Key Takeaways; Cannabis Sector

• Gage raises $55 million to fuel its marijuana growth in Michigan.
• Ayr Wellness to acquire two Chicago cannabis stores for at least $55 million.
• Canada’s High Tide to acquire 80% of Colorado CBD firm NuLeaf Naturals.
• Germany to legalize recreational cannabis sales, incoming coalition pledges.

Key Takeaways; Psychedelic Sector

• Numinus Receives Conditional Approval to list on the Toronto Stock Exchange.
• COMPASS Pathways granted fifth U.S. patent for crystalline psilocybin.
• Cybin Makes Grant to Establish Psychedelic Treatment Clinic.
• Awakn signs a partnership with NHS to increase access to psychedelic-assisted psychotherapy.

The marijuana boom during the pandemic boosted the U.S. cannabis companies’ revenues. Even though the recent third-quarter results for some weren’t up to the mark, revenue still continues to grow. Most of the domestic cannabis growers have established a strong market presence with wise growth strategies.

In this week’s roundup, we begin in Germany, whereby the three parties expected to form the next government in Germany have agreed to regulate the distribution and sale of recreational cannabis, according to a coalition agreement released Wednesday, November 24.

Europe’s largest economy taking a step toward marijuana legalization and regulation is being viewed as a significant achievement by social groups that have long advocated for an end to cannabis prohibition. Businesses and Companies are hoping to profit from sales of the drug under the watchful eye of government regulators.

As state and global legalization of cannabis ramps up and the prospect of federal legalization in the U.S. rises, the domestic and international players in the sector will have ample opportunities to expand.

Top Marijuana Stocks for Week

#1: Gage Growth

Gage Growth Corp. (OTC: GAEGF) is innovating and curating the highest quality cannabis experiences possible for cannabis consumers in the state of Michigan and Canada and bringing internationally renowned brands to market. Through years of progressive industry experience, the firm’s founding partners have successfully built and grown operations with federal and state licenses, including cultivation, processing, and retail locations. Gage’s portfolio includes city and state approvals for 19 “Class C” cultivation licenses, three processing licenses, and 15 provisioning centers (dispensaries).

The Michigan-based company said it raised $55 million of capital through a one-year secured loan to help finance retail acquisitions and growth in the state. The loan’s annual interest rate is set at the greatest of 7% plus the prime lending rate, or 10.25%, according to a news release by the Company on November 22, 2021. Currently, the prime rate is 3.25%, meaning the loan is at a 10.25% annual rate, payable monthly.

IN THE RELEASE, Gage CEO Fabian Monaco said that the deal, which is secured by a first lien on the company’s assets, provides the company with “maximum flexibility to execute on near-term acquisition opportunities.”

The financing comes as New York- and Toronto-based multistate operator TerrAscend is buying Gage in an all-stock deal initially valued at $545 million. Canaccord Genuity Corp. and Chicago Atlantic arranged the $55 million loan.

#2: Ayr Wellness

Ayr Wellness Inc. (OTC: AYRWF) is an expanding vertically integrated, U.S. multistate cannabis operator focused on delivering the highest quality cannabis products and customer experience throughout its footprint.

The marijuana multistate operator announced a deal to acquire Dispensary 33, which operates two retail cannabis stores in Chicago, for at least $55 million.

According to a Monday, November 22 news release, the $55 million price tag includes $12 million in cash, $3 million in seller notes, and $40 million worth of Ayr shares. An unspecified additional earn-out payment will be based on financial milestones through 2022.

The acquisition will give Ayr “a presence in two of Chicago’s most desirable neighborhoods,” Jonathan Sandelman, CEO of the Miami-based company, said in the release.

The Chicago retail deal follows another Ayr acquisition in Quincy, Illinois, earlier this year in which the company will pay roughly $30 million to buy Herbal Remedies Dispensaries. Ayr’s release said the company also has a social equity partner that has been tapped for a retail license in Bloomington, Illinois.

“We will continue to seek opportunities to expand in Illinois,” Sandelman said. The company recently raised about $150 million in capital after its acquisition spree this year.

#3: High Tide

High Tide Inc. (NASDAQ: HITI) is a leading retail-focused cannabis company with bricks-and-mortar as well as global e-commerce assets. The company is the largest Canadian retailer of recreational cannabis as measured by revenue, with 104 current locations spanning Ontario, Alberta, Manitoba, and Saskatchewan, and was featured in the third annual Report on Business Magazine’s ranking of Canada’s Top Growing Companies in 2021.

The Canadian cannabis retail, CBD, and Accessory Company announced a deal to acquire 80% of Denver-based CBD wellness product producer and distributor NuLeaf Naturals. High Tide also has an option to acquire the remaining 20% of the Colorado Company.

According to a news release, the agreement announced on Monday November 22 is worth slightly more than $31.2 million, which values NuLeaf at more than $39 million. High Tide is paying in shares and will have a three-year call option to acquire the remainder.

NuLeaf’s owners also have an 18-month put option to sell the rest of the Company to High Tide. If High Tide acquires the remainder of NuLeaf, it will pay in cash.

“With the purchase of NuLeaf, we are now further vertically integrated into our CBD business, just like we have been with regard to consumption accessories,” High Tide President and CEO Raj Grover said in a statement.

This year, Calgary, Alberta-based High Tide has acquired Milwaukee-based FabCBD, and United Kingdom-headquartered brand Blessed CBD. High Tide also owns several online cannabis accessory retailers and operates more than 100 retail marijuana stores in Canada.

Top Psychedelic Stocks for Week

#1: Numinus

Numinus Wellness Inc. (TSXV: NUMI.V) is a Canadian publicly-traded company working in the psychedelic space. The company’s operations include Numinus Bioscience, a testing and research facility; Numinus Health, a treatment and healing centre model; and Numinus R&D. The Company’s goal is to help people heal and be well through the development and delivery of innovative mental health care and access to safe, evidence-based psychedelic-assisted therapies.

The Vancouver-based Numinus received conditional approval to graduate from the TSX Venture Exchange (TSXV) to the Toronto Stock Exchange (TSX). Shares will continue to trade under the symbol NUMI.

#2: Cybin

Cybin Inc. (NYSE: CYBN) is a leading ethical biopharmaceutical company, working with a network of world-class partners and internationally-recognized scientists on a mission to create safe and effective therapeutics for patients to address a multitude of mental health issues. Headquartered in Canada and founded in 2019, Cybin is operational in the USA, U.K., and Ireland.

On Tuesday, November 23, Cybin announced that it has been awarded a grant for a psychedelic treatment clinic at Lenox Hill Hospital “to serve marginalized and underserved communities on the Upper East Side of Manhattan, New York.”

#3: COMPASS Pathways

COMPASS Pathways plc. (NASDAQ: CMPS) is a mental health care company dedicated to accelerating patient access to evidence-based innovation in mental health. The UK-based company is a sector-leading company focused on developing psilocybin-assisted psychotherapies for a number of high-burden mental health disorders.

