acreage entered into new U.S. strategic arrangement, as the company accelerates entry into the U.S. cannabis market.
• Verano refinanced its $350 million credit facility.
• The Green Organic Dutchman and BZAM Cannabis entered into a binding agreement to merge.

Key Takeaways; Psychedelic Sector

• Awakn obtained funding to increase its commercial operations in the Nordic region.

The price of cannabis stocks skyrocketed this week following the publication of poll results from Monmouth University, which indicated that more than two-thirds of Americans support the legalization of the possession of small amounts of marijuana for personal use. The marijuana sector, which is still in its infancy, appears to be benefiting significantly from Americans’ positive attitude toward the legalization of marijuana. As a result, more investors are beginning to participate in the sector, as the industry’s competitive climate continues to develop.

Below is a review of the top companies in the cannabis and psychedelic industries that dominated the news this week.

Top Marijuana Companies for Week

#1: Turning Point Brands

Turning Point Brands, Inc. (NYSE: TPB) announced financial results for the third quarter ended September 30, 2022. According to Turning Point, net sales declined 1.9% to $107.8 million, but net sales for Stoker’s Product and Zig-Zag rose 10.0% and 23.3%, respectively.

According to Turning Point Brands, Zig-Zag and Stoker’s Segments maintained solid double-digit growth during the quarter, despite a difficult economic environment and consumers still feeling the effects of inflationary pressures. The company stated that Zig-Zag benefited from strong growth in the U.S. papers and Canadian businesses during the quarter as well as the successful introduction of CLIPPER lighters.

For the quarter, the gross profit for the Zig-Zag Products segment rose 18.3% to $28.0 million. Additionally, the Company estimates that $5 million in sales throughout the Zig Zag portfolio were carried over from the fourth quarter. This results clearly indicate that Turning Point Brands’ growth is being driven by Zig-Zag brand.

For the full fiscal year 2022, the company forecast Zig-Zag Products sales of $186 to $191 million.

#2: Canopy Growth

Tuesday morning saw a sharp increase in the price of Canopy Growth Corp. (TSX: WEED) (NASDAQ: CGC) shares, after the company announced a strategy to accelerate its entry into the U.S. cannabis industry and unleash the value of its full U.S. cannabis ecosystem through the creation of a new U.S.-domiciled holding company, Canopy USA, LLC. and the execution of a deliberate and highly structured process.

The Smiths Falls, Ontario-based company made an announcement on Tuesday regarding the launch of Canopy USA, which will enable the acquisitions of the American cannabis companies that Canopy had committed to buy once recreational marijuana usage became legal in the United States. These agreements include the whole acquisition of the multistate operator Acreage Holdings, Inc. (OTC: ACRHF), as well as the acquisitions of Jetty Extracts, a producer of extracts, and Wana Brands, a producer of edibles. All deals are subject to shareholder approval.

“This footprint is expected to enable Canopy USA to accelerate market expansion as key states across the country continue to allow adult-use cannabis,” CEO David Kline said on a conference call with analysts.

#3: Verano Holdings

Verano Holdings Corp. (CSE: VRNO) (OTC: VRNOF), a marijuana multistate operator, and Chicago Atlantic, a cannabis sector real estate lender, entered into a credit agreement to renew Verano Holdings Corp.’s current $350 million credit facility, extending the maturity date to October 30, 2026. The credit facility was initially signed in July 2020, and according to regulatory filings, it has been modified several times since then.

According to Verano, the decision to refinance the debt would provide the company more flexibility in how it manages its debt. According to a Thursday news release, the senior secured loan now bears a fluctuating annual interest rate, which is now at 12.75%.

“The ability to incur an additional $120 million in indebtedness secured by real estate that is currently unencumbered is expected to enable the company to lower its blended total cost of debt,” Verano said in the release.

#4: The Green Organic Dutchman

Two licensed cannabis producers are coming together in Canada’s latest cannabis industry merger. This follows the announcement that The Green Organic Dutchman Holdings Ltd. (OTC: TGODF), located in Mississauga, Ontario, and privately owned, BZAM Cannabis, with headquarters in Vancouver, had entered into a legally binding agreement to merge their businesses.

The merger is an all-stock transaction. And shareholders of BZAM will ultimately own around 49.5% of the combined business. The merger is anticipated to close on November 8, 2022.

Based on retail sales from June to August 2022, the combined company is projected to rank as the sixth-largest cannabis producer in Canada. Furthermore, the merged company forecasts to have adjusted EBITDA that is positive by the middle of 2023 and net revenue of at least $100 million for the calendar year 2023.

In calendar year 2021, TGOD and BZAM generated net revenues of $30.2 million and $32.2 million, respectively; from January to September of the current year, 2022, TGOD and BZAM have recorded net revenues of and $31.6 million and $32.7 million, respectively; this is already an increase from the prior year, despite there being more months left in the year.

Following this disclosure, shares of The Green Organic Dutchman increased by 30%, closing at about six and a half cents by the end of the trading day.

Top Psychedelic Companies for Week

#1: Awakn

Awakn Life Sciences Corp. (NEO: AWKN) (OTC: AWKNF), a biotechnology company that generates revenue through the research, development, and commercialization of therapeutics to treat addiction with a near-term focus on Alcohol Use Disorder (AUD), announced that its wholly-owned subsidiary, Awakn Oslo AS, had signed a financing agreement with TD Veen AS, a family-owned Norwegian investment company, that is also a shareholder in Awakn.

