Key Takeaways; Cannabis Sector

• Tilray reported mixed Q2 results amid revenue growth and continued losses
• Safe Harbor eliminated $1.2M liability in credit union deal
• Agrify sold cultivation business to former CEO’s firm for $7 million 
• Canopy USA appointed cannabis veteran as first president to lead U.S. expansion

Key Takeaways; Psychedelic Sector

• atai announced key leadership changes to propel psychedelic therapeutics development
• Awakn secured unsecured credit facility to support research and development

Below is a weekly roundup of what happened this week in the cannabis and psychedelic sectors. In this ever-evolving landscape, we explore the major developments and groundbreaking initiatives happening among companies operating in these industries; from advancements in medical research, therapeutic applications to shifts in legal frameworks and current market trends.

Top Marijuana Companies for the Week

#1: Tilray

Tilray Brands, Inc. (NASDAQ: TLRY), a global cannabis and lifestyle consumer goods company, recently announced its financial results for the second quarter of fiscal 2025. While the company recorded revenue growth and improved profitability metrics in key segments, it faced challenges that led to significant net losses, causing its stock to drop over 11% on Friday, January 10, 2025.

Tilray achieved a 9% year-over-year revenue increase, reaching $211 million, slightly below Wall Street’s expectations of $216.3 million. Despite the miss, this marked consistent progress compared to the $194 million reported in the prior year quarter. The beverage alcohol segment demonstrated robust performance, with a 36% revenue increase to $63 million, supported by improved gross margins of 40% compared to 34% a year ago. The wellness division also saw a 13% revenue rise to $15 million, while cannabis revenues remained steady at $66 million.

Gross profit grew 29% year-over-year to $61 million, with the gross margin improving from 24% to 29%. However, the company reported a net loss of $85 million, of which $75 million consisted of non-cash items like foreign exchange losses and stock-based compensation. Adjusted net loss stood at $2 million, in line with the previous year. Adjusted EBITDA fell slightly to $9 million from $10 million, impacted by strategic SKU rationalization in the beverage segment.

Irwin D. Simon, Chairman and CEO of Tilray Brands, expressed optimism about the company’s long-term prospects. “Our fiscal second quarter demonstrates strong progress on our strategic plan. We are improving gross margins and profitability across all segments, and we remain committed to achieving our financial guidance for the year,” he stated. Simon also emphasized Tilray’s goal to solidify its leadership in the beverage, cannabis, and wellness markets while preparing for potential U.S. cannabis legalization.

As for the outlook for fiscal year 2025, Tilray reaffirmed its revenue guidance of $950 million to $1 billion, reflecting 17.6% growth at the midpoint. Analysts also project a 14.4% revenue increase over the next 12 months, suggesting acceleration in product performance and market penetration. However, persistent cash burn and infrastructure demands remain challenges. Tilray reported a negative free cash flow margin of 21.9%, burning $46.19 million in the quarter.

#2: Safe Harbor

Colorado-based SHF Holdings, Inc. (NASDAQ: SHFS), a leading cannabis industry financial services firm, which operates as Safe Harbor Financial, recently announced that it had restructured its partnership with Partner Colorado Credit Union (PCCU), eliminating $1.2 million in indemnity liability from its balance sheet. The modified four-year agreement deal, which came into effect on January 1, 2025, simplified the company’s operations by removing the requirement for Safe Harbor to maintain loan loss reserves for cannabis industry loans. 

Safe Harbor CEO, Sundie Seefried, called the update a “positive and pivotal development,” highlighting its role in addressing contingent liability exposure and aligning expenses with income more effectively. The adjusted fee structures and removal of loan indemnification are expected to enhance the company’s financial performance and boost shareholder value.

Safe Harbor has a strong track record in the cannabis banking sector, serving over 600 clients across more than 40 states and processing $23 billion in deposit transactions. The company recently reported a return to profitability, with a net income of $353,817 in the third quarter 2024 financial results, compared to a $748,067 loss a year earlier. Loan interest income rose 48% to $1.3 million during the same period.

This updated partnership with PCCU will help Safe Harbor builds on its commitment to supporting cannabis operators. The company’s recent initiative was a $500,000 loan to Denver-based PI 51st Avenue for helping the company implement energy-saving initiatives, which further highlighted Safe Harbor commitment to supporting the cannabis sector’s sustainability and innovation.

#3: Agrify

Agrify Corporation (NASDAQ: AGFY) announced it had completed the sale of its cannabis cultivation business to CP Acquisitions LLC, an investment firm affiliated with its former CEO, Raymond Chang, in a $7 million deal. The deal, which was finalized on December 31, 2024, marked a significant step in the company’s restructuring efforts.

The sale included the transfer of Agrify’s vertical farming units, Agrify Insights software, and related cultivation assets. Additionally, CP Acquisitions assumed liabilities tied to the cultivation operations and terminated two convertible notes valued at approximately $7 million.

“This transaction allows us to simplify our business and concentrate on more attractive growth categories tied to THC demand,” said Ben Kovler, Agrify’s interim CEO and chairman.

Kovler, who also serves as CEO of Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF), emphasized that Agrify will now focus on its hemp-derived THC Delta 9 (HD9) beverage lines. The company’s flagship THC product, the THC-infused margarita Señorita, is currently sold in nine U.S. states and Canada, with plans for further expansion.

This agreement deal follows a series of significant changes at Agrify, including a $20 million funding injection from a Green Thumb subsidiary and a subsequent management overhaul in November. The shake-up saw former CEO Raymond Chang and major investor I-Tseng Jenny Chan step down from Agrify’s board. Kovler, who was then Green Thumb’s CEO, took over as Agrify’s interim CEO during this transition. At the time, he highlighted a strong preference for Agrify’s extraction division, calling it a “high-end segment with pricing power and a loyal consumer base.” The follow up on these changes saw Chan sell her stake in Agrify for $18.3 million, signaling a broader financial realignment.

In addition to divesting its cultivation assets, Agrify recently acquired Double or Nothing, a hemp-based THC beverage maker known for its Señorita brand. The all-stock transaction reflected the company’s commitment to expanding its THC beverage portfolio.

Agrify’s stock, which trades under the ticker AGFY on Nasdaq, had continuously faced compliance challenges in recent months. However, the conversion of $13.8 million in debt to equity in May helped the company regain compliance with Nasdaq stockholders’ equity requirement.

And with its cultivation business now in the hands of CP Acquisitions, Agrify aims to solidify its position in the rapidly growing THC beverage market. As Kovler stated, “Focus drives excellence, and this move enables us to pursue our vision with clarity and precision.”

#4: Canopy Growth

Canopy USA, the American arm of Canadian cannabis operator Canopy Growth Corporation (NASDAQ: CGC) (TSX: WEED), named cannabis industry veteran Brooks Jorgensen as its first president. According to the company, Jorgensen, who brings over 25 years of experience in both the cannabis and alcohol beverage industries, will focus on driving profitable growth across the United States.

“Brooks is an accomplished executive in high-growth industries,” said Luc Mongeau, CEO of Canopy Growth and a board member of Canopy USA. “He will help unlock the full potential of Canopy USA, drive the organization to its next phase of growth, and solidify its standing as a leader in the market.”

Jorgensen brings a wealth of expertise, having served as president of Kiva Sales & Service, a leading California cannabis distributor. Prior to that, he spent over two decades at Southern Glazer’s Wine & Spirits and Moet Hennessy USA.

“Canopy USA is a unique platform with the right combination of ingredients to deliver success as a unified organization in what is considered a very challenging and complex industry,” Jorgensen said. “I am confident the cannabis and hemp markets will support the Canopy USA vision and strategy.”

Jorgensen’s appointment comes at a pivotal moment for Canopy USA, which is expanding its portfolio through key acquisitions. The company recently completed the purchase of marijuana brands, including the edibles manufacturer Wana Brands, California-based extract producer Jetty Extracts, and the acquisition of US multistate operator Acreage Holdings. These moves are part of Canopy Growth’s broader strategy to accelerate its entry into the U.S. cannabis market, a plan initially announced in 2022.

As Jorgensen steps into his new role, Canopy USA feel it’s poised to leverage its diverse brand portfolio to thrive in the competitive U.S. cannabis industry. “With the completed integration of the Canopy USA platform, this unique portfolio of brands, together with a growing retail presence in key states, represents significant upside in the dynamic U.S. cannabis industry,” Mongeau stated.

Top Psychedelic Companies for Week

#1: atai

atai Life Sciences (NASDAQ: ATAI), a clinical-stage biopharmaceutical company focused on transforming mental health treatment, made several key leadership changes to drive its novel psychedelic therapeutics pipeline forward. Dr. Srinivas Rao, Co-founder of the company, assumed the role of sole Chief Executive Officer (CEO). Alongside this appointment, Kevin Craig was promoted to Chief Medical Officer (CMO), Glenn Short, was also promoted to Chief Scientific Officer (CSO), and Gerd Kochendoerfer, joined as Chief Operating Officer (COO).

