Key Takeaways; Cannabis Sector

• Malta moved to become the first European country to legalize Cannabis for adult use.
• Two Cannabis REITs to Lend Acreage Holdings an Initial $100 Million at 9.75% for 4 Years.
• Innovative Industrial Buys $72.7 Million Sale-Leaseback Portfolio.
• HEXO Q1 Revenue Increased 29% sequentially to $50.2 Million as Loss Widened; The Company promised consumer focus after the loss.
• NASDAQ-Listed Waitr Holdings Considers Buying Cannabis Dispensary Software Company Cova for $90 Million.
• Curaleaf Borrows $425 Million for 5 Years at 8%.
• Glass House Taps $100 Million Debt Facility to Fund Buildout of California Cultivation Facility.

Key Takeaways; Psychedelic Sector

• Awakn Life Sciences Appoints Former EVP & CCO of Gilead Sciences, Paul Carter, to its Board of Directors; The Company also Reported Fiscal Third Quarter 2021 Financial Results

In this week’s roundup in the Cannabis and Psychedelic sectors, we begin with news from Europe where on Tuesday, December 14, Malta’s parliament passed a groundbreaking bill that decriminalized consumption of small amounts of recreational Cannabis, regulated home cultivation of marijuana, and permitted nonprofit cannabis clubs in the European Union country. The bill is anticipated to be signed by the president of the island nation, George Vella, in the coming days.

Malta will become the first European Union (EU) country to legalize small amounts of adult-use Cannabis for personal use under the new law. However, the bill does not regulate the commercial sale of recreational Cannabis to consumers, which means that such transactions will continue to take place in the shadows, out of reach of legal businesses – and out of sight of regulators. Instead, nonprofit cannabis clubs will be permitted, allowing for the cultivation and possession of Cannabis for distribution among members – as long as the organizations are limited to 500 persons and adhere to regulatory requirements. Also, under the new bill, cultivation of up to four plants per household will be authorized, as well as the storage of up to 50 grams of dried Cannabis at home for personal use.

Some European countries are taking measures to decriminalize Cannabis to varying degrees, but none have gone so far as to create major, regulated markets for the drug. Luxembourg recently reversed an earlier pledge to establish a fully controlled recreational marijuana market modeled like Canada’s. The country now intends to allow up to four plants to be grown at home for personal use. But the retail sale of Cannabis will remain prohibited. The new German administration has agreed to regulate recreational cannabis distribution and sale. But details on the planned German initiative, on the other hand, are scarce.

After the roundup on the key development in Europe, it is now time to go through some companies that hit the headlines with some important announcements and deals.

Top Marijuana Companies for Week

#1: Acreage Holdings

Real estate lenders AFC Gamma and Viridescent Realty Trust partnered up to lend $100 million to Acreage Holdings, Inc. (OTC: ACRHF), a multistate cannabis operator, with an option to lend an additional $50 million.

According to the December 16 news release, Acreage Holdings, which is based in New York, will use the senior secured credit facility “to fund expansion plans, repay existing debt, and provide additional operating capital.” The initial credit facility, which totals $100 million, includes $60 million from AFC Gamma, which is based in Florida, $10 million from an unnamed affiliate, and $30 million from Viridescent, which is based in Texas.

The credit facility has an annual interest rate of 9.75 percent, which will be paid monthly. And the credit facility will expire in January 2026. The news release reported that the loan is going to be secured by Acreage’s real estate “and other commercial security interests.” It was also reported that a further $50 million credit facility would be available once unspecified milestones are achieved.

“This transaction represents another strategic step in our efforts to drive profitability, strengthen our balance sheet and accelerate our growth in our core markets which will ultimately maximize shareholder value,” said Acreage CFO Steve Goertz in a statement.

Acreage also revealed that the terms of the $33 million loan arrangement announced in September 2020 had been changed.

Shares of Acreage Holdings trade on the Canadian Securities Exchange and on U.S. over-the-counter markets. The Company was formerly known as High Street Capital Partners. Acreage is a principal investment firm specializing in the cannabis industry. The Company was founded in 2014 and is based in New York, New York.

AFC Gamma trades on the NASDAQ stock exchange.

#2: Innovative Industrial

On Tuesday, December 14, 2021, Innovative Industrial Properties, Inc. (NYSE: IIPR), a real estate investment trust, said it had paid $72.7 million for a portfolio of 27 cannabis properties in Colorado, North Dakota, and Pennsylvania, excluding transaction fees. As a result, the San Diego-based REIT now controls 103 properties in 19 states totaling 7.7 million square feet of rentable space.