The company said it plans to expand its clinics operation in the Nordic region, following a recent management forecast that indicated a great performance and an increasing demand for Awakn’s treatments, since debuting in Norway late last year. Under its expansion plans, Awakn intends to open a second Norwegian clinic in Trondheim, making it the company’s fourth clinic overall, and relocate its current clinic in Oslo to a larger location with a big capacity for treating more patients. Awakn anticipates that both of the Norwegian clinics will be able to conduct clinical trials and perform research on-site.

Additionally, Awakn stated that, Dr. Lowan Stewart, a prominent specialist and forerunner in ketamine-assisted therapy in Norway, will continue to serve as the executive director of Awakn’s Nordic operations, and be in charge of the anticipated expansion.

Anthony Tennyson, Awakn CEO, commented on this significant announcement saying; “We are excited to be pushing into our next phase of growth in the Nordics. We have been very happy with the reaction to Awakn and our offering in Norway and the growing demand backs that sentiment up.”

Key Takeaways; Cannabis Sector

• Tilray soared more than 30%; the company relaunched its medicinal cannabis oral solution in Ireland; and reported a 10% revenue increase for the first quarter of fiscal year 2023.
• Aurora repurchased debt worth $23 million.
• Curaleaf completed purchase of Tryke for $181 million; the stock skyrocketed 33%.
• WM Technology received a consensus ‘moderate buy’ rating from analysts as the stock surged 64%.

Key Takeaways; Psychedelic Sector

• Analyst Patrick Trucchio from H.C. Wainwright & Co. reiterated a $10 buy rating for Awakn shares.

The cannabis sector had a terrific week, with stocks surging on numerous exchanges late on Thursday afternoon after President Biden unexpectedly announced that he would pardon thousands of people who had been found guilty in federal court of possessing marijuana for personal use. In addition, the President pledged to launch a review of the plant’s classification under the Controlled Substances Act, which could result in a potential change in the drug’s federal classification. At the moment, marijuana is listed as Schedule 1 substances, alongside drugs like heroin.

President Biden said in a statement, “we classify marijuana at the same level as heroin – and more serious than fentanyl. It makes no sense. Too many lives have been upended because of our failed approach to marijuana. It’s time that we right these wrongs.”

The announcement made by President Biden was seen as one of his first significant steps toward decriminalizing marijuana, thus fulfilling his campaign promise to nullify earlier federal possession convictions and start the process of potentially reducing the drug’s legal categorization. The federal decriminalization of marijuana will undoubtedly be a key development for the global legal cannabis industry.

Below is a review of the top companies in the cannabis and psychedelic industries that dominated the news this week.

Top Marijuana Companies for Week

#1: Tilray

Tilray Brands, Inc. (NASDAQ: TLRY) stock rallied more than 30% on Thursday afternoon. TLRY shares saw the first boost in bullish trading in months as a result of the U.S. President move to pardon thousands of citizens charged federally with simple possession of marijuana. This significant gain was the biggest one-day moves the marijuana stock has seen this year.

This week, the company announced the relaunch of its medicinal cannabis oral solution in Ireland, which is covered by the nation’s Medical Cannabis Access Program. Denise Faltischek, Chief Strategy Officer, and Head of International Business at Tilray Brands, said, “We are extremely proud to relaunch in Ireland with an expanded footprint. The MCAP reimbursement approval is a tremendous step in providing patients with greater access to Tilray’s high-quality medical cannabis products that address their needs. We remain dedicated to do our part to increase access for patients in need around the world.”

Additionally, the company announced its financial result for the first fiscal quarter that ended on August 31, 2022. According to the released financial figures, Tilray’s first quarter cannabis sales for the fiscal year 2023 increased 10% sequentially to $58.6 million, further confirming the company’s position as a world leader in the cannabis industry.

#2: Aurora

Aurora Cannabis Inc. (NASDAQ: ACB), a Canadian marijuana company, trimmed its debt by repurchasing convertible senior notes valued at about 31.3 million Canadian dollars ($23 million). According to a Friday morning press release, Aurora paid CA$29.8 million in cash to repurchase some of the notes, representing a 5.45% discount from the notes’ par value.

The Edmonton, Alberta-based producer said it repurchased the notes “to reduce the company’s debt and annual cash interest costs” and will save approximately CA$11.9 million in annual cash interest savings from note buybacks “made from Q3 2022 onwards.”

In June, Aurora repurchased roughly $20 million of the same senior convertible notes. The 5.5% senior convertible notes were originally issued in early 2019 and raised $345 million. According to the terms of agreement, the notes will mature in February 2024.

Aurora stock price also soared on Thursday as President Biden’s comments on marijuana sparked a little more optimism in the industry. During regular trading, Aurora’s price rose from roughly $1.20 per share to over $1.30 per share.

#3: Curaleaf

Curaleaf Holdings, Inc. (CSE: CURA) (OTC: CURLF) was one of hottest cannabis stocks on Thursday, following the pro-cannabis news from President Joe Biden. With a market valuation of more than $4 billion, CURLF stock has grown to become one of the most valuable marijuana plays. Curaleaf surged 33% on Thursday, with shares closing at $6.19 per share.

The cannabis multistate operator announced that it had completed the previously announced acquisition of Arizona-based Tryke Companies for a total of $181 million in cash and stock. As a result of the decline in the value of Curaleaf’s stock, the effective price was reduced from $286, which was the agreed amount when the deal was announced in November last year.

Curaleaf is based in Massachusetts and is listed on the Canadian Securities Exchange (CSE). Federal legalization of marijuana would mean that the company could list its shares on a U.S. stock exchange, which will eventually attract more investors. For now, unless you’ve got access to the CSE, you’ll have to buy its shares over the counter.