These appointments come as atai prepares for pivotal clinical trials. Dr. Rao emphasized, “We have strengthened our leadership team at a pivotal time as we advance VLS-01 and EMP-01 into Phase 2 clinical trials”. The new leadership is expected to enhance clinical development, scientific innovation, and operational excellence, positioning atai for success in its trials.

Dr. Rao, who was promoted to Co-CEO effective June 1, 2024, and assumed the role of CEO on January 1, 2025, has over 24 years of diverse biotechnology and pharmaceutical experience. Dr. Craig, who’s now CMO, brings his vast clinical background, having previously led early clinical development at Jazz Pharmaceuticals plc (NASDAQ: JAZZ). Dr. Short, who was appointed as CSO, will lead the company’s research programs and advance non-hallucinogenic 5-HT2AR agonists, while Dr. Kochendoerfer, who has more than 25 years of experience, will oversee operational strategies.

These leadership changes aim to bolster atai’s efforts in advancing treatments like VLS-01 and EMP-01, which are poised to address the unmet needs of those suffering from depression and anxiety disorders. VLS-01 is currently undergoing Phase 2 trials, and the company plans to initiate a Phase 2a trial for EMP-01 in early 2025, with results expected by 2026.

#2: Awakn

Awakn Life Sciences Corp. (CSE: AWKN) (OTC: AWKNF), a biotechnology company developing therapeutics for substance use and mental health disorders, recently announced the successful acquisition of an unsecured credit facility worth up to US$535,000. The credit, which was provided by an arm’s length creditor, is designed to support the company’s ongoing research and development efforts.

The credit facility, which was outlined in a grid promissory note, is flexible, allowing Awakn to draw on the funds in multiple advances. The principal drawn under the facility will be due for repayment on December 5, 2026, bearing a 10% annual interest rate. Awakn stated that it intends to utilize the funds primarily for general working capital purposes as it advances its clinical projects.

“We continue to make significant progress on research programs, including our lead program AWKN-001, which is in Phase 3 trials in the UK, and AWKN-002, which is in Phase 2 planning in the US. This facility extends our runway as we progress towards new milestones,” said Anthony Tennyson, CEO of Awakn.

Awakn is committed to providing breakthrough therapeutics for addiction, focusing on Alcohol Use Disorder, which affects millions of individuals in key markets. The company’s strategy is to commercialize its R&D pipeline across multiple channels, offering hope to those in need of new treatments.

Key Takeaways; Cannabis Sector

• Vireo Growth raised $81M in oversubscribed funding round; the company aims to expand operations across seven states
• iAnthus acquired premium vape brand Cheetah in $1.5M all-stock deal
• Entourage Health to go private in union pension fund deal.
• Cansortium and RIV Capital finalized merger to create a multistate cannabis powerhouse

Key Takeaways; Psychedelic Sector

• Graft Polymer to acquire Awakn Life Sciences in all-stock deal.

Below is a weekly roundup of what happened this week in the cannabis and psychedelic sectors. In this ever-evolving landscape, we explore the major developments and groundbreaking initiatives happening among companies operating in these industries; from advancements in medical research, therapeutic applications to shifts in legal frameworks and current market trends.

Top Marijuana Companies for the Week

#1: Vireo Growth

Minnesota-based cannabis multistate operator Vireo Growth Inc. (CSE: VREO) (OTCQX: VREOF) successfully raised $81 million in an oversubscribed funding round, surpassing its initial target of $75 million. The funding round, which concluded on December 30, involved the issuance of 129.5 million new shares priced at $0.625 each.

According to the company, the proceeds from the raise will be directed toward business development, including organic and acquisitive growth, working capital, and general corporate purposes. Vireo’s newly appointed CEO, John Mazarakis, who also co-founded Chicago Atlantic, described the raise as “the beginning of a new chapter for Vireo.”

As part of its aggressive expansion strategy, Vireo recently announced four major acquisitions valued at nearly $400 million, executed entirely as stock-based deals. These acquisitions included Deep Roots Harvest in Nevada, Proper Brands in Missouri, WholesomeCo Cannabis in Utah, and The Flowery in Florida. Additionally, the company also acquired Arches, a delivery and analytics platform that it developed and spun out in 2023. This platform will be exclusively licensed to Vireo’s portfolio of companies as regulations evolve.

Once these deals close, which is expected within six months, Vireo’s operational footprint will expand to seven states, featuring nine cultivation facilities, 48 retail outlets, and over 1 million square feet of cultivation canopy.

Chicago Atlantic, which is a cannabis-focused investment firm and Vireo’s largest shareholder, played a crucial role in structuring the funding round and acquisition deals. “This partnership strengthens our ability to execute strategic investments and position ourselves as a leader in the cannabis industry,” Mazarakis stated.

The company also announced significant leadership changes, including Mazarakis stepping into the CEO role and additional C-suite adjustments designed to align with Vireo’s growth and integration objectives.

#2: iAnthus

iAnthus Capital Holdings, Inc. (CSE: IAN) (OTCQB: ITHUF), a multistate cannabis operator, recently announced the acquisition of Cheetah Enterprises Inc., an Illinois-based vape brand known for its premium live-resin products. The all-stock deal is valued at $1.5 million, with additional non-material cash payments tied to performance benchmarks extending through April 2028.

According to iAnthus, the acquisition aligns with the company’s strategy to expand its portfolio of marijuana brands and drive long-term growth. By integrating Cheetah, iAnthus will enhance its presence in the Illinois and Pennsylvania cannabis markets, with plans for further expansion through 2025. 

“We are building a platform where bold brands can thrive, and Cheetah fits that mold perfectly,” said Richard Proud, CEO of iAnthus. He added, “Cheetah’s innovative approach to the vape market mirrors the agility, precision, and speed with which we’re building iAnthus. This acquisition gives us the momentum to win with consumers, expand into new markets, and bring top-industry talent into our organization.”

Cheetah is recognized for its innovative and high-quality live resin vapes, which are often sourced from various cultivator strains. A unique aspect of the brand is its commitment to donating a portion of its proceeds to the Cheetah Conservation Fund. Under terms of the deal, Cheetah co-founder and CEO Michael Piermont will join iAnthus as Chief Commercial Officer.

Piermont also expressed excitement about the partnership, stating, “From day one, Cheetah’s mission has been about being fearless, fast, and innovative to our consumers – qualities that clearly align with iAnthus’ vision for the future of cannabis.” 

This acquisition is expected to boost iAnthus’ revenue growth and provide Cheetah with the resources and distribution network needed to expand its market penetration in Illinois and other key regions. Despite its growth initiatives, iAnthus continues to face financial challenges, last month the company reported a working capital deficit of $31.4 million and an accumulated deficit of $1.3 billion as of the third quarter of last year. The company also reported a 6.3% revenue drop in the same quarter. Nonetheless, iAnthus continues to navigate financial hurdles as it builds a more robust brand portfolio.

#3: Entourage Health

Canadian cannabis producer Entourage Health Corp. (TSXV: ENTG) (OTCQX: ETRGF), formerly known as WeedMD, recently announced a definitive agreement to go private. Under the agreement, LiUNA Pension Fund of Central and Eastern Canada (LPFCEC) will acquire all outstanding shares of Entourage for C$0.005 per share, marking a critical step in resolving the company’s ongoing financial struggles.

Entourage has been facing significant financial challenges, including C$167.6 million in debt under credit agreements with LPFCEC. The company breached debt covenants in April 2024 and has since relied on multiple forbearance extensions, with the latest waiver set to expire on January 15, 2025. Jason Alexander, Chair of Entourage’s special committee, emphasized that the transaction offers “the most favorable outcome for the company and its shareholders in light of the current challenges.”

The company’s financial instability was further highlighted in the third quarter 2024 financial results, when the company reported a C$171.4 million working capital deficit and C$390.5 million in accumulated losses as of September 30, 2024. Despite a modest 11% increase in third-quarter revenue to C$13.6 million, Entourage reported C$8.3 million in quarterly losses, highlighting the urgent need for financial intervention.

The transaction requires approval from two-thirds of shareholders at a special meeting, which is scheduled for February 2025. Insiders, who collectively hold 27% of the shares, have already committed their support to the deal through voting agreements.

Upon completion, Entourage’s shares will be delisted from the TSX Venture Exchange, and the company will cease being a reporting issuer under Canadian securities law.

Entourage operates a 26,000-square-foot medical cannabis processing facility in Aylmer, Ontario, through its Starseed brand, which maintains an exclusive partnership with LiUNA. By going private, the company aims to stabilize its operations and address its substantial debt load while providing shareholders with immediate liquidity.