COMPASS Pathways announced on Tuesday that it had been granted its fifth U.S. patent, which is its 10th patent overall. The new patent covers methods of treating treatment-resistant depression with crystalline psilocybin, as well as with oral dosage forms of crystalline psilocybin with an excipient. The company’s synthesized psilocybin formulation, which is used in its trials and dubbed COMP360, contains crystalline psilocybin.

#4: Awakn

Awakn Life Sciences (NEO: AWKN) (OTCQB: AWKNF) is a biotechnology company with clinical operations, developing and delivering psychedelic therapeutics (medicines and therapies) to treat addiction better. The UK-based company is working to develop and deliver treatments for addictions and substance use disorders (SUDs).

The biotechnology company signed a Memorandum of Understanding (MOU) with Devon Partnership NHS Trust and the University of Exeter to establish an evidence framework for the use of ketamine-assisted psychotherapy as an alternative treatment for Alcohol Use Disorder and treatment-resistant depression within the NHS.

Weekly Roundup; Key Takeaways:

• Curaleaf to Pay $286 Million to Acquire Western Cannabis Operator Tryke; Curaleaf Q3 Revenue Increases 2% Sequentially to $317 Million.
• Verano to Enter Connecticut Cannabis Market with $113.25 Million Acquisition of Tuatara Owned Operator.
• Awakn Won Clinic of the Year and Drug Development Company of the Year Awards at WonderlandMiami.
• Columbia Care, Ascend Wellness & MedMen amongst Top Gainers in the Cannabis Sector in Third Quarter Earnings.

It has been a busy month where many large marijuana companies have reported their third-quarter earnings, and storylines have developed from the third quarter revenue reports. A strong earnings season has powered cannabis stocks to new record highs, helping to insulate equity investors from the volatility that has rocked bond markets in recent weeks. Of the more than 50 companies in the cannabis sector that have reported their earnings results, 81 per cent of them posted higher earnings than consensus estimates.

Quarterly earnings results give investors a look under the hood of a company’s financials for three months. They serve as an essential update for investors about how the company has performed over the previous three months. They also enable investors to get a pulse on how the business is trending and how management thinks about the future.

Here, we will have a roundup on some companies that reported high earnings in the sector and companies with a high optimism of continuing to do great in the coming months.

#1: Curaleaf

Curaleaf Holdings, Inc. (OTCMKTS: CURLF) is a Canada-based international provider of consumer products in the cannabis market. The company improves lives by providing cannabis for consumption. The company and its brands, including Curaleaf and Select, provide service, product selection and accessibility across the medical and adult-use markets.

On November 8, 2021, the cannabis multi-state operator signed a definitive agreement to acquire an Arizona-based MSO in a cash and stock transaction currently valued at $286 million.

The acquisition of Tryke Cos., which does business as Reef Dispensaries, will expand Curaleaf’s presence in Arizona, Nevada and Utah. This acquisition comes after Tryke agreed in September 2019 to be acquired by Cresco Labs Inc. (OTCMKTS: CRLBF). But Cresco, a Chicago-based MSO, pulled out of the $282.5 million purchase in April 2020 because of “regulatory delays, a decline in capital markets and now COVID-19, which brought additional risk to this transaction.”

The Curaleaf-Tryke deal is expected to close in the second half of 2022, contingent on regulatory and other approvals. Under the agreement terms, Massachusetts-based Curaleaf will pay $40 million in cash at closing and $75 million in cash in equal instalments on the closing’s first, second, and third anniversaries. Curaleaf also will pay 17 million shares of stock in equal instalments on the first, second and third anniversaries.

In addition, 1 million Curaleaf shares will be paid in 2023 based on the business exceeding specific profit targets for 2022.

In other news, Curaleaf reported its financial and operating results for the third quarter ended September 30, 2021. From the earnings report, the total revenue was $317 million for the third quarter of 2021, which increased 2% from $312 million in the second quarter of 2021 and 74% from $182 million in the third quarter of 2020.

Retail revenue reached $225 million, representing 1% sequential growth and 66% year-over-year growth. Retail revenue represented 71% of total revenue. The company opened two new dispensaries during the third quarter, including one in Bordentown, New Jersey and one in Wells, Maine, reaching 109 dispensaries.

#2: Verano Holdings

Verano Holdings Corp. (OTCMKTS: VRNOF) operates as a vertically-integrated multi-state cannabis operator in the United States. The company produces and sells a suite of cannabis products under a portfolio of consumer brands, including Encore, Avexia, MÜV, and Verano. It designs, builds, and operates dispensaries under the Zen Leaf and MÜV retail brands that deliver a cannabis shopping experience in medical and adult-use markets.

The Chicago-based cannabis multi-state operator, on November 10, 2021, announced its expansion into Connecticut with multiple acquisitions, including one completed deal and two pending purchases. One of the pending deals, the acquisition of a cultivation business, is valued at more than $130 million and will give Verano a vertically integrated presence in the state.

“These acquisitions are expected to be immediately accretive and accelerate vertical integration for Verano in Connecticut, one of the most recent states to pass adult-use legislation,” Verano said in a Wednesday news release.

Connecticut legalized recreational cannabis in June, with sales expected to begin in 2022. Verano’s Connecticut deals include Willow Brook Wellness, which operates one active dispensary in Meriden; Caring Nature, which operates one operational dispensary in Waterbury; and Connecticut Pharmaceutical Solutions, which uses an active cultivation and production facility in Rocky Hill.

The Willow Brook Wellness acquisition closed on October 25, while the other deals are pending.

From the acquisition report, Verano disclosed only the price tag for Connecticut Pharmaceutical Solutions, which is: Nearly $113.3 million worth of Verano subordinate voting shares when the transaction is complete, $18.5 million in further shares “upon the first adult-use sale of cannabis in Connecticut.” An unspecified number of additional shares based on performance milestones for 2021.

Verano’s Connecticut deals come on the heels of other expansion activity this year, including acquisitions in Pennsylvania announced in April and a purchase in Nevada announced in July.

#3: Awakn

Awakn Life Sciences Corp. (NEO: AWKN) (OTCQB: AWKNF) is a biotechnology company that engages in researching, developing, and delivering psychedelic therapeutics to treat addiction other mental health conditions in the United Kingdom and Europe. The company is headquartered in Vancouver, Canada.

In recent months, Awakn has made the headlines with some great news. From the closing of the acquisition of the leading Ketamine-Assisted Psychotherapy clinic in Norway to the Worlds’s first controlled study to investigate Ketamine-Assisted Psychotherapy, there is no doubt that Awkan has been making massive progress in psychedelic research and clinical trials.

Awakn is constantly dominating the financial headlines with news of more deals and announcements; this has led to us capturing Awakn in most of our previous articles. And it seems we aren’t the only financial news platform paying close attention to the enormous progress the company has been making.

On November 9, Awakn won Clinic of the Year and Drug Development Company of the Year awards during the 2021 Wonderland awards in Miami, Florida. To celebrate this huge milestone, the company tweeted, “We are extremely honoured to win “Clinic of the Year” and “Drug Development Company of the Year” during last night’s @MicrodoseHQ  Awards at #WonderlandMiami. Thank you to everyone who voted for Awakn at this year’s awards!”