With vertically integrated operations in 21 states, including Massachusetts, New York, and Florida, Curaleaf is one of the biggest MSOs in the country. With federal legalization, its income will only increase. Additionally, the company has established a foothold in the German market thanks to the recent completed 55% ownership in Four 20 Pharma GmbH, one of the top medical marijuana manufacturers in the Germany. By early 2024, marijuana for adult use is anticipated to be legal in Germany.

#4: WM Technology

Although WM Technology, Inc. (NASDAQ: MAPS) is a smaller-cap stock, it attracted a lot of attention on Thursday after President Biden made pro-cannabis statements. As a result, the stock increased by nearly 64%, closing at $2.65 per share on Thursday.

It’s critical to comprehend the ownership structure of the company in order to determine who is actually in charge. In the case of WM Technology, institutional investors own a respectable stake in the company, 70.66%, making them the group with the largest share. This suggests that the stock has been examined by the analysts working for those institutions, and they like it. But they could be mistaken, just like anyone else.

Nevertheless, a number of research analysts have recently made favorable remarks about MAPS shares, indicating that they anticipate the stock will continue to increase and that the growth will hasten once marijuana is decriminalized.

Top Psychedelic Companies for Week

#1: Awakn

According to a research note by H.C. Wainwright & Co. analyst, Patrick Trucchio, Awakn Life Sciences Corp. (NEO: AWKN) (OTC: AWKNF) is one of the best-positioned companies to benefit from the strong potential of psychedelics in alcohol use disorder (AUD), a market that is estimated to be worth more than $20 billion globally.

In an investment report that was published on H.C. Wainwright & Co. BlueMatrix research library, Trucchio said, “with a potential addressable patient population in Western markets that exceeds 30 million people and with 10% or less of these patients in active treatment, the unmet medical need and opportunity for innovative approaches to treatment is very high. As such, we believe the potential for psychedelics with therapy to ameliorate AUD could represent a significant opportunity for drug sponsors, which is highly underappreciated by investors.”

In his research report, Trucchio discussed about Awakn and Cybin Inc. (NYSE: CYBN), two publicly traded biopharma firms based in Canada that have considered psychedelic therapies to treat AUD. In addition, he reiterated his buy ratings for Awakn stock, stating that the stock is worth an estimated $10 per share, which would be a robust increase from the current price.

In addition to MDMA therapy for AUD, Awakn is researching the use of the NMDA receptor antagonist, ketamine, in combination with psychotherapy to treat various addiction disorders. On the other hand, Cybin is currently examining deuterated psilocybin, or CYB003, as a treatment for severe depressive disorder.

Key Takeaways; Cannabis Sector

• High Tide’s third-quarter revenue rose 18% to C$95.4 million; in addition, the company closed a $19 million non-dilutive credit arrangement.

Key Takeaways; Psychedelic Sector

• Cybin announced key research and development milestones, beating anticipated timeframe.
• Awakn reported strong Q2 earnings. The company also announced participation in a global investment conference.

This week, the S&P 500 fell more than 4% as a result of the Federal Reserve raising interest rates by 75 basis points to combat rising inflation. The stock market is typically being pressured lower by these rising interest rates and currency volatility, and the longer the interest rates stay higher, the more the concerns of a global recession continue to intensify. Though the market is currently in a bearish state, some sectors are nevertheless doing well despite the uncertainties. Here is a weekly summary of the top companies in the cannabis and psychedelic sectors that dominated the news.

Top Marijuana Companies for Week

#1: High Tide

High Tide Inc. (NASDAQ: HITI), a prominent cannabis retailer with brick-and-mortar stores and global e-commerce assets, reported its third quarter 2022 financial results, showing a 98% growth in revenue and the eleventh consecutive quarter of positive adjusted EBITDA.

High Tide, Canada’s biggest non-franchised retailer, announced third-quarter revenue of C$95.4 million, up 18% from the second quarter and up 98% from the same period last year. In addition, the company reduced its net loss from $12 million a year earlier and from C$8 million sequentially to C$2.72 million. Additionally, earnings came in at a loss of five cents per share compared to a loss of three cents per share during the same period last year.

High Tide CEO, Raj Grover, said in a news release, “High Tide now sits within striking distance of having the highest revenue of any cannabis company reporting in Canadian dollars.”

The financial figures showed that C$80.7 million of sales was generated in Canada, while C$12.7 million and C$1.9 million of revenue came from the United States and internationally respectively. In comparison to the same period the previous year, revenues increased by 110% in Canada, 33% in the United States, and 1,486% internationally.

High Tide’s discount membership model, which saw daily store sales increase by 18% over the previous quarter and by 46% since last year, is largely responsible for the company’s success in brick-and-mortar stores.

According to Statistics Canada data, the Cabana Club loyalty program, which is the largest in Canadian cannabis retail, surpassed 750,000 Members, with over 90% of daily transactions conducted by club members. It was also reported that the 750,000 Cabana Club members, represented more than 12% of the cannabis consumers across the country, excluding Quebec.

“This membership number was our initial goal when we launched our discount club model last October, and we have now met our target in under a year,” Grover said. “We look forward to rolling out our Cabana Elite program in the near term. This program will let members access additional benefits for a small recurring fee, while the existing Cabana Club program will remain free of charge,” he said.

High Tide also announced the closing of a $19 million senior secured credit facility with connectFirst Credit Union Ltd., with an initial period of five years and at connectFirst’s floor interest rate. The company said that it intended to increase the number of stores with the money raised.