#4: Cansortium

Florida-based Cansortium Inc. (CSE: TIUM.U) (OTCQB: CNTMF), which operates under the Fluent brand, recently announced that it had completed its merger with New York-based RIV Capital Inc., marking a significant milestone in the cannabis industry. This merger expanded Fluent’s footprint to include 42 dispensaries across four states; Florida, Pennsylvania, Texas, and New York along with eight cultivation and processing facilities. The combined company aims to capitalize on the rapidly growing cannabis market in New York and enhance its overall operational capabilities. 

As part of the merger, shareholders of Cansortium now hold 51.25% of the new entity, while RIV Capital shareholders own 48.75%. The merger also eliminated $160 million in company debt, which was aided by the conversion of shares and the $33 million in liquidity brought in by RIV Capital. Additionally, Cansortium’s CEO since 2020, Robert Beasley, will lead the combined company, while RIV Capital’s interim CEO, David Vautrin, will serve as chief commercial officer.

The merger granted Fluent immediate access to New York’s fast-growing adult-use cannabis market, where RIV Capital operates the Etain marijuana brand, which was acquired from Etain Health for $247 million in 2022. 

Beasley emphasized the importance of this expansion, stating, “Not only does this move accelerate Fluent’s entry into one of the largest and fastest-growing cannabis markets in the world, but it expands our retail door count to 42, adding our first wholesale division and expanding our house of brands.”

Financially, the merger positions Fluent for sustainable growth. The company secured a $96.5 million senior credit agreement in November, and plans to use these funds, along with RIV’s cash reserves, to explore strategic acquisitions in key markets such as New York and Pennsylvania. And despite both companies reporting significant losses in the third quarter of 2024; $11.7 million for Cansortium and $63.4 million for RIV Capital, their combined resources and operational expertise are expected to drive long-term profitability and cash generation.

This merger also highlighted the ongoing trend of consolidation within the cannabis industry, as companies join forces to pool resources and remain competitive in an increasingly regulated and crowded market. A notable beneficiary of this deal is The Scotts Miracle-Gro Company (NYSE: SMG), which has been expanding its influence in the cannabis sector. Through its subsidiary, The Hawthorne Collective, Scotts Miracle-Gro holds a significant stake in the newly formed Fluent, further solidifying its position in this evolving industry.

Top Psychedelic Company for Week

#1: Awakn

Awakn Life Sciences Corp. (CSE: AWKN) (OTC: AWKNF), a biotechnology company developing therapeutics for substance use and mental health disorders, recently announced it had entered into a binding letter of intent with Graft Polymer (UK) PLC, under which Graft will acquire all of Awakn’s outstanding shares in an all-stock deal valued at C$8.8 million. Graft, which is a UK-based biotechnology company, is also focused on developing therapeutics for mental health and substance use disorders. The acquisition comes after a commercial collaboration between the two companies earlier in 2024, which paved the way for the deal.

Under the terms of the agreement, Awakn shareholders will receive 46.67 ordinary shares of Graft for each share they hold. Additionally, outstanding restricted share units and deferred share units will also be converted into Graft shares. The deal is expected to close by June 2025, pending approval from both companies’ boards, shareholders, and regulators.

Awakn’s research and clinical programs, particularly in substance use and mental health, are expected to enhance Graft’s therapeutic pipeline. And therefore, this acquisition is seen as a strategic move to expand Graft’s focus on addressing global mental health and addiction challenges. 

Graft’s Chairman, Dennis Purcell, emphasized the significance of this deal saying; “This proposed acquisition marks an important milestone for Graft Polymer as we broaden our focus to address the pressing global challenges of addiction and mental health disorders. Awakn’s advanced research and clinical programs offer the potential to develop more effective and accessible treatments for these critical areas of need. We believe this strategic move will not only drive value for our shareholders but also contribute meaningfully to improving the lives of millions impacted by these conditions.”

George Scorsis, Chairman of Awakn’s Board of Directors, also expressed his enthusiasm for the deal, stating, “This proposed acquisition by Graft Polymer marks a significant milestone for Awakn Life Sciences and our mission to provide breakthrough therapeutics for substance use and other mental health disorders. We have had a significant portion of our operations in the UK for the entire life of our business, and following completion of the Proposed Transaction, Awakn will have access to the UK’s deep pool of liquidity as well as the international investor base positioned in London. We believe this transaction will create long-term value for our shareholders and provide new opportunities for growth and collaboration.”

Anthony Tennyson, CEO of Awakn, also weighed in, stating, “I’m excited about the opportunity for Awakn to join forces with Graft Polymer. This acquisition positions us to better leverage our resources and expertise in the UK, expanding our capacity to deliver new therapeutics for addiction and mental health challenges.”

Awakn’s recent financial performance has been challenging, with the company reporting a net loss of C$376,126 for the most recent quarter. Despite this, the acquisition is viewed as a step toward long-term value creation.

Key Takeaways; Cannabis Sector

• Organigram acquired Motif Labs in a transformational move that will make the company Canada’s new cannabis leader
• Safe Harbor Financial leads the charge in sustainable cannabis financing with $500K loan
• Rubicon Organics secured CA$10 million in credit to strengthen its financial position
• Glass House Brands is seeking $25 million for expansion via stock market

Key Takeaways; Psychedelic Sector

• Red Light Holland reports 40% revenue growth and reduced losses 
• Awakn is pioneering therapeutics for trauma and addiction

Below is a weekly roundup of what happened this week in the cannabis and psychedelic sectors. In this ever-evolving landscape, we explore the major developments and groundbreaking initiatives happening among companies operating in these industries; from advancements in medical research, therapeutic applications to shifts in legal frameworks and current market trends.

Top Marijuana Companies for the Week

#1: Organigram

In a landmark deal for the Canadian cannabis industry, Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), a leading licensed cannabis producer, made a bold move to solidify its position as the nation’s top player by acquiring Motif Labs Ltd. in a deal valued at CAD $90 million (USD $63.6 million). The acquisition consists of CAD $50 million in cash and CAD $40 million in Organigram shares, with an additional CAD $10 million contingent on the company’s share performance within the next year. The acquisition will provide Organigram with a combined 12.4% market share in the Canadian recreational cannabis sector, catapulting the company to the number one position.

Motif Labs, which is headquartered in Aylmer, Ontario, is a renowned producer of cannabis extracts, concentrates, and topicals. Its flagship BOXHOT brand has been Canada’s top-selling vape product in 2024, complemented by other successful brands such as Boondocks, Debunk, and Rizzlers. Beena Goldenberg, CEO of Organigram, celebrated the acquisition, stating, “This deal establishes Organigram as Canada’s largest cannabis company by market share and accelerates our vision to lead across all major categories.”

Motif’s expertise in manufacturing and innovation, including advanced extraction techniques like CO2 and hydrocarbon processes; as a result, it’s expected that this acquisition will enhance Organigram’s ability to produce high-quality products at scale. The deal also includes the addition of Motif’s new distribution hub in London, Ontario, which will streamline logistics and reduce costs.

Financially, Motif has been a standout performer, growing its revenues from CAD $35 million in 2022 to CAD $86 million in 2023. The company has maintained 15 consecutive quarters of positive adjusted EBITDA and established a 21.2% market share in the vape category.

This acquisition is expected to yield over CAD $10 million in cost synergies within the next two years, driven by operational efficiencies and vertical integration. It will also position Organigram to leverage its expanded capabilities for global opportunities as the cannabis industry continue to evolve.

#2: Safe Harbor Financial

Colorado-based SHF Holdings, which does business as Safe Harbor Financial (NASDAQ: SHFS) reinforced its leadership in sustainable financing within the cannabis industry by issuing a $500,000 loan to PI 51st Avenue, LLC, a subsidiary of Pioneer Interests, Inc., which is a Denver-based cannabis operator also known as Natty Rems.

This loan, which was offered under Safe Harbor’s Cannabis Resource Optimization Program (CROP), was made possible through a partnership with the Collective Clean Energy Fund (CCEF) and Partner Colorado Credit Union (PCCU). This collaboration enabled the loan to have a cash collateral arrangement and interest rate buydown, hence significantly reducing borrowing costs for the operator.

“Through partnerships like these, Safe Harbor Financial is setting the standard for responsible lending in the cannabis sector,” said Sundie Seefried, CEO of Safe Harbor Financial. “Our ability to align with nonprofit and financial institutions to offer environmentally conscious financing solutions underscores our commitment to both industry growth and sustainability.”

The loan will enable PI 51st Avenue to invest in energy-saving lighting and other critical upgrades, hence reducing its energy consumption and environmental footprint. Energy consumption in cannabis cultivation is a pressing issue, with facilities accounting for 2% of Colorado’s electricity use. The upgrades financed by this loan will not only lower the company’s environmental footprint but also cut operational costs, as energy expenses represent nearly 33% of growers’ budgets.