The company also posted another tweet thanking everyone who helped make Awakn a winner at this year’s Wonderland awards in Miami. Awakn tweeted, “…We’re honoured by your support as we continue our work developing revolutionary new approaches for treating substance and behavioural.”

Top Gainers in the Cannabis Sector From Third Quarter Earnings

#1: Columbia Care

Columbia Care Inc. (OTCMKTS: CCHWF) is a provider of cannabis-based health and wellness solutions. The company is engaged in cultivating, manufacturing and providing medical and adult-use cannabis products and related services with licenses in over 18 United States jurisdictions and the European Union (EU). The company operates facilities including dispensaries and cultivation and manufacturing facilities.

On November 12, 2021, the company reported financial and operating results for the third quarter ended September 30, 2021. The report recorded quarterly revenue of $132.3 million, an increase of 144%. The company had a quarterly adjusted gross profit of $64.5 million, an increase of 205%, and an adjusted EBITDA of $31.0 million, which increased 634% from the previous earnings.

#2: Ascend Wellness

Ascend Wellness Holdings, Inc. (OTCMKTS: AAWH) engages in cultivating, manufacturing, and distributing cannabis consumer packaged goods. The company’s cannabis product categories include flowers, pre-rolls, concentrates, vapes, edibles, and other cannabis-related products.

Ascend Wellness was another company in the cannabis sector that had higher earnings in its third quarterly report. Ascend’s net revenue increased 13.2% quarter-over-quarter to $94.4 million. The adjusted EBITDA increased 15.9% quarter-over-quarter to $23.5 million. The company ended the third quarter with $204.5 million of cash and cash equivalents.

#3: MedMen

MedMen Enterprises Inc. (OTCMKTS: MMNFF) is a Canada-based cannabis retailer. The company operates across the United States and stores in Los Angeles, Las Vegas and New York. It offers products under various categories, such as LuxLyte, MedMen, AlienLabs, Atlas, Bad Apple, Bloom, Breez, Caliva, BEBOE and Bic.

MedMen is also another cannabis multi-state operator that reported good earnings in their third-quarter reports. From the earnings report, the company’s first-quarter revenue from continuing operations increased 13.4% year-over-year, the total retail revenue, including New York, increased 17.6% year-over-year. During the quarter, the company announced transformative capital raise and restructuring of senior secured convertible note facility.

Key Takeaways:

• Trulieve, TerrAscend, and Verano Holdings amongst Top Cannabis Gainers for the Week.
• Awakn Findings from Phase II A/B KARE Study to Be Published In American Journal of Psychiatry; Awakn to Participate at the Wonderland: Miami Conference.
• FDA Authorizes IND for Sponsored Feasibility Study Using Kernel’s Flow Technology – Cybin Launches EMBARK Psychedelic Facilitator Training Program – DEA Grants Cybin Schedule I Manufacturing License – Cybin to Host In-Person and Virtual R&D Briefing During Wonderland: Miami.
• Enveric Biosciences to Participate in Wonderland: Miami Conference.
• Colombian cannabis firm Flora to buy California vape brand for $30 million

Top Cannabis Gainers for This Week

#1: Trulieve Cannabis

Florida-based Trulieve Cannabis Corp. (OTCMKTS: TCNNF) and its subsidiaries operate as a medical cannabis company. The company cultivates and produces products in-house and distributes its products to Trulieve branded stores (dispensaries) in Florida, California, Massachusetts, Connecticut, Pennsylvania, and West Virginia and directly to patients through home delivery.

This week, Trulieve was one of the top gainers in the cannabis sector. On Friday, October 5, 2021, the shares of Trulieve closed up 21.16% at $28.00, with an estimated market cap of $5.6 billion. The catalyst for this high percentage gain was the flurry of acquisitions that the company has made in Florida, totaling more than $500 million over the past year. These acquisitions aim to make inroads into Trulieve Cannabis’ domination of the medical marijuana market, where annual sales top $1 billion.

#2: Verano Holdings

Chicago-based marijuana multi-state operator Verano Holdings Corp. (OTCMKTS: VRNOF) operates as a vertically-integrated multi-state cannabis operator in the United States. The company produces and sells a suite of cannabis products under consumer brands, including Encore, Avexia, MÜV, and Verano.

This week Verano Holdings also did so well in the market, its shares began to spike after hours on Friday, October 5, and by the end of the day, shares of VRNOF closed up 18.43% at $11.32, with an estimated market cap of $1.5 billion. This big move in the market was triggered when the company announced the reopening of Zen Leaf St. Charles in its new location at 3691 E Main Street in St. Charles, Illinois.

The Illinois cannabis market continues to experience steady growth in its second year. Through October 2021, the state recorded over $1.1 billion in adult-use cannabis sales alone, compared to $670 million in the previous full year. Also in Illinois, Verano recently completed a renovation and expansion of its Zen Leaf Evanston storefront at 1804 Maple Avenue, which approximately doubled the dispensary’s footprint.

#3: TerrAscend

North American cannabis company TerrAscend Corp. (OTCMKTS: TRSSF) cultivates, processes, and sells medical and adult-use cannabis in Canada and the United States. It produces and distributes hemp-derived wellness products to retail locations; and manufactures cannabis-infused artisan edibles.

TerrAscend was also another top gainer in the cannabis sector this week. The shares of TerrAscend closed up 15.80% at $5.75. TerrAscend’s market cap is at an estimate of $1.2 billion. TerrAscend high percentage gain was due to the company’s announcement that it had plans to enter Michigan’s marijuana market after reaching a deal to buy local operator Gage Growth in an all-stock transaction worth $545 million. This vast deal will make investors continue to pay close attention to this New York- and Toronto-based cannabis company.

Top Cannabis Stocks to Keep a Close Eye On

#1: Flora Growth

Colombian cannabis firm Flora Growth Corp. (NASDAQ: FLGC) is a cannabis company that cultivates, processes, and supplies cannabis products to pharmacies, medical clinics, and cosmetic companies worldwide. It grows, processes and supplies medicinal-grade cannabis oil, and cannabis oil extracts, and related products.

On November 3, 2021, Flora Growth reached a definitive agreement to acquire Carlsbad, California-based Vessel Brand. Flora Growth, a small cannabis cultivator and processor in Colombia with its head office in Toronto, agreed to buy Vessel for $8 million in cash and 4,557,318 Flora shares, amounting to about $30 million in total, according to a news release.

The Colombian company said in the release that the acquisition is an “opportunity to fast-forward Flora’s penetration into the United States and Canadian cannabis markets.”

“Integration plans with the Vessel team are already well advanced, and we expect step-change improvements to the marketing and sales strategies for our core consumer brands,” Flora CEO Luis Merchan said in a statement, “as well as new brand development in support of our global growth initiatives.”