Top Psychedelic Companies for Week

#1: Awakn

Awakn Life Sciences Corp. (NEO: AWKN) (OTC: AWKNF) reported strong financial results as revenue increased along with patients, demonstrating the rising demand for addiction-focused psychedelic therapy. This revelation came after the Canadian biotechnology company released its financial report card for the second quarter ended July 31.

Through its clinics, Awakn reported revenues of C$339,872 for the second quarter, compared to zero the year before. The second quarter’s revenue increased by C$86,718, which was 34% increase compared to the first quarter.

According to the company, the delivery of ketamine-assisted therapy at the London, Bristol, and Oslo Awakn clinics was the main factor in the surge in revenue during the historically slowest time of the year for their services.

Over the course of the quarter, Awakn received approval for its Phase III clinical trial for ketamine-assisted therapy for alcohol use disorder treatment. Furthermore, the company was given C$2.5 million by the National Institute for Health and Care Research of the United Kingdom to pay for 66% of the trial’s expenses. This is the first time a government agency has funded a Phase III trial in psychedelics.

Anthony Tennyson, the CEO of Awakn, commented on the profitable results, saying “today’s results and revenue growth demonstrate the continued momentum building in our business and the successful execution of our business plan in both pillars of the business: R&D and Commercialization.”

The company reported that it had $481,830 in cash. Additionally, it announced the closing of a private placement in which 1,880,454 units were sold for $0.55 each, generating gross proceeds of $1,034,250.

Awakn stated that it expects to complete its behavioral study of ketamine in gambling addiction over the remaining months of the fiscal year. The company also anticipates that it’s going to receive regulatory and ethics permission for its Phase III clinical trial for ketamine-assisted therapy.

The company said it will also attempt to expand the commercialization of its therapeutic products in the United States and Canada, by securing more licensing partners to use its intellectual property, which includes ketamine-assisted therapy for the treatment of alcohol use disorder.

In addition to reporting strong revenue results, Awakn announced its participation in the H.C. Wainwright Global Investment Conference on September 27th at 10:00am ET.

#2: Cybin

Cybin Inc. (NEO: CYBN), a biopharmaceutical company dedicated to advancing psychedelics into therapeutics, said that it had achieved significant research and development milestones outlined in the company’s acquisition agreement with Adelia Therapeutics in 2020. The milestones were attained earlier than anticipated, which has aided Cybin in moving forward with the next stage of developing a clinical therapeutic.

The accomplishment of these milestones was essential in moving Cybin’s psychedelic programs from the lab to the clinic, which will give the company the opportunity to find potential new drug formulations and delivery systems, develop clinical protocols for psychedelic compounds, and support the clinical-stage development of CYBN’s proprietary CYB003 and CYB004 programs for major depressive disorder and anxiety disorders.

“It is extremely gratifying that we have been able to progress our ambitious R&D pipeline – from discovering new drug candidates to entering the clinic – ahead of our projected schedule,” said Cybin CEO, Doug Drysdale, in the press release.

The goal of Cybin is to develop safe and efficient treatments for patients to address a wide range of mental health conditions. To this end, the company collaborates with a network of top partners and internationally renowned scientists. Headquartered in Canada and founded in 2019, Cybin is operating in Canada, the United States, the United Kingdom, the Netherlands, and Ireland.

Key Takeaways; Cannabis Sector

• Glass House Brands closed the acquisitions two California dispensaries.
• Cansortium’s Q2 revenue rose to $22.4 million; the company forecasts 42% growth in 2022.

Key Takeaways; Psychedelic Sector

• Awakn’s technical analysis is growing stronger, according to a seasoned technical expert.
• MindMed announced positive results from a clinical trial for patients with anxiety; the company also announced participation in a Global Investment Conference.

Below is a weekly recap on the top companies that dominated the headlines in the cannabis and psychedelic sectors.

Top Marijuana Companies for Week

#1: Glass House Brands

 On September 7, 2022, Glass House Brands Inc. (NEO: GLAS-A) (OTC: GLASF), one of the fastest-growing vertically integrated cannabis companies, announced that it had completed the acquisition of two Natural Healing Center dispensaries in Grover Beach and Lemoore, California, after receiving all necessary local regulatory approvals. Furthermore, the company said that with immediate effect, the financial outcomes of the stores in Grover Beach and Lemoore will be consolidated into the financials of Glass House Brands.

Glass House announced on May 12, 2022, that it had signed agreements to buy 100% of the equity interests in three retail properties owned by Natural Healing Center; two operating retail dispensaries, Lemoore and Morro Bay, and one retail dispensary, Turlock, which was scheduled to open in Q4 2022. Following this, Glass House disclosed in their Q2 earnings release on August 11, 2022, that they had reached an agreement to purchase Natural Healing Center’s flagship Grover Beach operating dispensary for US$15.9 million, with US$8.1 million of the purchase price in assumed debt, US$7.7 million in stock, and US$0.1 million in cash net of working capital.

Grover Beach store is the gem in NHC’s collection of dispensaries, this is shown by the huge profits the dispensary delivers, for instance it brought in US$16 million in revenue in 2021. The dispensary is one of the only four total dispensaries in Grover Beach and given its high sales volume and reliable cash flow generation, it is the top taxpayer in the city.

#2: Cansortium

Cansortium Inc. (CSE: TIUMU) (OTC: CNTMF) released its financial results for the second quarter ending June 30, 2022. The company reported a 36% rise in revenue during the same period last year, from $16.5 million to $22.4 million. This revenue was higher than the average analyst estimates of $18 million from Yahoo Finance.