Safe Harbor’s initiatives are designed to address these challenges. The company’s CROP program empowers cannabis businesses to optimize resources, minimize costs, and contribute to Colorado’s broader clean energy objectives.

#3: Rubicon Organics

Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF), a cannabis producer based in British Columbia, secured CA$10 million in credit facilities to bolster its liquidity and support future growth. According to the company, the credit facilities, which were provided by Community Savings Credit Union and another lender, will be used to fully repay $8 million debenture owed to Green Island Investments, which is set to mature on December 31, 2024. “We are pleased to announce the establishment of our new Credit Facilities, which underscores our commitment to strengthening our financial position and supporting our strategic growth initiatives,” said Janis Risbin, CFO of Rubicon Organics.

The new credit facilities come with a five-year term and a 6.75% interest rate, replacing the previous secured debenture with a higher interest rate of 7.5%. “Our new Credit Facilities enhance our liquidity and provide us with the flexibility to invest in key projects that will drive long-term value for our shareholders,” Risbin added. The loan is secured by a first-ranking security interest in the company’s present and future assets.

Mike Schilling, President and CEO of Community Savings Credit Union, also expressed support for the deal, saying, “Community Savings is committed to supporting all our members in the Cannabis industry, large and small. We are delighted to partner with Rubicon on this milestone deal which will support their continued success.” This strategic move comes after Rubicon’s reported loss of CA$1.1 million for the 2023 fiscal year, despite a modest profit of CA$889,166 in its fourth quarter. 

#4: Glass House Brands

Glass House Brands Inc. (CBOE CA: GLAS.A.U) (OTCQX: GLASF), a California cannabis company, recently announced plans to raise up to $25 million through an at-the-market (ATM) equity program to fund the expansion of its cultivation facilities in California. The ATM program, which was detailed in a filing with securities regulators, will allow the company to sell subordinate voting shares to the public, with proceeds primarily directed towards Phase III expansion.

The announcement comes after the company reported strong results in third quarter 2024 financial results, with a 128% year-over-year increase in cannabis production and a record-low cultivation cost. The company’s CEO, Kyle Kazan, emphasized the company’s strong performance in Q3 stating: “During the third quarter, we delivered record-setting results, with a 128% increase in cannabis production, a record-low quarterly cultivation cost, and growth across all business lines.” He further explained that while Glass House can cover its existing obligations from current cash flow, it is strategically positioning itself to raise capital under favorable conditions, without urgent debt maturity for over two years. 

The Phase III expansion, which is expected to begin generating revenue by the fourth quarter of 2025, involves retrofitting Greenhouse 2 with advanced systems like blackout curtains, misting, CO2 systems, and lighting. Kazan said, “With 11,000 lights already installed in Greenhouse 2, we expect to produce 275,000 pounds of cannabis annually in its first full year, with improved quality and consistency year-round.”

The equity distribution program allows Glass House to sell up to $25 million worth of shares, with pricing varying based on market conditions. According to the company, the sale proceeds will primarily fund the Phase 3 expansion and general corporate purposes. Sales will occur on CBOE Canada or any another recognized Canadian marketplace, in compliance with applicable regulations.

Top Psychedelic Company for Week

#1: Red Light Holland

Red Light Holland Corp. (CSE: TRIP) (OTCQB: TRUFF), a Canadian psychedelics company focused on functional mushrooms, posted a 40% increase in revenue for its second quarter of 2025. According to the company, the strong growth, particularly in its mushroom grow kit sales, was driven by expanding markets in North America and Europe, including key partnerships with Costco Canada and success in the Netherlands.

Red Light CEO, Todd Shapiro, emphasized the company’s progress, saying, “Our Q2 results reflect our unwavering commitment to sustainable growth, strategic partnerships, and strong financial discipline. With revenues growing by 33.9% year-over-year and a significant reduction in EBITDA, we are clearly on the path to long-term profitability”. 

Red Light Holland reported $1.4 million in revenue for the quarter, a 39.1% increase compared to the previous year, and a reduction in EBITDA losses by 64.3%, showing the company’s operational efficiency and cost control measures.

The company’s diversified portfolio, which includes mushroom grow kits and psilocybin truffles, has allowed it to expand across key regions. Shapiro noted, “Nearly all our income-generating portfolio companies have seen growth, with every business except one running in the black.” Despite broader challenges such as high interest rates and tourism downturns, Red Light Holland is positioning itself for continued success, especially with upcoming potential regulatory changes surrounding psilocybin.

The company also highlighted its strong cash position, which now stands at approximately $13.5 million, bolstered by a sales tax refund and payments from Costco. Additionally, Red Light Holland’s board announced that Ann Barnes would be stepping down, and the company is in talks with potential new board members.

Looking ahead, the company is preparing to capitalize on emerging market opportunities, especially in the realm of psilocybin treatments for veterans, with Shapiro concluding, “We are excited for the new year and the renewed focus on healthy eating and alternatives to ‘Big Pharm.’ We are confident that our strategy will pay off as we continue executing our vision of becoming the leading provider of functional mushrooms and psilocybin products in North America and Europe.” 

#2: Awakn

Awakn Life Sciences Corp. (CSE: AWKN) (OTC: AWKNF), a clinical-stage biotechnology company, is making strides in addressing unmet needs in mental health and addiction treatment. Through the development of novel therapies and medications, Awakn aims to redefine the standard of care for conditions like Alcohol Use Disorder (AUD) and trauma-related mental health disorders.

Awakn’s latest advancements focus on aminoindanes, a class of molecules with pharmacological properties similar to MDMA. These compounds stimulate serotonin, dopamine, and noradrenaline release while blocking reuptake, creating empathogenic effects essential for trauma therapy. But unlike MDMA, aminoindanes offer a patentable, targeted approach to treating trauma-related mental health disorders.

Additionally, Awakn is developing Medication-Assisted Treatments (MATs) targeting the brain circuits that drive addiction. By disrupting the neural pathways that fuel addictive behaviors, these therapies enable patients to break free from destructive cycles and engage in psychotherapy for lasting recovery.

Moreover, Awakn is also currently conducting trials for its widely known AUD-focused therapies, including a key Phase 3 study for AWKN-001. This trial, which is supported by the UK’s Medical Research Council (MRC) and other leading institutions, combines ketamine-based medication with manualized psycho-social support. The trial spans across multiple NHS sites, reflecting the scalability and the potential impact of Awakn’s approach.

Awakn CEO Anthony Tennyson and Chief Research Officer Prof. David Nutt lead the charge with a commitment to transforming care standards. Through strategic partnerships and clinical advancements, Awakn aims to deliver life-changing solutions to millions in desperate need.

Key Takeaways; Cannabis Sector

• Agrify secured $25.9 million through non-brokered private placement
• Cannabis giant StateHouse Holdings’ assets up for sale in record receivership deal
• Simply Solventless surpassed guidance and reported robust financial growth in Q3 2024
• Decibel reported mixed Q3 financial results amid market adjustments

Key Takeaways; Psychedelic Sector

• Psyence Biomedical announced 1-for-75 share consolidation to maintain Nasdaq listing requirements
• Awakn is pioneering therapeutics for trauma and addiction

Below is a weekly roundup of what happened this week in the cannabis and psychedelic sectors. In this ever-evolving landscape, we explore the major developments and groundbreaking initiatives happening among companies operating in these industries; from advancements in medical research, therapeutic applications to shifts in legal frameworks and current market trends.

Top Marijuana Companies for the Week

#1: Agrify

Agrify Corporation (NASDAQ: AGFY), a leading provider of solutions for the cannabis and hemp industries, successfully raised $25.9 million through a non-brokered private placement. The placement was priced at $22.30 per share and involved institutional and accredited investors.

Agrify chairman and interim CEO, Benjamin Kovler, highlighted the significance of the funding, stating, “This funding is a strong move for Agrify and our shareholders as we were able to raise approximately $26 million in a non-brokered deal (gross equals net). We plan to allocate this capital into opportunities within our circle of competence to benefit stockholders.”

Kovler also demonstrated his confidence in the company by purchasing 10,000 shares of common stock at $38.76 per share during the private placement.

As part of the transaction, investors will receive pre-funded warrants to ensure compliance with ownership limits, specifically preventing any investor from exceeding 4.99% beneficial ownership of Agrify’s common stock. These securities are not registered under the Securities Act of 1933 and may not be publicly traded without proper registration or an applicable exemption. Agrify stated that it plans to file a resale registration statement within 45 days if requested by investors.

According to the company, the proceeds from the placement will support general corporate purposes, including working capital and business development. This influx of capital strengthens Agrify’s ability to seize market opportunities in the evolving cannabis and hemp industries.

The company also provided an update on its pending Señorita brand acquisition, affirming that the deal remains on track to close by the end of the year. Kovler expressed enthusiasm about the opportunities ahead, stating, “The team continues to work hard to close the previously announced Señorita transaction. We are excited about the opportunity set and current consumer trends in cannabis and hemp.”