According to the Tuesday news release, Innovative Industrial reported that all of the assets in the recent transaction are leased for use as state-legal dispensaries, processing, and/or cultivation facilities. Innovative Industrial said that the portfolio comprises 24 locations in Colorado, two in North Dakota, and one in Pennsylvania.

The Company further reported that the portfolios are distributed under the following marijuana operators: 16 are leased to a subsidiary of New York-based multistate operator Columbia Care, three to subsidiaries of Massachusetts-based Curaleaf Holdings, four to subsidiaries of Denver-headquartered Schwazze, three to subsidiaries of Colorado-headquartered LivWell Holdings, and one to Colorado-based Kaya Cannabis.

IIPR CEO Paul Smithers said that the transactions represent an expansion of the Company’s long-term real estate partnerships with Columbia Care, Curaleaf, and LivWell and new relationships with Schwazze and Kaya.

Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on acquiring, owning, and managing specialized properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities. The Company trades on the New York Stock Exchange under the ticker symbol IIPR.

#3: HEXO

After losing 117 million Canadian dollars ($91 million) in the first quarter of fiscal 2022, the struggling Quebec-based cannabis producer HEXO Corp. (NASDAQ: HEXO) is switching up its board and also promised a renewed focus on its customers. Since 2016, the Company has now lost a total of CA$885.8 million.

HEXO claimed in the news release that its acquisitions of rival cannabis producers Redecan and 48North added CA$14.7 million in sales in the quarter ending October 31, 2021. The purchases of Redecan, 48North, and Zenabis, which all closed this year, came with transaction expenses of CA$24.4 million, according to the company. In addition, impairment charges for duplicate assets and investments were CA$50.7 million, including CA$4 million in executive reorganization costs.

Despite the headwinds, CEO Scott Cooper told analysts he expects Hexo to reach profitability in the near future. “The days of unprofitable cannabis companies are numbered,” Cooper said on a call with analysts. “We believe we will get to EBITDA-positive in this current quarter.”

HEXO’s August-October quarter Adjusted EBITDA, which is a measure of profitability, was minus-CA$11.6 million. Hexo reiterated its expectation of being cash-flow positive within the next four quarters. “We will put the customer and consumer at the center of everything we do,” Cooper said.

Hexo’s sales by category in the quarter, compared to the previous quarter, were: adult-use Cannabis: CA$35.9 million (+47%), Beverages: CA$3.2 million (-40%), Canada medical: CA$668,000 (+210%), Wholesale: CA$4.1 million (+116%), and International: CA$6 million (-11%).

HEXO also announced some significant changes to its C-suite approximately two months after longtime CEO Sébastien St. Louis stepped down in October. The Company is again changing chief financial officers, which will be the fifth time a fresh executive will fill the CFO role in three years.

The current CFO, Trent MacDonald, is stepping down, effective March 11, 2022. MacDonald will continue in his role while the Company completes its search for a new CFO, per Hexo’s announcement. Also shuffled out was board Chair Michael Munzar. Hexo appointed John Bell as Munzar’s replacement, effective immediately. Bell served on Canopy Growth’s board from 2014 to 2020. Hexo also added Jackie Fletcher, vice president of science and technology, to the executive team.

The executive shake-up is part of Hexo’s “transformative plan,” which was announced concurrently with the first-quarter loss. According to the release, the plan involves solidifying its position as the No. 1 cannabis producer in Canada by market share, “with the goal of becoming the first amongst its peers to be cash flow positive from operations.”

Hexo expects to generate CA$37.5 million in incremental cash flow this fiscal year and CA$135 million in 2023 via cost reductions and revenue growth.

HEXO Corp., through its subsidiaries, produces, markets, and sells Cannabis in Canada. The Company offers its adult-use and medical products under the HEXO brand name. It provides cannabis beverages under the Little Victory, House of Terpenes, Mollo, Veryvell, and XMG brands; and cannabis products under UP Cannabis, Original Stash, and Up brand names. The Company’s shares trade as HEXO on the Nasdaq and Toronto Stock Exchange.

#4: Waitr Holdings

Waitr Holdings Inc. (NASDAQ: WTRH), an online food ordering and delivery service has expressed interest in buying cannabis point-of-sale vendor Cova Software for $90 million in cash and stock.