Cansortium’s rise in revenue came from Florida, where the company reported a 33% rise in revenue, from $14.2 million to $18.8 million. In addition, the net losses decreased from $25 million for the same period last year to $11.9 million this year.

“We generated a record quarter of results in Q2, highlighted by double-digit revenue growth, margin expansion and a material increase in adjusted EBITDA and cash flow generation,” said Cansortium CEO, Robert Beasley. “The investments we have made to add scale and improve cultivation in Florida are paying dividends. Our Sweetwater indoor cultivation facility is now fully operational and the yields in our Tampa facility have doubled from the start of 2022, all of which has led to dramatically improved productivity at the store level and a consistent increase in new patient count. In fact, revenue in Florida was up 16% from Q1 without adding a single new store during the quarter.”

Cansortium said it continues to forecast for revenue in 2022 to be in the $90-$95 million range, which would represent an increase of almost 42% from the midpoint of 2021. Additionally, Cansortium is still anticipating that adjusted EBITDA in 2022 will be in the $25–$28 million range, which would represent a roughly 35% increase from 2021.

Top Psychedelic Companies for Week

#1: Awakn

Clive Maund, a seasoned technical analyst, offered his opinion on Awakn Life Sciences Corp. (NEO: AWKN) (OTC: AWKNF) as its stock continues to strengthen. According to Clive Maund, the persistently strong upside volume from the middle of August has raised the accumulation line, strengthening the technical picture for the Awakn stock.

The expert believes that this indicates a soon-coming upside breakthrough for the stock, and his analysis is backed up by the well-developed double bottom pattern, which is visible on the 15-month chart.

According to Clive’s technical analysis, Awakn’s stock has a fairly strong technical setup and is therefore worth taking a risk on, in his opinion. Additionally, he adds that given the stock trades in respectable quantities on the US OTC market, traders should be pleased to go overweight on the stock.

Clive’s technical analysis on Awakn was published by Streetwise Reports, which is one of the leading sources of financial news and investment ideas.

Awakn Life Sciences is a biotechnology company that generates revenue by researching, developing, and commercializing therapeutics to treat addiction with a near-term focus on alcohol use disorder. The company’s primary goal is to offer effective therapies to addicts who are in great need. And in order to accomplish this, they aim to commercialize their pipeline of research and development across several channels. In addition to developing and testing a pipeline of innovative patentable pharmaceuticals with better qualities for treating addiction, Awakn is also conducting continuing clinical research programs on ketamine and MDMA-assisted therapy.

 #2: MindMed

After some much-needed positive news for investors, Mind Medicine (MindMed) Inc. (NASDAQ: MNMD), (NEO: MMED), reversed course and recovered with a great trading day on Thursday. This came after the company released some positive results from a clinical trial involving anxiety patients who received LSD as a placebo, in doses that were regulated.

In contrast to conventional LSD, which can relieve anxiety symptoms for up to four weeks with just one dose, MindMed’s patented MM-120 product seemed to provide patients with better advantages and benefits.

Commenting on this positive results, Rob Barrow, CEO and Director of MindMed, stated: “This paper further reinforces the positive preliminary evidence for LSD in patients who suffer from anxiety disorders. Acute administration of LSD produced long-lasting and notable reductions of anxiety and comorbid depression symptoms for up to 16 weeks. These results are encouraging and supportive of our proprietary MM-120 product candidate in its potential to one day offer a therapeutic benefit for patients suffering from GAD after just a single-dose administration.”

A peer-reviewed journal published the findings of this Phase 2B clinical experiment.

Given that the MindMed stock has been in free fall ever since its 1 for 15 reverse split a few weeks ago, this news was a positive sign for the company and some much-needed good news for investors.

In addition, the company announced that it will take part virtually in the H.C. Wainwright, 24th Annual Global Investment Conference, and its presentation will be accessible starting at 7:00 a.m. ET on September 12, 2022.

Key Takeaways; Cannabis Sector

• Aurora invested C$45 million to take control of a profitable agriculture grower.
• TerrAscend added to its purchase binge in Michigan by purchasing a $28.5 million cannabis dispensary.
• Statehouse’s mergers and acquisitions strategy is paying off as the company doubled second quarter revenue.

Key Takeaways; Psychedelic Sector

• Awakn announced expansion of commercial operations into Canada by signing a licensing partnership.

Below is a weekly recap on the top companies that dominated the headlines in the cannabis and psychedelic sectors.

Top Marijuana Companies for Week

#1: Aurora Cannabis

Amid a significant marijuana oversupply in Canada, Aurora Cannabis Inc. (NASDAQ: ACB) is expanding into the attractive flower and vegetable propagation industries by acquiring a controlling stake in Bevo Agtech, which is one of the biggest suppliers of flowers and vegetable seedlings in North America.

According to a press statement, the Edmonton, Alberta-based Aurora paid 45 million Canadian dollars ($35 million) in cash for 50.1% of Bevo. Furthermore, if Bevo meets specific financial targets, an additional $12 million in Aurora shares will be paid.

Carey Squires, Aurora’s head of corporate development and strategy, said Bevo’s expanding business and profitability was key to getting the deal done. The executive said Aurora plans to accelerate the plant propagation and ornamental business.

Bevo Agtech is an agricultural producer, which is based in Langley, British Columbia. The company operates 63 acres of greenhouses in B.C., where it propagates vegetable plants including tomatoes, peppers, and cucumbers as well as other plants such as flowers and grasses.