#2: StateHouse Holdings

The assets of California-based cannabis operator StateHouse Holdings Inc. (CSE: STHZ) (OTC: STHZF), formerly known as Harborside, are now on the market in what could be the U.S. cannabis industry’s largest receivership deal to date. San Diego brokerage Green Life Business Group is overseeing the sale on behalf of Receivership Specialists. This move comes just a few months after StateHouse’s bankruptcy filing in October.

StateHouse’s portfolio includes 11 retail stores operating under the Harborside and Urbn Leaf brands, cultivation properties, nurseries, and processing and distribution facilities. Ten of these stores are operational, generating nearly $78 million in sales this year. Additionally, the company’s iconic brands, such as Dime Bag, Fuzzies, Harborside Farms, Kingpen, and Loudpack, are carried in over 900 retail outlets across California.

Green Life CEO, Drew Mathews, expressed the sale’s significance in a phone interview with MJBizDaily, stating, “To my knowledge, it’s the largest receivership deal in U.S. (cannabis) history.” He added that the portfolio’s combined sales exceed $120 million and noted the preference for a global offer encompassing all assets. The San Diego brokerage expects the bidding process to conclude on January 15, 2024.

StateHouse’s financial troubles began when its primary lender, Pelorus Fund REIT, filed for receivership after the company defaulted on four loans, with debts exceeding $140 million. This prompted the halting of StateHouse’s stock trading on both the Canadian Securities Exchange (STHZ) and U.S. over-the-counter markets (STHZF).

This sale marks a significant chapter for StateHouse, which was once a pioneering cannabis operator in California under its Harborside branding. The receivership is managed by Kevin Singer, who has overseen similar high-profile cannabis dissolutions, including the collapse of California distribution giant Herbl and the receivership auction of High Times. 

#3: Simply Solventless

Simply Solventless Concentrates Ltd. (TSXV: HASH) (“SSC”), a leader in the cannabis concentrates market, announced record-breaking Q3 2024 financial results, significantly exceeding prior guidance. Gross revenue soared to $7.2 million, up 70% from Q2 2024, while adjusted EBITDA climbed 5% to $1.0 million. Normalized net income (NNI) reached $0.9 million, marking an annualized NNI of $0.06 per share.

A significant contributor to SSC’s success was the integration of CannMart Inc., which was acquired in September 2024. During the quarter, the company also finalized its acquisition of ANC Inc. in October, with its financial impact anticipated in Q4 2024 results. President and CEO of SSC, Jeff Swainson, emphasized the significance of these milestones, stating, “Q3 2024 was another transformational quarter for SSC. We’ve profitably grown annualized revenue by 309% in just three quarters, and we’re poised for even greater success with the integration of both CannMart and ANC.”

Additionally, in a bold move, SSC exercised its right to accelerate the expiry of 8 million common share purchase warrants, which were priced at $0.40 each. According to the company, this decision is expected to generate $3.2 million in proceeds, which will support working capital needs and fund outstanding payments related to the ANC acquisition. These warrants, which were originally set to expire on July 17, 2026, will now expire on December 21, 2024, if unexercised.

With a strong foundation laid in Q3, SSC is optimistic about its Q4 performance. Swainson concluded, “We will soon issue guidance for Q4 2024, where we expect to deliver another exceptional quarter. Our growth strategy is proving successful, and we remain committed to driving shareholder value”.

#4: Decibel

Decibel Cannabis Company Inc. (TSXV: DB) (OTC: DBCCF), a leading producer of premium cannabis products, released its unaudited financial results for Q3 2024, highlighting both challenges and progress. The company reported a 9% sequential increase in net revenue for Q3 2024, reaching $24.1 million. However, year-over-year revenue decreased by 12%, a decrease that was attributed mainly to heightened competition in the infused pre-roll segment, a shift in consumer preferences toward larger vape cartridges, and the suspension of exports to Israel as the company transitioned to a new distribution partner.

Decibel CEO, Benjamin Sze, expressed optimism, stating, “We’ve reduced liabilities by approximately $5 million this quarter, strengthening our balance sheet. While domestic Canadian recreational sales remain our focus, the integration of AgMedica and international demand for Decibel flower signal growth opportunities.”

The third quarter also saw a significant improvement in the gross margin, which increased to 53%, up from 44% in the same period last year. Adjusted EBITDA stood at $5.1 million, showing a 31% sequential growth from Q2 2024, although it experienced a 21% year-over-year decline. Despite this, Decibel posted positive free cash flow of $1.8 million, a 75% increase over the previous year, and an adjusted net income of $2.1 million, marking a 294% improvement.

While Decibel’s net Canadian recreational sales dropped to $23.8 million in Q3 2024, compared to $27 million in Q3 2023, the company remains optimistic about its future prospects. The company stated that it is focusing on new product launches, including large format 510 cartridges and disposables, to regain market share. On a global scale, international sales totaled $309,000 for the quarter, a decline from $500,000 in Q3 2023.

Despite these challenges, Decibel reaffirmed that it continues to operate within its financial covenants and expects to maintain compliance throughout its 12-month forecast period. The company also appointed a new corporate secretary to strengthen its executive team. 

Top Psychedelic Company for Week

#1: Psyence Biomedical

Psyence Biomedical Ltd. (NASDAQ: PBM) this week announced the effective date for its previously approved 1-for-75 share consolidation, a strategic move aimed at meeting Nasdaq’s minimum bid price requirement for continued listing. The consolidation, which is set to take effect on November 26, 2024, follows shareholder approval at the company’s Annual General and Special Meeting on November 12.

The share consolidation will reduce the number of outstanding shares, with every 75 existing shares combined into a single share. This move is critical for Psyence to comply with Nasdaq Listing Rule 5450(a)(1), which mandates a minimum bid price of $1 for continued trading on The Nasdaq Global Market. The company’s shares will continue to trade under the ticker ‘PBM’, and the new CUSIP number will be 74449F209.

“As part of our ongoing efforts to maintain our listing status on Nasdaq, we are implementing this consolidation,” said Psyence Biomedical. The consolidation will also adjust the exercise price of outstanding warrants, while fractional shares will be rounded to the nearest whole share.

#2: Awakn

Awakn Life Sciences Corp. (CSE: AWKN) (OTC: AWKNF), a clinical-stage biotechnology company, is making strides in addressing unmet needs in mental health and addiction treatment. Through the development of novel therapies and medications, Awakn aims to redefine the standard of care for conditions like Alcohol Use Disorder (AUD) and trauma-related mental health disorders.

Awakn’s latest advancements focus on aminoindanes, a class of molecules with pharmacological properties similar to MDMA. These compounds stimulate serotonin, dopamine, and noradrenaline release while blocking reuptake, creating empathogenic effects essential for trauma therapy. But unlike MDMA, aminoindanes offer a patentable, targeted approach to treating trauma-related mental health disorders.

Additionally, Awakn is developing Medication-Assisted Treatments (MATs) targeting the brain circuits that drive addiction. By disrupting the neural pathways that fuel addictive behaviors, these therapies enable patients to break free from destructive cycles and engage in psychotherapy for lasting recovery.

Moreover, Awakn is also currently conducting trials for its widely known AUD-focused therapies, including a key Phase 3 study for AWKN-001. This trial, which is supported by the UK’s Medical Research Council (MRC) and other leading institutions, combines ketamine-based medication with manualized psycho-social support. The trial spans across multiple NHS sites, reflecting the scalability and the potential impact of Awakn’s approach.

Awakn CEO Anthony Tennyson and Chief Research Officer Prof. David Nutt lead the charge with a commitment to transforming care standards. Through strategic partnerships and clinical advancements, Awakn aims to deliver life-changing solutions to millions in desperate need.

Key Takeaways; Cannabis Sector

• Agrify announced $20 million financing and leadership changes in partnership with Green Thumb Industries
• TerrAscend reported revenue drop and expanded into Ohio with $10.3 million dispensary acquisition
• Curaleaf reported $44 million loss in Q3, despite securing a $40 million credit line to support growth
• Canopy Growth reported revenue drop and continued losses
• Cresco Labs delivered record cash flow despite missing revenue estimates.

Key Takeaways; Psychedelic Sector

• Relmada Therapeutics reported Q3 financial results and outlined key milestones by year-end
• Awakn expanded phase 3 trial sites for alcohol use disorder

Below is a weekly roundup of what happened this week in the cannabis and psychedelic sectors. In this ever-evolving landscape, we explore the major developments and groundbreaking initiatives happening among companies operating in these industries; from advancements in medical research, therapeutic applications to shifts in legal frameworks and current market trends.