Waitr, which is based in Louisiana and traded on the NASDAQ under the symbol WTRH, announced on Friday, December 17, 2021, that it had signed a nonbinding letter of intent (LOI) to purchase Retail Innovation Labs, often known as Cova.

Cova has headquarters in Denver, in Colorado and Vancouver, and British Columbia, in Canada, and the Company offers services to companies throughout North America.

In a news release, the Company said there’s “no assurance that entry into the LOI will result in a definitive agreement or, if a definitive agreement is reached, the acquisition will close on the terms.” The Company also outlined that “Legal, regulatory, business and financial diligence will need to be satisfactorily completed by both the company and Cova, as well as other customary conditions and approvals.”

In the news release, Cova CEO Gary Cohen indicated his Company is open to a deal. “Combining our industry-leading retail cannabis technology with Waitr’s on-demand delivery logistics network and expertise in payments are a perfect match,” Cohen said. “This should further enable the dispensary retailers utilizing Cova software to grow and thrive.”

The planned acquisition comes at a time when the POS market is becoming increasingly competitive. More vendors have introduced point-of-sale systems in 2021 than in previous years, laying the stage for downward price pressures in the sector and consolidation among enterprises that sell the software to shops.

Additionally, Waitr announced in the news release that its plan to rebrand the Company as ASAP is moving ahead. The Company acquired the ASAP.com domain name and reserved the NASDAQ trading symbol ASAP.

Waitr Holdings Inc., together with its subsidiaries, operates an online ordering technology platform in the United States. Its Waitr and Bite Squad mobile applications (the platforms) provide delivery, carryout, and dine-in options, connecting restaurants, drivers, and diners.

#5: Curaleaf

On Monday, December 13, Curaleaf Holdings, Inc. (OTC: CURLF), a marijuana multistate operator, announced it had obtained commitments for a $425 million privately arranged debt raise. This is the largest debt raise for a U.S. cannabis company to date. In addition, the Company also secured one of the industry’s lowest interest rates.

According to the news release released Monday by the Massachusetts-based Corporation, the five-year senior secured notes carry an annual interest rate of 8%. The agreement also allows for up to $200 million in additional senior bank funding.

Due to stronger balance sheets and increasing marijuana markets, the deal is the largest illustration yet of a transition from equity to debt financing, with significant MSOs enjoying some of the lowest interest rates in U.S. cannabis sector history. St. Louis-based investment firm Stifel GMP wrote that Curaleaf’s debt cost “is equivalent to the lowest the industry has seen to date.”

Trulieve Cannabis, based in Florida, raised $350 million in October through a debt raise with an annual interest rate of 8%. Large MSOs, on the other hand, paid annual interest rates on loans ranging from 11 percent to as high as 20 percent in 2019, according to Stifel.

Curaleaf and Trulieve – the latter acquired Arizona-based Harvest Health & Recreation earlier this year – are the two biggest cannabis companies in the U.S. based on revenue. Eleven cannabis debt financings exceeding $100 million each have closed since December 2020, New York-based Viridian Capital Advisors noted in a research report this week. “Larger transactions are becoming more popular because they cater to the institutional investors entering the market looking for more liquidity,” Viridian wrote. But Viridian noted a wide debt cost spread between large MSOs and smaller plant-touching operators.

Curaleaf Holdings, Inc. 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 Company trades as CURA on the Canadian Securities Exchange and as CURLF on U.S. over-the-counter markets.

#6: Glass House Brands

Glass House Brands Inc. (OTC: GLASF), a vertically integrated California cannabis company, is borrowing up to $100 million to upgrade its recently acquired California greenhouse and other projects.

According to a news release issued Monday, December 13, Glass House will borrow $50 million under the senior secured term loan from an unnamed “US-based private credit investment fund.” Under the terms of the deal, additional loans of $25 million will be available under certain conditions.

The loans, repayable beginning in December 2023, will carry a variable interest rate of 10%-12% annually. Also, Glass House will offer the lender 2 million additional warrants, each of which can be used to purchase a Glass House share until June 2026.

The capital “will be used to fund the phased retrofit of (Glass House’s) approximately 5.5 million square feet cultivation facility currently under renovation in Camarillo, California” as well as for general corporate purposes, the Company said. Glass House acquired the property for $93 million in September.

To support Glass House’s biomass business, the Long Beach-based company stated that its initial facility upgrade would comprise “changing two greenhouses, as well as establishing a packhouse and a distribution center.