In addition, Bevo also agreed to pay up to CA$25 million for Aurora’s enormous greenhouse complex at Edmonton International Airport. Both parties agreed that the closing price will be based on Bevo successfully reaching financial milestones at the Sky facility. Additionally, Aurora said in its release that Bevo will continue to be run by the existing management team. And the company will take a controlling position on Bevo’s board.

#2: TerrAscend

TerrAscend Corp. (OTC: TRSSF) (CSE: TER), a multistate cannabis operator, is expanding its presence in Michigan by spending $28.5 million to buy a six-store chain, boosting the number of medicinal and adult-use marijuana shops it operates in the state to 17.

According to a news release, TerrAscend, which has offices in New York and Toronto, will purchase KISA Enterprises MI, LLC and KISA Holdings, LLC under a cash-and-stock transaction. Depending on the locale, TerrAscend will rebrand its stores as either Gage or Cookies companies.

TerrAscend entered the Michigan market for the first-time last year when it paid $545 million in shares to buy Gage Cannabis. According to TerrAscend Executive Chair Jason Wild, the acquisitions put the company in the driver’s seat in one of the most promising U.S. marketplaces. “Michigan is a key market for us,” he said in a statement. “This acquisition exemplifies our strategy of building depth to solidify our retail leadership while expanding profitability and scale in the state.”

Analyst estimates that Michigan’s recreational marijuana sales this year could total between $1.4 billion and $1.7 billion. This is means that with its recent acquisition spree in the state, TerrAscend is well poised to capitalize on this growing market.

#3: StateHouse Holdings

StateHouse Holdings Inc. (OTC: STHZF) (CSE: STHZ) share price plummeted in premarket trading on Friday, this was despite the company posting positive earnings results.

The West Coast vertically integrated holdings company, which is formerly known as Harborside, announced its financial results for the second quarter ending June 30, 2022, on August 25, 2022. As per the result, StateHouse totaled $34.6 million revenue in the second quarter, up 125% from $15.4 million in the same period last year.

StateHouse said that the increase reflected the acquisitions of Urbn Leaf and Loudpack, which were completed in March and April of 2022, respectively.

Commenting on the positive results, Ed Schmults, the company’s CEO said, “The second quarter was a landmark period for StateHouse, as we completed the acquisition of Loudpack to create a leading, fully integrated California cannabis company. We then launched the first phase of a major integration initiative, which was completed before the end of the quarter and resulted in significant annual cost savings.”

StateHouse stated that it aims to operate as a consumer-packaged products company with production, processing, brands, and retail stores in order to reduce its exposure to the volatile bulk cannabis market. The company also stated that in addition to continuing to reduce expenses, it also wants to become a scalable, controllable, profitable, and more predictable cannabis company.

In July, StateHouse disclosed that it had reached an agreement on a payment schedule with the Internal Revenue Service to settle and decrease federal tax liabilities, leading to a one-time non-cash gain of about $16.1 million. The company reported that it is still negotiating with the IRS on further outstanding taxes.

Top Psychedelic Company for Week

#1: Awakn

On August 18, 2022, Awakn Life Sciences Corp. (NEO: AWKN) (OTC: AWKNF) announced that it had entered into its first licensing partnership agreement in Canada with Wellbeings® Pain Management and Dependency Clinic, which is a company with roots in Ontario that focuses on multidisciplinary, evidence-based, best-practice and patient-centered care. The partnership will make it possible for Wellbeings to administer Awakn’s specialized ketamine-assisted therapy to patients who have AUD as a co-morbidity for pain.

As per the terms of the license agreement, Awakn will grant access to its proprietary therapeutics for AUD and provide training to Wellbeings practitioners, and in exchange, Wellbeings will pay Awakn an annual subscription and a revenue share for each treatment.

This was the second Licensing Partnership agreement that Awakn has signed in North America, and it came a week after the announcement of an agreement with Revitalist Lifestyle and Wellness Ltd. (OTC: RVLWF), which is one of the largest publicly listed U.S. based ketamine wellness-clinic chains.

Through these agreements, Awakn is now able to generate revenue from its proprietary therapies in several countries, including the United Kingdom, United States, Norway, and Canada.

Awakn’s introduction into the Canadian market is a game-changer because the most recent comprehensive cost assessment pegged the entire cost of alcohol-related harm to Canadians at $14.6 billion. The Canadian government also estimated that, prior to the pandemic, more over 19% of the population qualified as heavy drinkers. Therefore, by giving clinic owners access to a licensed, effective treatment option, Awakn seeks to assist those who are struggling with alcoholism.

Anthony Tennyson, Awakn CEO commented, “We are delighted to sign another Licensing Partnership agreement in quick succession. Expanding our revenue generation into Canada is another significant milestone for Awakn. Wellbeings share our vision and goal of making new more effective treatment options available to so many people who are suffering and will make another excellent partner as we start to disrupt the incumbent addiction treatment industry in North America.”

Key Takeaways; Cannabis Sector

• Cannabis REIT IIPR generated record revenue of $70.5 million in the second quarter.
• Green Thumb Q2 revenue increased 5%, to $254 million.
• Scotts Miracle-Gro share price soared, despite the company missing earnings estimates.

Key Takeaways; Psychedelic Sector

• Awakn received CA$2.5 government funding for phase III trial.

July was a great month for cannabis stocks, as more companies reported their second quarter financial results. Looking ahead to August, we expect the sector to continue the good performance as more companies are expected to announce their financial reports. Below is a weekly roundup on the top companies that dominated the headlines in the cannabis and psychedelic sectors with top deals and good earnings reports.