Top Marijuana Companies for Week

#1: Agrify

Agrify Corporation (NASDAQ: AGFY), a Michigan-based leader in cannabis cultivation and extraction solutions, recently announced a $20 million financing agreement and significant changes in its leadership team. As part of the agreement, Green Thumb Industries Inc. (GTI) (CSE: GTII) (OTC: GTBIF), through a subsidiary, will provide $10 million-upfront as part of a convertible secured note totaling $20 million. This move supports Agrify’s ongoing financial stability as it navigates a new growth phase.

In addition to the financial boost, Agrify’s Chair and CEO Raymond Chang resigned, and board member I-Tseng Jenny Chan also stepped down. Green Thumb’s Founder, Chairman, and CEO, Benjamin Kovler, has taken on the role of interim CEO and Chair of Agrify. Kovler will continue leading Green Thumb while helping to guide Agrify through this transitional period.

Reflecting on the investment, Kovler stated, “Given Green Thumb’s thoughtful and prudent approach to capital allocation, we see significant opportunity ahead to assist in creating value for shareholders via Agrify’s non-plant-touching assets.” Joining him on the Agrify board are Green Thumb’s Armon Vakili, VP of Strategic Initiatives & Partnerships, and veteran corporate leader Richard Drexler, who brings over 40 years of experience to the role.

This transition came as GTI celebrated its own success this week, reporting $287 million in revenue and an adjusted EBITDA of $89 million in what was a strong Q3 financial results for the company. Kovler highlighted on the results, “This strong quarter reflects our commitment to building enduring brands that resonate with American consumers.”  

#2: TerrAscend

TerrAscend Corp. (TSX: TSND) (OTC: TSNDF), a cannabis retailer and multistate operator, this week reported disappointing third-quarter financial results, along with plans to expand into Ohio through a $10.3 million acquisition of Ratio Cannabis LLC. The acquisition of Ratio Cannabis, a dispensary in Goshen Township, will add to TerrAscend’s retail footprint, bringing its U.S. dispensary count to 38 across six states. The transaction included $5 million in cash, $1.3 million in company shares, and a $3.9 million seller’s note with 6% interest.

Regarding financial results, TerrAscend reported a challenging third quarter, with revenue falling to $74.2 million, below analysts’ estimates of $76.66 million and down from $89.2 million in the same quarter last year. Net losses widened to $21.4 million, reflecting a 14.1% year-over-year revenue decline. Nevertheless, the company maintained positive cash flow for the ninth consecutive quarter, generating $1.8 million from operations.

Despite facing revenue pressures in the third-quarter, TerrAscend launched a $10 million share buyback program and secured $140 million in financing due in 2028, carrying a 12.75% interest rate. The company also reported gains in Maryland’s wholesale market, achieving a 26% growth over the previous quarter. As a result of these mixed financial results, TerrAscend’s stock dropped 21% following the earnings release, closing at $0.79 on OTCQX and C$1.10 in Toronto.

#3: Curaleaf

Curaleaf Holdings, Inc. (TSX: CURA) (OTC: CURLF), a leading multistate cannabis operator, reported it’s third-quarter financial result, recording a net loss of $44 million, bringing its total losses for the year to $144 million despite generating over $1 billion in revenue. The company’s Q3 revenue of $331 million showed a slight 1% decrease from the previous year, missing analyst expectations of $343 million. CEO Boris Jordan attributed the disappointing results to “the pressures of regulatory overhang, increased competition, unprecedented weather conditions, and irrational pricing strategies.”

Despite these challenges, Jordan remains optimistic about the company’s future. “We remain focused on sustainable, profitable organic growth by maintaining share in challenged markets and growing share where we see strategic opportunity,” he said. “Our global presence offers a diversification of revenue streams that mitigates concentration risk.”

In addition to its financial results, Curaleaf also announced this week that it had secured a $40 million revolving credit facility from Needham Bank in Massachusetts to support corporate operations and working capital. “This new revolving credit facility will provide us with the flexibility to support business needs across the globe,” Jordan said. The two-year credit facility, which matures in December 2026.

The company has also continued to expand its footprint, opening new dispensaries in states such as New York, Ohio, and Florida, and growing its international operations, which increased by 82% year-over-year. Curaleaf’s international division now contributes significantly to its diversified revenue stream, with Jordan highlighting that the company “opened new dispensaries in key markets and launched its first marijuana flower product in Germany.”

As for the future outlook, Curaleaf remains optimistic about its ability to weather challenges and expand in both domestic and international markets, aiming to position itself for growth as the cannabis industry evolves.

#4: Canopy Growth

Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) announced its fiscal Q2 2025 financial results, revealing a decline in revenue and continued losses. For the quarter ending September 30, 2024, total revenue dropped to C$73.9 million (~$53 million), down from C$82 million in the same period last year. However, the company noted a 3% revenue increase when excluding businesses divested in the prior fiscal year.

Despite the ongoing losses, Canopy reported a net loss of C$128 million, an improvement from last year’s C$324 million. CEO David Klein expressed confidence, saying, “We delivered a solid second quarter led by strong growth across our Storz & Bickel, Canadian medical, and European cannabis businesses… We remain highly optimistic about the momentum building within Canopy USA as this strategy was uniquely designed to succeed independent of the need for federal legalization.”

Operating losses from continuing operations were C$46 million, significantly higher than last year’s C$7 million. This increase was due in part to rising operating expenses, which reached C$67 million compared to C$30 million the previous year. However, the company remains optimistic about reaching positive Adjusted EBITDA in the coming quarters.

Despite operational challenges, CFO Judy Hond highlighted progress, stating, “We’ve demonstrated another quarter of progress towards profitability driven by improvement in gross margins and a reduction in SG&A expenses.”

#5: Cresco Labs

Cresco Labs Inc. (CSE: CL) (OTC: CRLBF), the Chicago-based owner of Sunnyside dispensaries, reported its highest-ever quarterly cash flow in Q3 2024 financial results, despite falling short of revenue expectations. For the quarter ending September 30, the company posted $180 million in revenue, down from $190.6 million in the same period last year, and below the $185.85 million analysts had predicted. However, Cresco’s operating cash flow hit a record $49 million, bolstered by its efforts to optimize operations and reduce costs.

CEO Charlie Bachtell remarked, “So far this year, we’ve generated $103 million in operating cash flow, enabling us to reinvest in our core, and to explore new markets and growth verticals, all while improving our balance sheet and paying down debt.”

Despite this positive cash flow, CFO Dennis Olis forecasted a mid-single-digit revenue drop in Q4, driven by market challenges in Illinois and slow adult-use conversion in Ohio. Olis pointed out that Illinois, despite increasing the number of dispensaries by 46% in the state, the company saw total state revenue decline. In Ohio, Bachtell noted that the adult-use market has yet to launch, stating, “Internally we stopped referring to Ohio’s adult-use launch because it really hasn’t launched yet.”

Despite these challenges, Cresco expanded its market presence, remaining a leader in Illinois, Pennsylvania, and Massachusetts, and climbing into the top three in Ohio. The company also reduced its loss to $8 million from a much steeper $113.4 million last year, while the adjusted EBITDA grew 5% to $51 million.

Moreover, Cresco’s strong cash position, which stood at $157 million at quarter’s end, enabled it to repurchase $40 million of senior loans without penalties in October. Bachtell also highlighted Cresco’s advantage in Florida’s vertically integrated medical market, despite setbacks in adult-use legalization in the state.

Looking ahead, Bachtell expressed optimism about federal cannabis reform, pointing to growing bipartisan support for policy changes: “We look forward to working with the incoming administration to follow through on its commitment to developing a commonsense approach to cannabis laws.”

Top Psychedelic Company for Week

#1: Relmada Therapeutics

Relmada Therapeutics, Inc. (NASDAQ: RLMD) recently provided a business update and announced its third-quarter financial results for 2024. Despite reporting a net loss of $21.7 million, slightly improving from the $22 million loss during the same period in 2023, the company remains optimistic about its near-term goals and the potential of its clinical programs.

“We believe that Relmada’s clinical programs are poised to achieve meaningful, near-term value inflection points,” said Sergio Traversa, CEO of Relmada. “Our lead product candidate, REL-1017, is in a registrational Phase 3 program as a potential adjunct treatment for major depressive disorder.” 

The company’s Reliance II and Relight trials are designed to build on promising Phase 2 results, with enhanced site selection and more stringent patient enrollment. The interim analysis for Reliance II, which is expected by the end of 2024, is seen as a crucial de-risking event for both the REL-1017 program and the company.

In addition to REL-1017’s progress, Relmada reported that it is also moving forward with the development of REL-P11, a low-dose, modified-release psilocybin formulation aimed at treating metabolic diseases. “We expect to initiate a Phase 1 safety study for REL-P11 shortly,” Traversa said. “This study will define the pharmacokinetic, safety, and tolerability profile in obese subjects. A Phase 2a proof-of-concept study is expected to begin in the first half of 2025.”