“We have a planned total footprint of 6 million square feet and projected total biomass production of approximately 1.7 million pounds, which we believe would make Glass House Brands the largest and most efficient cannabis supplier in the U.S., by a wide margin,” Glass House CEO Kyle Kazan said in a statement.

Glass House Brands was created after special purpose acquisition company Mercer Park Brand Acquisition Corp. acquired Glass House Group in April. The Company’s shares trade as GLAS on the NEO Exchange in Canada and as GLASF on the U.S. over-the-counter markets.

Top Psychedelic Companies for Week

#1: Awakn

Awakn Life Sciences Corp. (NEO: AWKN) (OTC: AWKNF), a biotechnology company developing and delivering psychedelic therapeutics (medicines and therapies) to treat addiction. On Tuesday, December 14, the Company announced the appointment of Paul Carter, former Chief Commercial Officer of Gilead Sciences Inc., as an independent member of its Board of Directors. This move subsequently increased the independent majority on the board. Awakn announced that Mr. Carter would be replacing Dr. Benjamin Sessa, who had resigned from the Board of Directors. Despite this resignation, the Company reported that Dr. Sessa would continue in his day-to-day Co-Founder and Chief Medical Officer role.

Just a day after announcing the appointment of Paul Carter, Awakn reported its financial results and business highlights for the three and nine months ended October 31, 2021. The key financial highlights included announcements that: As of October 31, 2021, the Company had approximately $5.7 million in cash and no debt. As of December 14, 2021, there were 24,887,307 million common shares outstanding. The Company also announced that it had achieved its first revenue of $31,737 via Awakn Oslo AS, compared to $Nil in the prior year.

This great financial report indicates Awakn’s significant progress in developing and delivering effective psychedelic-based therapeutics to treat addiction better.

Key Takeaways; Cannabis Sector

• Canadian marijuana company Tilray acquires a Colorado distillery for $102.9M.
• Canadian marijuana firm Fire & Flower to buy Pineapple Express Delivery.
• Marijuana product maker Valens uplists to NASDAQ.
• Illinois adult-use cannabis sales exceed $1.2 billion through November.
• Marijuana banking access remains steady, even with the demise of the SAFE Banking Act.
• Cannabis REIT Chicago Atlantic Raises $100 Million in NASDAQ IPO.

Key Takeaways; Psychedelic Sector

• Numinus Shares Q4 and Year-End 2021 Results.
• Mydecine Secures C$5.5m in Financing.
• Awakn is conducting the first-ever study of ketamine in gambling addiction to provide a new treatment.

Top Marijuana Stocks for Week

#1:  Tilray

Canadian marijuana producer Tilray, Inc. (NASDAQ: TLRY) has taken another step into the U.S. alcohol industry by acquiring Colorado-based Breckenridge Distillery, with plans to launch cannabis-infused whiskey.

The deal is worth $102.9 million, paid for by issuing 11,245,511 Tilray shares, according to a regulatory filing. The acquisition follows Aphria’s 2020 acquisition of U.S. craft brewer SweetWater Brewing Co. before Aphria and Tilray announced their merger later that year.

“We see tremendous potential for Breckenridge and our existing SweetWater brand to complement each other, expanding their respective reach and driving further profitable growth in our beverage alcohol segment,” Tilray CEO Irwin Simon said in a Wednesday, December 8, news release.

Simon added that the acquisition of the Breckenridge-based distillery “is consistent with Tilray’s strategy of leveraging our growing portfolio of U.S. CPG brands to launch THC-based product adjacencies upon federal legalization in the U.S.”

Specifically, Tilray believes the acquisition will lead to the commercialization of “new and innovative products through the development of non-alcoholic distilled spirits, including bourbon whisky, that is infused with cannabis,” according to the release.

More than 85% of Breckenridge’s revenue comes from Colorado, Tilray said. The company said it plans “to leverage SweetWater’s existing nationwide infrastructure to create new, greatly-expanded consumer awareness and product adoption.” Beverage alcohol revenue comprised $15.5 million of Tilray’s revenue in the company’s most recent quarter or about 9% of total revenue.

Tilray shares trade as TLRY on the Nasdaq and the Toronto Stock Exchange. The company operates through five segments: Cannabis Business, Distribution Business, Beverage Alcohol Business, Wellness Business, and Business Under Development. It provides medical and adult-use cannabis products, pharmaceutical and wellness products, beverage alcohol products, and hemp-based food and other wellness products. It has operations in Canada, the United States, Europe, Australia, New Zealand, Latin America, and internationally. The company was formerly known as Aphria Inc., Tilray, Inc. was incorporated in 2018 and is based in New York, New York.