Top Marijuana Companies for Week

#1: Innovative Industrial Properties

Innovative Industrial Properties, Inc. (NYSE: IIPR) the first and only real estate company listed on the New York Stock Exchange, focusing on the regulated U.S. cannabis industry, announced the results for the second quarter ended June 30, 2022 on August 3, 2022.

For the three months that concluded on June 30, 2022, IIP generated total revenues of about $70.5 million, up from around $48.9 million for the same period in 2021, or a 44% gain. According to the company, the main drivers of the record increase in revenue were, acquisition and leasing of new properties, additional improvement allowances and construction funding at existing properties that resulted in base rent adjustments, and contractual rental escalations at certain properties.

As of August 6, 2022, IIP owned 110 properties spread across the various states in the USA, totaling about 8.6 million rentable square feet. The company has also invested about $2.1 billion across its portfolio, which includes the purchase price, construction funding, and improvements reimbursed to tenants. Additionally, the company has committed an additional $209.6 million to pay for draws made by its tenants.

#2: Green Thumb

Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) released its financial results for the second quarter that ended on June 30, 2022.

Revenue grew to $254.3 million from $221.9 million in the same quarter previous year, a 4.8% sequential rise and a 14.6% year-over-year gain. This easily beat the Yahoo Finance average analyst estimates for sales of $248 million.

Additionally, the company outperformed analysts’ forecasts of $0.04 in earnings. In the second quarter of 2022, net income was $24.4 million, or $0.11 per basic share and $0.10 per diluted share, as opposed to the prior year’s second quarter, when net income was $22.1 million, or $0.10 per basic and diluted share.

According to GTI, the legalization of adult-use cannabis in New Jersey and Illinois, as well as the addition of 19 retail locations compared to the second quarter of last year, were the main drivers of revenue growth. Additionally, the company’s 77 open and operating retail stores saw an increase in foot traffic.

“We are pleased with our second quarter results, especially in this challenging economic environment. Five percent revenue growth and greater than 300 basis point improvement in Adjusted EBITDA margins over the previous quarter demonstrate the results of our focus. We continue to maintain a strong balance sheet, which gives us ample flexibility to support our growth initiatives,” said Green Thumb Founder, Chairman, and Chief Executive Officer Ben Kovler.

#3: Scotts Miracle-Gro

The Scotts Miracle-Gro Company (NYSE: SMG) saw a surge in its shares during early Tuesday, August 2 trading, this was despite the gardening company reporting dismal earnings results.

The lawn care and hydroponics company reported its third-quarter results for the period ending July 2, 2022, and revenues decreased by 26% to $1.19 billion, with decreases in both major business sectors; sales for the U.S. consumer division fell 14% to $904.5 million from $1.05 billion, while sales for the hydroponic company Hawthorne dropped by 63% to $154.5 million from $421.9 million in the same period last year.

Moreover, the sales of $1.23 billion were below the average analyst expectation on Yahoo Finance.

Scotts reported a $8.01 GAAP net loss per share, which includes pre-tax restructuring and impairment costs of $724.2 million. The non-GAAP adjusted earnings per share, which is the basis of the Company’s guidance, was $1.98.

However, on a positive note, SG&A declined 30% to $135.8 million as a result of cost-cutting initiatives and lower accruals for yearly incentive compensation.

Top Psychedelic Company for Week

#1: Awakn

Awakn Life Sciences Corp. (NEO: AWKN) (OTC: AWKNF), a commercial biotechnology company that generates revenue by researching, developing, and commercializing therapeutics to treat addiction with a near-term focus on alcohol use disorder (AUD), announced in July that the National Institute for Health and Care Research (NIHR), a UK government organization, had approved grant funding for 66% of the costs of Awakn’s Phase III clinical trial, which investigates the use of ketamine-assisted therapy for the treatment of AUD. It is estimated that the trial will cost CA$3.75 million in total, with Awakn funding approximately CA$1.25 million of that.

The funding will go toward Project Kestrel, which is Awakn’s primary clinical development program that aims to produce clear Intellectual Property and marketing authorization/regulatory approval for ketamine-assisted therapy for treating AUD in the US and the UK.

The Phase III trial is anticipated to be the largest ketamine-assisted treatment clinical trial to date and the only Phase III psychedelic clinical trial to ever receive government funding. To carry out the historic trial, Awakn will collaborate with the University of Exeter (UoE) and the UK’s National Health Service (NHS).

Professor Celia Morgan, Head of Ketamine-Assisted Therapy at Awakn and University of Exeter Professor of Psychopharmacology, will be in charge of the Phase III trial.

The CEO of Awakn, Anthony Tennyson, commented: “We are pleased with today’s news for several reasons. A government showing such strong support for this new type of treatment is a global first. Secondly, working with the NHS to deliver the treatment in their existing infrastructure is a huge statement of intent, but most importantly, for so many millions of people around the world suffering from alcohol addiction, a new treatment hope has just got one big ‘step’ closer. I could not be prouder of the Awakn team and our partners for making this a reality.”

 Key Takeaways; Cannabis Sector

• Greenlane provided an update on its strategy to generate more than $30 million in improved liquidity by year-end, as a result its stock price surged over 29%.
• iAnthus announced closing of recapitalization transaction, raising $25 million additional financing.
• Sundial Growers entered into a bid agreement for Zenabis Global’s assets.

Key Takeaways; Psychedelic Sector

• Awakn’s CEO to deliver presentation at H.C. Wainwright & Co. 1st annual mental health conference.