#2: Awakn Life Sciences

Awakn Life Sciences Corp. (NEO: AWKN) (OTCQB: AWKNF) announced that, positive results from the ‘Ketamine in the Reduction of Alcoholic Relapse’ (KARE) psychotherapy intervention study, which was the first controlled study in the world to investigate ketamine-assisted psychotherapy, will be published in the American Journal of Psychiatry later this year. The study was conducted by the University of Exeter (UoE) and led by Prof. Celia Morgan, Professor of Psychopharmacology at UoE and Awakn’s Head of Ketamine-assisted psychotherapy for addiction. Awakn has acquired the rights to this research. With ketamine already a licensed medicine, the phase II a/b results allow Awakn to immediately deliver the KARE treatment in its clinics in the U.K. and Europe and through its licensing partnerships outside these territories. The University of Exeter and Awakn intend to move this research forward to a pivotal phase III trial.

In addition, Professor David Nutt, Chief Research Officer of Awakn, and Dr. Ben Sessa, Chief Medical Officer of Awakn, will present together on The Future of Addiction Treatments panel at the Wonderland: Miami conference on Tuesday, November 9 at 2:00 pm E.T.

#3: Enveric Biosciences

Enveric Biosciences, Inc. (NASDAQ: ENVB) is a pharmaceutical company that develops various cannabinoid medicines for cancer care. It has a pipeline of development programs for radiodermatitis, glioblastoma multiforme, pruritus, rashes, dry skin, and chemotherapy-induced neuropathy. The company’s headquarters are in Naples, Florida.

This week Enveric announced that Dr. Joseph Tucker, Chief Executive Officer, will participate in the upcoming Wonderland: Miami conference. Dr. Tucker will be speaking on the Next-Generation Psychedelics panel on Monday, November 8 at 3:10 pm E.T.

#4: Cybin

The FDA has authorized an IND application to proceed with the Cybin Inc. (NYSE: CYBN) sponsored feasibility study using Kernel’s Flow technology to measure ketamine’s psychedelic effect on cerebral cortex hemodynamics. Kernel Flow uses pulsed light instead of continuous-wave light to increase measured brain information. In contrast with electroencephalography (“EEG”) electrodes that usually require gel on the head or functional magnetic resonance imaging (“fMRI”) studies that require a participant to lie in a scanner, Kernel Flow is easily wearable. The entire system is the size and look of a bicycle helmet and could, in the future, be more broadly used for neuroscientific or physiological studies of brain activity during psychedelic use. As part of Cybin’s sponsorship of the feasibility study, the company will retain an exclusive interest in any innovations discovered or developed through its independent analysis of the study findings.

In addition, Cybin launched the EMBARK Psychedelic Facilitator Training Program. Led by a team of esteemed faculty, the program offers psychedelic clinical trial facilitators the foundational training needed to provide skillful and ethical care to participants receiving psychedelic treatment. This fall cohort of EMBARK facilitators is a collaborative project with the University of Washington. These facilitators are preparing for the first clinical trial exploring the potential of psilocybin-assisted psychotherapy to treat healthcare workers experiencing COVID-related distress.

Additionally, the US DEA granted Cybin a Schedule I manufacturing license, a federal requirement for investigators who intend to study, produce, analyze or otherwise work with Schedule I controlled substances. The DEA license is for Cybin’s research lab in the Boston area. The license will allow the company further to become a hub for innovation and drug discovery. Previously, Cybin conducted much of its R&D work through globally licensed research organizations in the U.S., Canada, and the U.K. and certain in-house capabilities. With the DEA license, Cybin will expand its internal R&D capabilities to support innovative drug discovery and delivery involving Schedule I compounds.

Finally, Cybin will host an in-person and virtual R&D briefing releasing research findings and data on Monday, November 8, 2021, from 8:30 am to 9:30 am E.T. on the advancements to create a promising approach for patients in need of effective and safe prescription therapies in the mental health space. The in-person session will take place at Wonderland, Miami.

Key Points

• Israeli Cannabis Operator InterCure Pre-Announced Q3 Revenue at NIS 61 Million.
• Hydrofarm Signed a $58 Million Acquisition Deal.
• AFC Gamma Raised $100 Million at 5.75% for five and a half years to Fund Cannabis Industry Expansion Projects.
• International Sales Drive HEXO Q4 Revenue 71% Higher to $38.7 Million.
• Tilray Expanded Medical Cannabis Footprint in Europe.
• Awakn Life Sciences Signed LOI with MINDCURE to Distribute Ketamine Protocol for Alcohol Use Disorder into Clinics Across the United States and Canada.

Next month is when many large marijuana companies report their earnings, and there are plenty of storylines to follow as there has been a lot of major news in the sector of late. Mergers and acquisitions have picked up this year, and more states have continued to legalize marijuana.

There are many companies that investors will be watching closely in November. Here, we will have a roundup on some of the companies in the sector which have a high optimism of continuing to do great in the coming months.

#1: Hydrofarm Holdings Group

Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM) entered an agreement to acquire Illinois-based Innovative Growers Equipment (IGE) for $58 million; this was the cannabis cultivation equipment maker’s fifth acquisition in 2021.

Pennsylvania-based Hydrofarm said in a news release that it would fund the acquisition through cash, a new credit agreement, and $11.6 million in stock. The acquisition deal will close in early November.

IGE is a manufacturer of LED lighting systems, racking, and horticulture benches, a product range that complements Hydrofarm’s product line. Hydrofarm said it expects IGE to generate $48 million in sales in 2021.

Since May, Hydrofarm has acquired Greenstar Products in Canada, Aurora Innovations in Oregon, House & Garden, and Heavy 16 in California.

Additionally, Hydrofarm announced a $125 million senior secured, seven-year loan at a current annual interest rate of 6.5%. Some of the funds from that credit facility will be used to finance the acquisition of IGE. Hydrofarm also released preliminary financial results for its third quarter ended September 30. Those results include estimated net income between $13.3 million and $18.3 million, based on sales ranging from $121 million to $124 million.

#2: InterCure

InterCure Ltd. (NASDAQ: INCR) is the leading, profitable, and fastest-growing cannabis company outside North America.

Canndoc, a wholly-owned subsidiary of InterCure, is Israel’s largest licensed cannabis producer and one of the first to offer Good Manufacturing Practices (GMP) certified and pharmaceutical-grade medical cannabis products.

On Monday, October 25, 2021, InterCure announced preliminary unaudited revenue for the third quarter of 2021.

The report announced that the record revenue is expected to be an estimated CAD$24 million (NIS 61 million), three times greater than Q3 2020 and up more than 36% compared to the prior quarter sequentially. The company also reported an increase in the market share due to solid demand for Canndoc’s branded products and the relentless expansion of InterCcure’s retail footprint across the various markets.

Furthermore, the company also reported a further increase in EBITDA.

#3: Awakn Life Sciences

Awakn Life Sciences Corp (NEO: AWKN) is a biotechnology company with clinical operations; researching, developing, and delivering psychedelic medicine to treat addiction better. Awakn’s scientific advisory board includes world-leading chemists, scientists, psychiatrists, and psychologists.