#2: Fire & Flower

Major Canadian marijuana retail chain Fire & Flower Holdings Corp. (FAF.TO) announced a deal to acquire cannabis delivery service Pineapple Express Delivery on Thursday, December 9.

Toronto-based Fire & Flower will pay for the acquisition by assuming and repaying roughly 5.3 million Canadian dollars (about $4.2 million) of Pineapple Express’ debt and issuing approximately 1,126,761 common shares, subject to the latter reaching unspecified performance milestones in the fiscal year 2022.

Based on Fire & Flower’s opening share price on Thursday morning, those shares would be worth roughly CA$7.2 million. Pineapple Express, based in Burlington, Ontario, performs more than 40,000 cannabis deliveries per month in Canada, according to Fire & Flower’s news release. The acquisition is expected to close in the first quarter of 2022.

In a statement, Fire & Flower CEO Trevor Fencott said the Pineapple Express delivery platform would complement the retailer’s existing technology, including cannabis websites PotGuide and Wikileaf, as well as its Hifyre retail data platform and its Spark Perks loyalty program.

“We see this as an example of the advantages of building, testing, and hardening technology and systems in the federally legal Canadian market before deploying them to the U.S. and other emerging markets,” Fencott said.

Fire & Flower operates as an independent retailer that offers cannabis products and accessories through its retail locations located in the provinces of Alberta, Saskatchewan, Manitoba, Ontario, and Yukon. It also engages in wholesale of regulated cannabis products and accessories in Saskatchewan and operates Hifyre digital retail and analytics of the regulated cannabis e-commerce platform. Fire & Flower has licensed its brand and technology in the U.S. and is working toward a listing on the NASDAQ exchange. Currently, shares of the retailer trade on the Toronto Stock Exchange as FAF.

#3: Valens

Shares of The Valens Company Inc. (NASDAQ: VLNS) commenced trading on the NASDAQ Capital Market on Thursday, December 9, the Kelowna, British Columbia-based business announced in a news release.

“We believe this listing will enable Valens and its greater access to liquidity, increased corporate visibility, and a broader shareholder base, in an effort to create long-term shareholder value,” CEO Tyler Robson said in a statement.

The manufacturer of cannabis products joins Canadian licensed producers on the exchange, including: Cronos Group, based in Toronto; Hexo Corp., which has its head office in Gatineau, Quebec; Canopy Growth of Smiths Falls, Ontario; Aurora Cannabis, based in Edmonton, Alberta, and Organigram Holdings, headquartered in Moncton, New Brunswick.

Shares of companies traded on higher-volume stock exchanges such as the Toronto Stock Exchange (TSX) and NASDAQ generally see increased access to more institutional investors and liquidity. While shares of a number of other Canadian cannabis companies are also traded on the NASDAQ, U.S. “plant-touching” operators have access only to lower-volume exchanges such as the Canadian Securities Exchange and the over-the-counter markets. This is because the NASDAQ and TSX don’t allow plant-touching companies, as it breaks U.S. federal law.

Shares of Valens trade on the TSX and NASDAQ under the ticker symbol VLNS. Valens operates as a cannabis consumer products company. It engages in manufacturing cannabinoid-based products. The company provides proprietary cannabis processing services and is involved in product development, manufacturing, and commercialization of cannabis consumer packaged goods. Its products are formulated for the recreational, health and wellness, and medical consumer segments and offer various cannabis product categories.

#4: Chicago Atlantic

Cannabis-focused commercial real estate finance company Chicago Atlantic Real Estate Finance, Inc. (NASDAQ: REFI) raised $100 million through an initial public offering of 6.25 million shares of its common stock at $16 per share on Wednesday December 8.

The company’s common stock began trading on the NASDAQ Global Market on Wednesday, December 8, under the symbol “REFI.” Chicago Atlantic anticipated closing the offering on or about December 10, 2021. The company also granted the underwriters a 30-day option to purchase up to an additional 937,500 shares of common stock at the IPO price.

In addition, the company plans to use the total gross proceeds of roughly $100 million before deducting underwriting discounts and commissions and other offering expenses and excluding any exercise of the underwriters’ option to purchase additional shares to make investments in accordance with its investment objective and strategies and for general corporate purposes.