Below is a weekly roundup on the top companies that dominated the headlines in the cannabis and psychedelic sectors with top deals and announcements.

Top Marijuana Companies for Week

#1: Greenlane

Greenlane Holdings, Inc.  (NASDAQ: GNLN) announced update on a plan to generate more than $30 million in non-dilutive liquidity. Part of the company’s strategy to achieve this goal includes getting a loan to cover its working capital needs, selling the company’s headquarters building in Boca Raton Florida, and getting rid of non-sore and lower-margin inventory.

Greenlane said in a statement that for the past three months it has been engaged in an intensive and comprehensive process to select the ideal partner for an asset-based loan that can support its working capital needs. The company said it expects to execute an agreement by the early third quarter of 2022, which is expected to result in more than $10 million of liquidity. As of the last quarter, the company has current liabilities of $77 million and total liabilities of $91 million.

In addition, Greenlane has listed its headquarters building for sale in May 2022 and that it has gotten significant interest from several buyers amidst a strong Florida commercial real estate market.

Finally, the Company said it’s working to sell through its excess & obsolete (E&O) inventory of lower-margin, non-strategic products, along with reducing the overall level of inventory on hand. In May, the Company commenced its official E&O sales program internally and has since sold more than $1 million of previously reserved E&O inventory. Management anticipates that the proceeds from these E&O sales, combined with a general sell-down of other non-core third-party brand inventory, is expected to generate more than $10 million of liquidity for the Company.

With all of these moves, Greenlane said that it anticipates that it can generate more than $30 million of liquidity on a non-dilutive basis by the end of 2022.

Investors responded positively to Greenlane’s update on its strategy to generate more than $30 million in liquidity. And as a result of this announcement, the stock price of the company surged by over 29% pre-market on Friday, Jun 24, 2022.

#2: iAnthus

iAnthus Capital Holdings, Inc. (OTCPK: ITHUF) (CSE: IAN), which owns, operates and partners with regulated cannabis operations across the United States, announced on Friday, June 24 2022, that it had completed its previously announced recapitalization transaction. According to the company, the implementation of the recapitalization transaction resulted in various changes to the corporate governance and capital structure of the Company.

Following the Recapitalization Transaction’s completion, a number of the Secured Lenders and Consenting Unsecured Debentureholders purchased 8% senior secured debentures with a maturity date of June 24, 2027, and an aggregate principal amount of $25 million. The company stated that it will utilize the money raised from the sale of the additional secured notes for working capital, general corporate expenses, and charges and fees associated with the completion of the recapitalization transaction.

#3: Sundial

Sundial Growers Inc. (NASDAQ: SNDL) announced on Monday, June 20, 2022, that it had entered into a purchase agreement, in the form of a “stalking horse bid, pursuant to which the shares of Zenabis Global Inc. and the business and assets of its direct and indirectly wholly-owned subsidiaries would be acquired by Sundial. Earlier this month, Zenabis Global, which is a subsidiary of Quebec-based licensed cannabis producer HEXO Corp. (NASDAQ: HEXO), filed for creditor protection under Canada’s Companies’ Creditors Arrangement Act (CCAA) to restructure the business.

Hexo bought Zenabis only one year ago for huge deal of 235 million Canadian dollars ($185 million) in stock. This mega deal is one of the several recent acquisitions that have ultimately pushed the Quebec business to the brink of bankruptcy.

Although the Calgary, Alberta-based Sundial did not disclose the value of the bid. One of the assets covered by the bid agreement include the 380,000 square foot indoor growing facility in Atholville, New Brunswick, which has an annual production capacity of roughly 46,000 kg of dried cannabis and 15,000 kg of extraction capacity. The facility was granted authorization to export goods internationally to Israel, Malta, the UK, and the EU after receiving EU GMP certification. Additionally, the Zenabis Group and the Malta-based ZenPharm Limited have a joint venture agreement that permits commercial bulk imports into Malta from the Atholville facility and subsequent exports of completed medicinal cannabis products to the EU and the UK.

“We are committed to creating continuity for the Zenabis Group’s operations and employees and assisting Zenabis in good faith with its restructuring,” Sundial CEO Zach George said in a statement.

Sundial’s bid; however, is subject to the approval of the Quebec Superior Court. And the bidding procedures will be sought on July 5, 2022.

Top Psychedelic Company for Week

#1: Awakn

Awakn Life Sciences Corp. (NEO: AWKN) (OTC: AWKNF), a biotechnology company, that engages in the researching, developing, and delivering of psychedelic therapeutics to treat addiction and other mental health conditions in the United Kingdom and Europe announced its participation at the H.C. Wainwright Global Investment Conference from June 27 – 28, 2022 in New York.

The Toronto based company said that the company’s CEO, Anthony Tennyson, was going to deliver a key presentation at H.C. Wainwright & Co. 1st annual mental health conference on June 27, 2022.

Awakn is a top psychedelic company that is focusing on several forms of addiction treatment. Recently, the company initiated a behavioral study that looked into using ketamine to treat gambling disorder; the study will be the first worldwide examination of this method of treating gambling disorder. Additionally, the company submitted a PCT application for the use of ketamine and ketamine-assisted psychotherapy in the treatment of behavioral addictions. This came after the successful completion of company’s behavioral addictions study, and the data provided from the study was used in the patent filing.

In addition, the company recently stated in its recent financial results that it has $2.8 million in cash, and it expects to open more clinics soon. Awakn also said that it is hoping to receive regulatory and ethics approval for Phase III clinical trial for Ketamine-Assisted Therapy for the treatment of Alcohol Use Disorder