Awakn Life Sciences Corp, announced the success of phase one of its new chemical entity (NCE) development program to strengthen Awakn’s pipeline for the treatment of a broad range of both substance and behavioral addictions. Novel MDMA-like NCE chemical series have been identified with drug-like properties, which was the aim of phase one of the process. Four leading compounds have been selected to be taken into in vivo efficacy analysis. The data generated will be used to support patent applications and to facilitate the development of additional lead compounds for clinical development. The Company has also announced the progression of its programme into lead optimisation working with Evotec.

This week, Mind Cure Health Inc. (CSE: MCUR), which is a leader in advanced proprietary technology and research for psychedelics, signed a non-binding letter of intent (“LOI”) with Awakn.

MINDCURE will become the distributor of Awakn’s ketamine-assisted psychotherapy for Alcohol Use Disorder (AUD)  protocol in the US and Canada. Awakn’s protocol will be distributed through iSTRYM, which is MINDCURE’s digital therapeutics platform.

In addition, Awakn announced the success of phase one of its New Chemical Entity (NCE) development program, which aims to strengthen Awakn’s pipeline to treat a broad range of both substance and behavioral addictions.

Dr. Shaun McNulty, Awakn’s CSO, commented, “The success of our NCE project has exceeded expectations, delivering robust data and clear steps forward in a short time period. The positive data we obtained will drive the identification and characterization of clinical candidates to develop the next generation of psychedelic medicines to treat addiction. Our strong development pipeline now positions Awakn at the vanguard of the psychedelic biotechnology industry.”

#4: HEXO

Canadian cannabis producer HEXO Corp. (NASDAQ: HEXO) reported its financial results for the fourth quarter and fiscal year ended July 31, 2021, on Friday, October 29, 2021. The company recorded a high adult-use marijuana revenue and a very significant growth in international sales.

Hexo’s fourth-quarter sales of CA$38.7 million were its best to date, and it was a massive increase from CA$22.6 million in the previous quarter. This was the first quarter where HEXO included revenue from Zenabis, which Hexo acquired on June 1, adding CA$6.8 million in sales over two months.

The company also announced a CA$85.5 million loss from operations, which substantially improved over the previous year’s CA$476.6 million loss.

In other categories, the company reported that the Cannabis beverage sales rose to CA$15.8 million, up from CA$2.8 million last year. The company also reported a significant increase in International revenue, whereby the income grew to CA$9.9 million, increasing from the previous year’s CA$1.3 million.

#5: AFC Gamma

AFC Gamma, Inc. (NASDAQ: AFCG) is an institutional lender leading cannabis companies with stable operations and cash-flow prospects, real-estate-security and other collateral, and locations in states with favorable supply/demand fundamentals and legislative environments.

AFC provides innovative and customized financing solutions through first-lien loans, mortgage loans, construction loans, and bridge financings. An example is the company’s role in helping fund a $120 million loan to Verano Holdings Corp. (OTCMKTS: VRNOF) in October

AFC Gamma priced an offering of $100 million aggregate senior notes to qualified institutional investors; the West Palm Beach, Florida-based company announced this key development on Friday, October 28, 2021.

AFC Gamma said it would use the proceeds from the offering to fund loans to existing borrowers and for companies operating in the cannabis industry. The notes, which have an interest rate of 5.75%, will mature on May 1, 2027.

#6: Tilray

Tilray, Inc. (NASDAQ: TLRY) reached a deal with Luxembourg’s Ministry of Health to supply the small European country with medical cannabis, the company announced on Tuesday, therefore becoming the third Canadian cannabis producer since 2019 to supply the burgeoning market.

Tilray, which has offices in Leamington, Ontario, and New York, will provide a variety of pharmaceutical-grade medical marijuana products such as extracts and dried flowers, according to the announcement.

“We believe that Tilray’s growth potential in the European Union represents a $1 billion opportunity, and today’s announcement affirms that we are turning potential into performance,” CEO Irwin Simon said in a statement.

Weekly Roundup on the Cannabis Sector: Key Takeaways

• Awakn Life Sciences Announces Closing Of Acquisition Of Leading Ketamine-Assisted Psychotherapy Clinic In Norway. The company was also selected as one of TechRound’s Top 21 Mental Health Companies for 2021.
• Tilray Reports Q1 Earnings. Revenue grew 38% from a Year Ago.
• Truss CBD USA, A Molson Coors And HEXO Corp Joint Venture in Expansion of Veryvell CBD Beverages.
• Akerna Closes $17 Million Acquisition of 365 Cannabis.
• Cannabis firms Ayr Wellness Inc., Curaleaf Holdings Inc., and The Parent Company each Announced Acquisition Deals on Monday for $80 million, $67 million, and $65.2 million, respectively.

It was another action-packed week in the cannabis sector, as more companies announced mergers and acquisitions. In this week’s roundup, we begin with Tilray, Inc. (NASDAQ: TLRY); Tilray is one of the Canabis Sector’s major players. The company has an estimated market capitalization of 4.9 billion dollars.

This week Trilay was in the headlines after the company reported its Q1 earnings. Investors, traders pay close attention to Tirlay quarterly in order to gauge the sector.

In their first fiscal quarterly report filed on Thursday, October 7, 2021, Trilay reported that their Net revenue increased by 43% to $168 million from $117 million in the prior-year quarter. The increase was driven by a 38% growth in net cannabis revenue to $70 million, net beverage alcohol revenue of $15 million following the SweetWater acquisition on November 25, 2020, and wellness revenue of $15 million from Manitoba Harvest.

The company also reported an Adjusted EBITDA of $12.7 million, a 58% growth compared to the prior-year quarter, and the tenth consecutive quarter of Adjusted positive EBITDA. If Adjusted EBITDA were normalized for Aphria’s production costs, the metric would have been closer to $17 million.

However, the company also reported a net loss of $34.6 million, slightly higher than a net loss of $21.7 million in the prior-year quarter.

Awakn Life Sciences Corp. (OTCMKTS: AWKNF)

Awakn Life Sciences Corp. is a company that is making a great name for itself in the psychedelic sector.

On Thursday, TechRound UK’s fastest-growing tech and startup news site selected Awakn as one of TechRound’s Top 21 Mental Health Companies for the year 2021. Awakn responded by saying, “…We are honored to be included on this list with so many great companies working to improve mental health around the world.”

This selection came just two days after Awakn Life Sciences had announced the finalization and the closing of the acquisition deal of a leading Ketamine-Assisted Psychotherapy clinic In Norway. In our September 21, 2021 article, we reported how Awakn had announced that they had signed a binding share exchange agreement to acquire a 100% interest in Axonklinikken AS (Axon), a leading ketamine-assisted psychotherapy clinic in Norway.