For the third quarter of 2024, Relmada reported research and development expenses of $11.1 million, up from $10.4 million in the same period in 2023. This increase was largely due to the ramp-up of clinical studies, including the Reliance II/302 and Relight/304 trials. General and administrative expenses decreased slightly to $11.9 million, primarily driven by reduced stock-based compensation expenses. Additionally, the company posted a net loss of $21.7 million, or $0.72 per share, compared to a net loss of $22.0 million, or $0.73 per share, for the third quarter of 2023.

As of September 30, 2024, Relmada held $54.1 million in cash and short-term investments, a significant decrease from $96.3 million at the end of 2023. The company believes this cash position is sufficient to support its operations through key milestones in 2025.

“We are confident in our ability to reach critical milestones over the next year,” Traversa concluded, highlighting that the company’s focus remains on advancing its clinical programs and achieving regulatory success.

#2: Awakn

Awakn Life Sciences Corp. (CSE: AWKN) (OTC: AWKNF), recently announced the opening of four additional clinical trial sites in the UK as part of its groundbreaking ‘MORE-KARE’ Phase 3 trial for AWKN-001, a novel treatment for severe alcohol use disorder (AUD). The newly added sites include University Hospitals Sussex NHS Foundation Trust, South London and Maudsley NHS Foundation Trust, Greater Manchester Mental Health NHS Foundation Trust, and University Hospitals Plymouth NHS Trust, increasing the total to seven active sites.

AWKN-001 combines an N-methyl-D-aspartate receptor-modulating drug (ketamine) administered intravenously with manualized psycho-social support to create a comprehensive treatment for severe AUD. This trial is co-funded by the UK’s Medical Research Council (MRC), the National Institute for Health and Care Research (NIHR), and Awakn Life Sciences, managed by the Exeter Clinical Trials Unit at the University of Exeter.

Commenting on this expansion, Awakn CEO Anthony Tennyson remarked, “The expansion of trial sites marks a significant milestone in our mission to address the pressing need for innovative treatments for AUD. We are confident that AWKN-001 has the potential to change the standard of care for individuals suffering from severe alcohol use disorder in the UK, offering them a novel, more effective treatment pathway.”

Furthermore, Awakn’s Chief Research Officer, Prof. David Nutt, added, “The opening of these additional sites accelerates our ability to gather robust clinical data, essential for bringing this groundbreaking treatment to more patients. With the support of the UK’s leading research institutions, we are well-positioned to demonstrate the effectiveness of AWKN-001.”

The MORE-KARE study represents the largest investigation into ketamine-assisted therapy for AUD, with an estimated total trial cost of £2.4 million (CAD 4.2 million). As part of the deal, Awakn is contributing £0.8 million (CAD 1.4 million) to this vital research effort across eight NHS sites.

Key Takeaways; Cannabis Sector

• Chicago Atlantic REIT secured a $50 million loan to fund new marijuana investments
• Canopy Growth reduced loan term by $100 million to strengthen financial position
• RIV Capital reported doubling revenue, and strong synergy gains ahead of Cansortium merger

Key Takeaways; Psychedelic Sector

• Awakn expanded phase 3 trial sites for alcohol use disorder
• MIRA Pharmaceuticals announced breakthrough with ketamine-based pain treatment

Below is a weekly roundup of what happened this week in the cannabis and psychedelic sectors. In this ever-evolving landscape, we explore the major developments and groundbreaking initiatives happening among companies operating in these industries; from advancements in medical research, therapeutic applications to shifts in legal frameworks and current market trends.

Top Marijuana Companies for Week

#1: Chicago Atlantic

Chicago Atlantic Real Estate Finance, Inc. (NASDAQ: REFI), a cannabis-focused lender and commercial mortgage real estate investment trust, recently secured a $50 million unsecured term loan with a fixed 9% interest rate, maturing in October 2028. This loan, which included a 1.50% upfront fee, allows for prepayment with penalties of 3% in the first year and 2% in the second year. According to the company, the funds will be used to repay existing borrowings on its $110 million revolving credit facility and for general working capital.

This loan marked a significant step in Chicago Atlantic’s ongoing efforts to expand its investments in the cannabis sector. The company has been actively deploying capital, such as a recent $20 million loan to Massachusetts-based Nova Farms and funding for dispensary buildouts in New York’s social equity program. 

The firm’s CEO, Peter Sack, highlighted the loan as an example of the company’s ability to source accretive financing that enhances liquidity for pursuing additional opportunities. “This unsecured note is the latest example of our ability to source accretive financing that further enhances our operational liquidity to pursue additional opportunities within our active originations pipeline,” Sack said in a statement.

In conjunction with this loan, Chicago Atlantic received its first credit rating from Egan-Jones, which assigned a BBB+ rating to both the company and the loan, indicating a solid ability to repay despite potential sensitivity to evolving credit conditions.

Since its inception, Chicago Atlantic has deployed over $2.2 billion in credit and equity investments, demonstrating its commitment to supporting the growth and development of the cannabis industry.

#2: Canopy Growth

Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC), a leading Canadian cannabis operator, made a strategic move to improve its financial standing by reducing a loan term by $100 million (approximately CAD 138.5 million). This prepayment allowed the company to decrease its debt at a discounted rate of $97.5 million, resulting in annual interest savings of around $14 million.

The company’s Chief Financial Officer, Judy Hong, emphasized that this early repayment demonstrates Canopy Growth’s commitment to minimizing cash burn and enhancing its capital structure. “Our proactive steps to reduce debt and extend maturity enhance our balance sheet flexibility to invest in growth areas and drive long-term value creation for our shareholders,” Hong said in a statement.

As part of the loan amendment, the maturity date was extended to December 18, 2026, with an option for an additional prepayment of $100 million at the same discounted price by March 31, 2025. If executed, this would further extend the loan’s maturity to September 19, 2027.

Canopy has been strategically working to strengthen its position in the cannabis market. In June, the company announced plans to acquire Acreage Holdings, Inc. (OTC:ACRHF) (OTC:ACRDF), a multistate marijuana operator, with the deal expected to close in the first half of 2025. This acquisition is a key part of Canopy’s strategy to expand its footprint in the U.S. cannabis sector. Shortly after this announcement, Canopy revealed plans to raise up to $250 million through an at-the-market equity program, issuing new common shares in public offerings across both the U.S. and Canada, potentially to facilitate this acquisition.

#3: RIV Capital

RIV Capital Inc. (CSE: RIV) (OTC: CNPOF) recently announced an operational update highlighting the Company’s recent achievements. The company reported substantial revenue growth and strategic achievements as it prepares for its upcoming merger with Cansortium Inc. (CSE: TIUM.U) (OTC: CNTMF), which is also known as Fluent. The business combination is set to close in Q4 2024. 

RIV Capital, which operates under its Etain brand, has capitalized on New York’s cannabis market by offering both medical and adult-use products in its three co-located stores, with the latest store opening in Manhattan this October. 

During the operational update highlight, the company disclosed that its net revenue for 2024 (as of October 23) had doubled compared to the same period in 2023. In 2023, the company’s revenue from medical-only sales was $3.7 million over six months and $5.8 million over nine months ending in December. According to the company, its introduction of adult-use sales in February 2024 drove the significant revenue increase. In addition to its retail expansion, RIV Capital stated that it had broadened its wholesale business, serving over 50 customers, and has seen increased demand for premium bulk flower sales to prominent New York brands. 

Dave Vautrin, Chief Retail Officer and Interim CEO, highlighted Q3 2024 as a pivotal quarter marked by record-setting revenue and a growing wholesale business. He emphasized that these achievements set the stage for a strong finish in 2024 and smooth integration with Cansortium after the business combin ation closes. The companies recently launched a joint product line called “Moods,” which they have begun wholesaling in the state.

RIV Capital’s momentum is expected to persist, driven by its optimized retail operations and increasing wholesale activities, positioning the company for future growth in New York’s expanding cannabis market.

Top Psychedelic Company for Week

#1: Awakn

Awakn Life Sciences Corp. (CSE: AWKN) (OTC: AWKNF), recently announced the opening of four additional clinical trial sites in the UK as part of its groundbreaking ‘MORE-KARE’ Phase 3 trial for AWKN-001, a novel treatment for severe alcohol use disorder (AUD). The newly added sites include University Hospitals Sussex NHS Foundation Trust, South London and Maudsley NHS Foundation Trust, Greater Manchester Mental Health NHS Foundation Trust, and University Hospitals Plymouth NHS Trust, increasing the total to seven active sites.

AWKN-001 combines an N-methyl-D-aspartate receptor-modulating drug (ketamine) administered intravenously with manualized psycho-social support to create a comprehensive treatment for severe AUD. This trial is co-funded by the UK’s Medical Research Council (MRC), the National Institute for Health and Care Research (NIHR), and Awakn Life Sciences, managed by the Exeter Clinical Trials Unit at the University of Exeter.