JMP Securities LLC, Compass Point Research & Trading, LLC, and Oppenheimer & Co. Inc. will serve as joint book-running managers for the transaction, while Lake Street Capital Markets LLC and East West Markets, LLC act as co-managers.

Chicago Atlantic, managed by Chicago Atlantic REIT Manager, LLC., is looking to provide attractive, risk-adjusted returns for stockholders primarily through consistent current income dividends and other distributions and secondarily through capital appreciation.

Chicago Atlantic operates as a real estate finance company in the United States. The company originates, structures, and invests in first mortgage loans and alternative structured financings secured by commercial real estate properties. It offers senior loans to state-licensed operators and property owners in the cannabis industry. The company has elected to be taxed as a real estate investment trust (REIT), and it would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders.

Top Psychedelic Stocks for Week

#1: Numinus

Numinus Wellness Inc. (TSXV: NUMI, OTC: NUMIF) closed out its fiscal fourth quarter with a strong $59.2 million cash balance and improved revenue following its acquisition of Canadian healthcare start-up Mindspace Wellbeing in February.

For the period ended August 31, 2021, the Vancouver, British Columbia-based mental health care company advancing psychedelic-assisted therapies saw revenue of $0.5 million, up 81.1% from the same quarter of 2020. Gross profit improved to $31,818, compared to a gross loss of $158,222 in 4Q 2020.

“During the fourth quarter, we were focused on building the team, infrastructure, technologies, and protocols that will allow us to scale our business over the next several years,” founder and CEO Payton Nyquvest said in a statement.

“We welcomed several new key executives, began our laboratory expansion, and filed a patent for a proprietary rapid production process for psilocybe.”

For fiscal 2021 as a whole, revenues grew 71.8% year-over-year to $1.5 million, due primarily to the acquisition of Mindspace. It reported a loss of $18.8 million for the year, including a $1.6 million non-cash goodwill impairment charge related to the acquisition of Mindspace, compared to a loss of $9.6 million in fiscal 2020.

#2: Awakn

Awakn Life Sciences Corp (NEO: AWKN, OTCMKTS: AWKNF) is a biotechnology company developing new psychedelic therapeutics to treat addiction better. Awakn also operates clinics delivering treatments in the U.K. and Europe, which provides free cash flow to reinvest back into the biotech side of the business.

Awakn is currently utilizing ketamine, MDMA, and novel chemical entities to allow people suffering from addiction to finally escape from their repetitive, addictive behaviors and thoughts. Specifically, Awakn has acquired the exclusive rights to the world’s only phase IIb clinical trial for Ketamine-Assisted Psychotherapy and the world’s only phase IIa clinical trial for MDMA-Assisted Psychotherapy to treat Alcohol Use Disorder.

Awakn clinics will deliver ketamine-assisted psychotherapy in the near term and will utilize MDMA when Awakn secures marketing authorization. Some Awakn clinics will also be sites for Awakn research’s clinical trials.

On average, each clinic will generate GBP£4 million in revenue per year. Awakn is targeting to have 20 clinics operational by the end of 2023. That would provide the company with a GBP£80 million run rate. This free cash flow will allow for reinvestment back into the biotech side of the business in a non-dilutive manner to shareholders.

#3: Mydecine

Mydecine Innovations Group Inc. (OTC: MYCOF, NEO: MYCO) announced an agreement with an investor to complete a non-brokered private placement of a convertible secured subordinated debenture in the principal amount of C$5.5 million.

The company said the financing, which was expected to close on December 10, 2021, will allow it to continue to make progress on its research and development (R&D), clinical trials, and technology initiatives.

“This financing will give Mydecine the runway needed to continue meeting important milestones like launching our smoking cessation study in partnership with Johns Hopkins University and PTSD (Post Traumatic Stress Disorder) studies with various global military-focused organizations, furthering our drug development initiatives and growing paid subscribers on our telehealth platform Mindleap,” Mydecine Innovations Group CEO Josh Bartch said in a statement.

As part of the financing, the investor was also issued warrants to acquire up to 32,352,941 company common shares, at a price of $0.17 per share, at any time up to 36 months following the closing of the financing.

As well, Mydecine said it has been in communication with the U.S. Food and Drug Administration (FDA) and plans to hold a Pre-IND meeting in February for its seamless Phase 2/3 smoking cessation clinical trial assessing MYCO-001, 99% pure psilocybin, to treat nicotine dependence.

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.