As part of the transaction, Axon was to be renamed ‘Awakn Oslo AS.’ and Axon’s majority shareholder Dr. Lowan Stewart was to be appointed as the Regional Director for the Nordics and the Managing Director. On Tuesday, October 5, 2021, Awakn Life Sciences Corp. announced the closure of this acquisition. They also announced that they would rename Axon to ‘Awakn Oslo AS.’ and appoint Axon’s majority shareholder Dr. Lowan Stewart as the Regional Director for the Nordics and the Managing Director, just as previously agreed.

The closing of this acquisition deal came a few days after Awakn announced that it had acquired the exclusive rights to the data from the phase IIa Bristol Imperial MDMA in Alcoholism Study (BIMA) from Imperial College London. As we mentioned in our September 28, 2021 article, this data will assist Awakn’s progress by enabling a better design and more efficient execution of its clinical program. Awakn will now accelerate its clinical research into a phase IIb randomized controlled trial (RCT) in the U.K. This is part of its strategy to secure marketing authorization for MDMA to treat AUD in both the U.K. and the European Union, a 400 million person territory.

HEXO Corp. (NASDAQ: HEXO)

On October 6, 2021, Truss CBD USA, a joint venture by Molson Coors Beverage Company (NYSE: TAP) and HEXO Corp., announced the expansion of Veryvell, a line of hemp-derived CBD and adaptogen beverages, to 17 States (Alaska, Arkansas, Colorado, Connecticut, Florida, Iowa, Kentucky, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Texas, Vermont, Virginia, and West Virginia) in the United States. The Veryvell line offers non-alcohol, adaptogenic, hemp-derived CBD sparkling waters and unflavored beverage drops. All Veryvell products use broad-spectrum hemp and contain <0.3% THC.

Residents living in these States can get Veryvell delivered right to their door via direct-to-consumer online purchase at the Truss CBD USA website.

Akerna Corp. (NASDAQ: KERN)

On October 4, 2021, Akerna announced that it had finally closed the $17 million acquisition deal of 365 Cannabis. The acquisition combines Akerna’s compliance gateway and feature-rich reporting with 365 Cannabis’ Microsoft ERP solution to create the cannabis sector’s most complete portfolio of tax, financials, operations, reporting, and compliance systems, crucial to scale as the industry grows and matures.

Other Cannabis Mergers & Acquisitions

On Monday, October 4^th Miami-based multistate operator Ayr Wellness, Inc. (OTCMKTS: AYRWF) announced the purchase closure of PA Natural Medicine, LLC, which operates three dispensaries in Bloomsburg, State College, and Selinsgrove, Pennsylvania. The company said that those dispensaries would be rebranded to “Ayr” by the end of the year. The transaction terms include upfront consideration of $80 million, made up of $20 million in stock, $25 million in seller notes, and $35 million in cash. An earn-out based on 2021 Adjusted EBITDA is payable in Q1 2022.

Massachusetts’ Curaleaf Holdings, Inc. (OTCMKTS: CURLF) said that it had completed the acquisition of Los Sueños Farms on Monday, which at 66 acres is the largest outdoor grow in Colorado. In a statement, Boris Jordan, executive chairman of Curaleaf, said the “deal provides Curaleaf with a high-quality, efficient, and low-cost supply of biomass to support our wholesale and retail customers in Colorado.” Overall, the newly expanded cultivation capacity will allow Curaleaf to serve better Colorado’s $2.2 billion annual cannabis market opportunity. The $67 million deal includes land, equipment, a 1,800 plant indoor grow, and two retail cannabis dispensaries.

Also, on Monday, California-based The Parent Company (TPCO Holding Corp) (NEO: GRAM) announced a $62.5 million deal to acquire 100% equity of a retail dispensary and a delivery operator, Coastal Holding Company, LLC, for $16.2 million in cash with considerations of up to $40 million in equity of The Parent Company upon the completion of milestone events, the company announced this in a press release. The deal also includes a $9 million option to acquire the remaining equity of a dispensary that Coastal currently holds a minority interest in.

Key Takeaways:

• Columbia Care began Cultivation at its newly Acquired New York Facility. The Company also Transitioned its Downtown Boston Dispensary to Adult-Use.
• Cresco Labs Announced Plans to Shift Away from Third-Party Distribution in California.
• Village Farms International Entered an Option Agreement to Acquire 80% of a Dutch Cannabis Production License Applicant (Leli Holland). In addition, they also Announced that Its Pure Sunfarms Unit Signed had Completed its First Export from Canada to Australia.
• Trulieve Announced It had Closed the Harvest Health & Recreation Acquisition. The Company also Announced Licensing Expansions with Bhang.
• Awakn Head of Ketamine-Assisted Psychotherapy for Addiction, Prof. Celia Morgan; Spoke with Benzinga about Ketamine’s Potential Importance.

This week was another week full of action in the Cannabis Sector; the movers and shakers of the industry were at it again with some key announcements and developments. We begin by looking at  Village Farms International, Inc. (NASDAQ: VFF), founded in 1989 and headquartered in Delta, Canada. The Company was formerly known as Village Farms Canada Inc. and changed its name to Village Farms International, Inc. in December 2009.

Village Farms International produces, markets, and distributes greenhouse-grown tomatoes, bell peppers, and cucumbers in North America. The Company operates through three segments: Produce Business, Energy Business, and Cannabis and Hemp Business, which produces and supplies cannabis products.

On Monday, September 27,  Village Farms International began the week with a lot of optimism by being mentioned in an Investopedia article that listed the Top Marijuana Stocks to watch on the Nasdaq in October 2021. In the article, Village Farms was listed amongst the fastest growing marijuana Stocks on the Nasdaq. And this was due to the intriguing quarterly report that the Company filed on August 9, whereby they were the top-selling licensed cannabis producer in Ontario.

After being mentioned in the Investopedia article amongst the fastest-growing marijuana stocks on the Nasdaq, Village Farms International, followed by asserting that their mention wasn’t just by luck, but they deserved it. On Tuesday, 28^th, just a day after the article, Village Farms International announced it had entered into an option agreement whereby the Company had received the irrevocable right to acquire an 80% ownership interest in Netherlands-based Leli Holland B.V. upon payment of the option of EUR50,000. The Dutch Supply Chain Experiment, which is scheduled to operate for a minimum of four years with the potential for national expansions, is expected to be the first legal recreational cannabis market in Europe

Village Farms International continued the good week by announcing on Wednesday, 29^th, that its Canadian cannabis subsidiary, Pure Sunfarms, had completed its first export shipment of cannabis. Pure Sunfarms supplied a variety of high-quality, high-THC dried flower products to Village Farms’ minority interest investee, Australia-based Altum International Pty Ltd. The shipment was the first international export shipment for Pure Sunfarms and its first shipment to Australia under a three-year supply agreement with Altum.

Village Farms closed the week with an announcement on September 30 that the Company will participate in the A.G.P./Alliance Global Partners Virtual Fall Consumer Cannabis Conference. As part of the conference, Mandesh Dosanjh, President and Chief Executive Officer of Village Farms’ wholly-owned Canadian cannabis subsidiary, Pure Sunfarms, will participate in a panel entitled Canadian Cannabis & the Role of Innovation to Drive Growth on Tuesday, October 5, 2021, at 10:00 a.m. E.T.

It was indeed a busy week for Village Farms International and its subsidiaries. The week shed some light on why Village Farm is garnering significant attention on the Cannabis Sector.

Cresco Labs Inc. (OTCMKTS: CRLBF)

Cresco Labs Inc. is a Company that has appeared regularly in our previous weekly articles. In our recent article, we had a roundup on how Cresco Labs closed a $90 million acquisition deal of three high-performing Pennsylvania dispensaries.

After last week’s acquisitions announcements, Cresco had more reports follow this week; On Thursday, September 30, Cresco announced its decision to exit agreements under which Cresco Labs served as the exclusive distributor of particular third-party cannabis branded products in California. This decision marked the latest step in Cresco Labs’ multi-year strategy to increase profitability and shift toward owned-brand distribution in the USA, the world’s largest and most competitive cannabis market.

On the same day, Cresco Labs also announced that it would report financial results for the third quarter ended September 30, 2021, on Thursday, November 11, 2021, before the market opened. The Company also provided a link for their third-quarter 2021 earnings conference call. Investors and other persons of interest can sign up to receive their event joining details.

Trulieve Cannabis Corp. (OTCMKTS: TCNNF)

Trulieve Cannabis Corp. is also another Medical Cannabis Company mentioned severally in our previous weekly roundup articles. The Company is one of the big players in the Cannabis Sector, with an estimated Market Cap of 5.1 Billion dollars.

On Thursday, September 30, 2021, Trulieve announced that they had signed an expanded licensing agreement to manufacture and distribute Bhang’s award-winning, THC-infused chocolate products in all Trulieve markets. Initially, the products will be manufactured and distributed in the Florida and Massachusetts markets. In addition, Trulieve said that Bhang’s products will be available in their dispensaries; the products would also be sold through Trulieve’s robust sales and distribution efforts.

The following day, Friday, October 1, Trulieve had some big announcement. In their statement, the Company reported that they had completed acquiring Arizona-based Harvest Health & Recreation Inc. (CNSX: HARV). The US$2.1 billion deal was first announced in May, and this mega-deal now makes Trulieve the largest and most profitable cannabis operation in the U.S., according to the Company’s announcement.

With the completed acquisition, Florida-based Trulieve now owns 150 retail dispensaries across the country and more than 3 million square feet of cultivation space. “The closing of this transaction marks a transformational milestone in our company’s history and positions Trulieve as the leading medical and adult-use cannabis operator in the U.S.,” said company CEO Kim Rivers.

As a result of the deal, Harvest shares will be delisted from the Canadian Securities Exchange at the close of trading on October 4, 2021, noted Green Report.

Columbia Care Inc. (OTCMKTS: CCHWF)

Columbia Care Inc. cultivates, manufactures, and provides cannabis-based health and wellness solutions. The Company holds licenses in 19 jurisdictions in the United States and the European Union, where it operates cultivation facilities, manufacturing facilities, and retail dispensaries. The Company was founded in 2012 and is headquartered in New York, New York.

On Wednesday, September 29, Columbia Care reported that the Company had received approval from the New York State Department of Health to commence cultivation and processing operations at its new 34-Acre facility in eastern Long Island, New York.

Columbia Care reported that the first phase of Cultivation will entail 30,000 square feet of the canopy to begin a perpetual harvest cycle in the fourth quarter. Subsequent phases will utilize more of the 740,000 square feet of functional greenhouse space, and 200,000 square feet of incremental grow capacity. The expanded square footage will support the growing medical market, with potential inclusion in the forthcoming adult-use program, with canopy caps expected. It will also eventually provide cultivation space for potential social equity business collaborations as New York’s cannabis industry evolves.

A day after Columbia Care announced the beginning of Cultivation at its new New York Facility, the Company was on the headlines again with recent developments. On September 30, Columbia Care announced that they had received approval from the Cannabis Control Commission (CCC) and the Boston Cannabis Board (BCB) to commence operations as Cannabist at 21 Milk Street in downtown Boston. The new venture will be co-located at Columbia care adult-use and medical dispensary, previously known as Patriot Care.

Awakn Life Sciences Corp. (OTCMKTS: AWKNF)

Awakn Life Sciences Corp. is another company that has been mentioned regularly in our previous articles. The company research, develop, and deliver psychedelic therapeutics to treat addiction and other mental health conditions in the United Kingdom and Europe.

In the previous article, we covered the news about Awakn announcement of acquiring the exclusive rights to the data from the phase IIa Bristol Imperial MDMA in Alcoholism Study (BIMA) from Imperial College London, which has one of the world’s leading psychedelics research centers.

This week Awakn, head of Ketamine-Assisted Psychotherapy for Addiction, Prof. Celia Morgan, spoke with Benzinga about Ketamine’s potential importance to the therapeutic processes during psychological therapy.

Dr. Celia Morgan, a professor of psychopharmacology at the University of Exeter in the U.K., said, “With [ketamine’s] unique subjective effects, where you have a kind of out-of-body experience, often people have a different perspective on their life. And that’s when you give ketamine alongside psychological therapy. That’s what enables it to work well. And it catalyzes these therapeutic processes because it gives you a completely different perspective.”

Weekly Roundup: Key Takeaways:

• Cresco Labs to Acquire 3 High-Performing Pennsylvania Dispensaries in a $90 Million Deal.
• Flora Growth is The Top Gainer in The Cannabis Sector This Week with Over 33% Gains.
• MedMen Reports 55% Year-Over-Year Quarterly Revenue Growth and Second Consecutive Quarter of Growth in Revenue and Retail Adjusted EBITDA.
• SOL Global to Repurchase Up to $30 Million in Shares between $4.05 and $4.25.
• Awakn Acquires Exclusive Rights to MDMA Research from Imperial College London.
• Curaleaf Introduces New Vape Hardware, Cliq by Select, which Features a Gravity-fed Pod.
• S. House Votes SAFE Banking Legislation into Defense Bill.
• House Committee Will Vote On Federal Marijuana Legalization Bill Next Week, Days After Banking Reform Advances.

Top Cannabis Gainer for This Week

Flora Growth Corp. (NASDAQ: FLGC)

Flora Growth Corp. (FLGC) is an internationally focused cannabis company that leverages natural, low-cost cultivation practices to supply cannabis derivatives to its diverse business divisions. The Company develops products that positively impact people’s health and wellness, from pharmaceuticals to consumer products.

Flora Growth brands include; Mambe, Mind Naturals, Almost Virgin, Flora Lab, and Stardog Loungewear. The Company was incorporated in 2019, and its headquarters are in Toronto, Canada.

This week Flora Growth Corp was the top gainer in the Cannabis Sector. On Friday, September 24, shares of Flora Growth closed up 33.72% at $6.90, with an estimated market cap of $289.9M. This massive gain in FLGC shares was contributed mainly by Flora Growth Corp. announcement that it intends to make an early leap into opening Cannabis Trade in Panama.

Just a few weeks ago, Panama’s National Assembly congress passed legislation that legalized medical marijuana. This move will undoubtedly attract many Companies in the Cannabis Sector to Panama, and Flora Growth is already making this ambitious move. This move will be beneficial to the growth of Flora Growth, and investors can already see the bigger picture; this is why Flora Growth’s share skyrocketed on Friday after this announcement.

Top Cannabis Stocks to Keep a Close Eye On

#1: MedMen Enterprises Inc. (OTCMKTS: MMNFF)

MedMen Enterprises Inc. (MMNFF) (MMEN.CN) cultivates, produces, distributes, and retails recreational and medicinal cannabis. The Company operates 25 retail stores in 6 states. MedMen Enterprises Inc. was founded in 2010, and its headquarters are in Culver City, California.

This week MedMen reported 55% year-over-year quarterly revenue growth and the second consecutive quarter of growth in revenue and retail adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).

In their Fourth Quarter Financial Report, MedMen reported that the Net revenue across MedMen’s continuing operations in California, Nevada, Illinois, Arizona, and Florida was $42.0 million for the fourth quarter, up 55.4% year-over-year. They also reported that the retail adjusted EBITDA margin rate from continuing operations was 22.0% for the fourth quarter. This is a sign of good progress from MedMen, and this is why investors should pay close attention to the Company.

#2: Cresco Labs Inc. (OTCMKTS: CRLBF)

Cresco Labs Inc. (CRLBF) (CL.CN) has appeared a couple of times in our weekly roundup articles on the cannabis sector. This week, Cresco Labs appears again because the Company continues to perform very well in the market.

On Thursday, September 23, Cresco Labs announced the execution of a definitive agreement to acquire 100% of the outstanding equity interests in Bay, LLC d/b/a Cure Pennsylvania (“Cure Penn“). The aggregate consideration amount for the Transaction is equal to Ninety Million Dollars (US$90,000,000) and will be satisfied at closing through the payment of cash and stock. The Transaction will be completed on a cash-free, debt-free basis with a mutually agreed-upon normalized target level of working capital. The closing of the Transaction is subject to, among other things, the approval and receipt of all required CSE and regulatory approvals. The Transaction is expected to close in Q4 of 2021.

This significant announcement had a substantial impact on Cresco Labs’ shares. On Friday, shares of Cresco Labs closed up 7.65% at $11.82, with an estimated market cap of $3.2B. Cresco Labs shares are expected to continue doing very well in the market, and this is why we feel that investors and traders must keep a close eye on Cresco Labs.

#3: SOL Global Investments Corp. (CNSX: SOL)

SOL Global Investments Corp. (SOLCF) (SOL.CN) is a principal investment firm focusing on the biopharmaceutical and cannabis industry in the United States. The Company is based in Toronto, Canada.

On Thursday, September 23, SOL Global announced its plans to repurchase up to $30 million in shares between $4.05 and $4.25. The announcement was a follow to the Company’s press release dated September 7, 2021.

In the announcement, SOL Global said that its board of directors had approved the launch and terms of a substantial issuer bid under which SOL Global will offer to purchase for cancellation up to $30,000,000 of its outstanding common shares (the “Common Shares”).

Subject to filing and/or obtaining the necessary exempted relief under applicable securities laws, the Offer will proceed through a “Dutch auction.” Holders of Common Shares wishing to tender to the Offer will be entitled to specify the number of Common Shares being tendered at a price of not less than $4.05 and not more than $4.25 per Common Share in increments of $0.05 per Common Share. Currently, shares of SOL Global are trading at $2.99 so the Company offering to buy shares at $4.05 means that the insiders know that the Shares are underpriced, and this is why investors should keep a close eye on SOL Global.

#4: Awakn Life Sciences Corp. (OTCMKTS: AWKNF)

Awakn Life Sciences Corp. (AWKNF) (AWKN.NE) has also been in the news with some good announcements and critical developments.

On Thursday, September 23, Awakn announced that it had acquired the exclusive rights to the data from the phase IIa Bristol Imperial MDMA in Alcoholism Study (BIMA) from Imperial College London, which has one of the world’s leading psychedelics research centers.

This data acquired will assist Awakn’s progress by enabling a better design and more efficient execution of its clinical program. Awakn will now accelerate its clinical research into a phase IIb randomized controlled trial (RCT) in the U.K. This is part of its strategy to secure marketing authorization for MDMA to treat AUD in both the U.K. and the European Union, a 400 million person territory.

The Chief Medical Officer of Awakn and the principal investigator of the BIMA study, Dr. Ben Sessa, said, “Drinking behavior outcomes from the BIMA phase IIa study that Awakn just acquired indicates that MDMA has the potential to be more effective at treating AUD, with only a 20% relapse rate within the first nine months. This compares very favorably with the current best available traditional treatments for patients’ post-detox with AUD”.

#5: Curaleaf Holdings, Inc. (OTCMKTS: CURLF)

Curaleaf Holdings, Inc. (CURLF) (CURA.CN) operates as an integrated medical and wellness cannabis operator in the United States. It operates in two segments, Cannabis Operations, and Non-Cannabis Operations. The Cannabis Operations segment engages in the production and sale of cannabis through retail and wholesale channels. The Non-Cannabis Operations segment provides professional services, including cultivation, processing, retail know-how, back-office administration, intellectual property licensing, real estate leasing services, and lending facilities to medical and adult-use cannabis licensees under management service agreements.

Wednesday, September 22, 2021, Curaleaf announced that it had introduced new vape hardware, Cliq by Select, which features a gravity-fed pod. The new vape hardware is designed to upgrade the consumer’s vaping experience significantly.

This new hardware debuted at Hall of Flowers on Wednesday, September 22, and will launch in Oregon, California, and Arizona in the following week. The hardware will then continue to roll out nationwide in states such as Massachusetts, Colorado, Florida, Maryland, Michigan, Nevada, New York, Connecticut, Maine, Utah, Ohio, and Pennsylvania. This is why we believe that Curaleaf is worth keeping a close eye on in the coming weeks.

Essential News and Reporting that Developed Throughout the Week in the Legislation and Legalization of Marijuana

A bill to federally legalize marijuana will be voted on by the House Judiciary Committee next week, the panel announced on Friday.

This development came one day after the House voted in favor of a defense spending bill that includes an amendment that would protect banks that service state-legal cannabis businesses from being penalized by federal regulators.

The bill was titled the SAFE Banking Act. The move by the U.S. House to vote SAFE Banking Legislation into Defense Bill is excellent progress as far as the Cannabis Sector is concerned because now bankers can help in financing companies in this sector without worrying about being penalized by federal regulators.

Democratic Party U.S. Representative for Colorado, Ed Perlmutter, who has relentlessly supported the bill, wrote in a tweet, “ICYMI – This week #SAFEBanking passed the House for a 5th time with overwhelming support. We cannot wait any longer to address this urgent public safety issue, and I will continue to push for its inclusion in the final NDAA.”