Commenting on this expansion, Awakn CEO Anthony Tennyson remarked, “The expansion of trial sites marks a significant milestone in our mission to address the pressing need for innovative treatments for AUD. We are confident that AWKN-001 has the potential to change the standard of care for individuals suffering from severe alcohol use disorder in the UK, offering them a novel, more effective treatment pathway.”

Furthermore, Awakn’s Chief Research Officer, Prof. David Nutt, added, “The opening of these additional sites accelerates our ability to gather robust clinical data, essential for bringing this groundbreaking treatment to more patients. With the support of the UK’s leading research institutions, we are well-positioned to demonstrate the effectiveness of AWKN-001.”

The MORE-KARE study represents the largest investigation into ketamine-assisted therapy for AUD, with an estimated total trial cost of £2.4 million (CAD 4.2 million). As part of the deal, Awakn is contributing £0.8 million (CAD 1.4 million) to this vital research effort across eight NHS sites.

#2: MIRA Pharmaceuticals

MIRA Pharmaceuticals, Inc. (NASDAQ: MIRA) announced promising results for its experimental ketamine-based drug, Ketamir-2, which according to the company, “outperformed” existing pain treatments in preclinical studies. The Miami-based firm reported that Ketamir-2 showed up to 112% greater effectiveness compared to pregabalin (Lyrica) and 70% more relief than gabapentin (Neurontin) at higher doses. This follows earlier findings where the drug achieved complete reversal of neuropathic pain in animal models.

MIRA CEO, Erez Aminov, commented on this deal saying, “Ketamir-2, a non-opioid, offers tremendous promise for patients seeking better solutions for neuropathic pain without the habit-forming risks or debilitating side effects associated with existing medications.” MIRA’s research suggests that Ketamir-2’s unique properties allow for better absorption in the brain, potentially making it a safer and more effective treatment compared to traditional ketamine.

The drug’s development is timely, as MIRA faces financial challenges, reporting $1.9 million in operating costs in the first half of 2024, leaving $2.8 million in cash reserves. To fund its efforts, MIRA initiated an offering to sell up to $19.3 million in common stock. The company is targeting a rapidly growing neuropathic pain market projected to reach $5.2 billion by 2030, with gabapentin alone expected to generate nearly $5 billion by 2033.

MIRA also plans to submit an Investigational New Drug application to the FDA by December, with human trials set to commence in early 2025. In addition to pain management, MIRA is exploring Ketamir-2 for potential applications in treating post-traumatic stress disorder (PTSD) and other neuropsychiatric conditions.

Key Takeaways; Cannabis Sector

• Ascend Wellness and Curaleaf fined $165,000 by Massachusetts cannabis regulators for safety violations.
• StateHouse Holdings filed for bankruptcy in Canada amid financial troubles.
• Tilray’s revenue declined in Q1 despite improved net losses and profitability.
• Canopy Growth completed the acquisition of Wana Brands after three-year wait.

Key Takeaways; Psychedelic Sector

• Awakn partnered with Eurofins Discovery for pre-clinical testing of new drug entities 

Below is a weekly roundup of what happened this week in the cannabis and psychedelic sectors. In this ever-evolving landscape, we explore the major developments and groundbreaking initiatives happening among companies operating in these industries; from advancements in medical research, therapeutic applications to shifts in legal frameworks and current market trends.

Top Marijuana Companies for Week

#1: Ascend Wellness and Curaleaf

Massachusetts cannabis regulators fined two major multistate marijuana operators, Ascend Wellness Holdings, Inc. (CSE: AAWH-U.CN) (OTC: AAWH) and Curaleaf Holdings, Inc. (TSX: CURA) (OTC: CURLF), a combined $165,000 for violations related to consumer safety and product contamination.

The Massachusetts Cannabis Control Commission (CCC) imposed an $85,000 fine on New York-based Ascend Wellness. The penalty was due to the company’s failure to properly track approximately 900 marijuana products as required by the state’s track-and-trace system. The violations, some of which date back to 2021, also included failure to seal gaps in doors and ducts, as well as workplace deficiencies that contributed to at least three contaminated cannabis samples.

Curaleaf Holdings, another major player in the cannabis industry, was also fined $80,000 for systemic failures related to contamination prevention at its Amesbury and Webster cultivation sites. According to the CCC, Curaleaf’s facilities did not implement adequate measures to prevent pesticide contamination, which is essential for ensuring product safety and consumer health.

These penalties highlight the ongoing scrutiny of cannabis businesses in Massachusetts as regulators work to enforce strict safety and compliance standards. The CCC’s actions are part of broader efforts to ensure consumer safety in the state’s rapidly growing marijuana market. 

#2: StateHouse Holding

San Diego-based cannabis operator StateHouse Holdings Inc. (CSE: STHZ) (OTC: STHZF) officially filed for bankruptcy in Canada and entered receivership in the United States following financial struggles and defaulting on loans. The vertically integrated cannabis company, which operates 11 dispensaries across California, made the Canadian filing under the Bankruptcy and Insolvency Act after months of financial distress. 

The move comes less than a month after its largest lender, Pelorus Fund REIT, initiated receivership proceedings in the U.S., seeking court-appointed management of StateHouse’s assets after the company defaulted on four loans. Pelorus filed the receivership complaint in September, citing StateHouse’s inability to meet its financial obligations.

StateHouse, previously known as Harborside, was a pioneering name in the cannabis industry, dating back to 2006 when it was among the first to receive a medical marijuana license in the U.S. However, a series of acquisitions and management changes in late 2020 contributed to its financial downfall, as noted by the company’s founders, Steve and Andrew DeAngelo. The DeAngelo brothers, who were forced out in what they describe as “a hostile takeover”, have expressed interest in potentially repurchasing the company.

As part of the bankruptcy process, StateHouse’s shares were halted on the Canadian Securities Exchange, and the company anticipates being delisted soon.

StateHouse now joins a growing list of other prominent cannabis companies that have sought similar legal protection, including Herbl, Skymint, and MedMen Enterprises Inc. (OTC: MMNFQ), which declared bankruptcy in Canada and entered receivership in US earlier this year.

#3: Tilray Brands

Tilray Brands, Inc. (NASDAQ: TLRY) (TSX: TLRY) reported its financial results for the first quarter ending August 31, 2024, highlighting mixed performance. The company’s revenue increased by 13% year-over-year to $200 million, up from $177 million in the same period last year. However, this marked a sharp decline from the previous quarter’s revenue of $229.9 million, and it missed the Yahoo Finance average analyst estimates of $219 million.

On a brighter note, Tilray’s net loss improved significantly, shrinking by 38% to $(34.7) million, compared to $(55.9) million in the prior year. The net loss per share also improved to $(0.04) from last year’s $(0.10), matching Yahoo Finance analyst estimates.

Breaking down the revenue by sector, cannabis sales dropped to $61.2 million from $71.9 million in Q4, while beverage sales fell to $55.9 million from $76.7 million. Distribution sales grew slightly to $68 million from $65.6 million, and wellness sales fell to $14.7 million from $15.7 million.

Despite reporting a gross profit of $59.7 million (a 35% increase year over year), Tilray missed analysts’ gross profit expectations of $64 million. EBITDA also fell short at $9.3 million, below the $11.9 million estimate.

Speaking about Tilray’s financial results, Chairman and CEO, Irwin D. Simon, emphasized the company’s commitment to future growth, saying, “Our investments in the cannabis, wellness, beverage, and distribution industries are focused on shaping the future and staying ahead of the curve.” He also expressed optimism about upcoming regulatory changes, stating, “We believe that there is a greater likelihood that the upcoming U.S. Presidential elections will result in improved regulatory changes in the cannabis industry.” Simon added that both presidential candidates support further cannabis legalization, which could open new opportunities for the industry

#4: Canopy Growth

Ontario-based Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) announced that it had finalized its $279 million acquisition of U.S. cannabis edibles company Wana Brands, nearly three years after the deal was first announced. The acquisition, which was made through Canopy USA, a subsidiary that was specifically designed to help the company enter the U.S. market, gives Canopy full ownership of Wana Wellness LLC, The CIMA Group LLC, and Mountain High Products LLC, which are all under the Wana Brands umbrella.

Wana Brands, which is known for its cannabis edibles, recently ventured into the hemp-based edibles market through its new line, Wanderous, adding further flexibility to Canopy USA’s product offerings.

The completion of this strategic acquisition marked a significant step in Canopy’s expansion into the U.S. cannabis market, as the company aims to solidify its position with a diverse portfolio of top-tier brands. Canopy USA has been actively acquiring other key players in the industry, including a 75% stake in California-based Jetty. The company is also pursuing the acquisition of Acreage Holdings, Inc. (OTC:ACRHF) (OTC:ACRDF), a multistate operator in New York, with the deal expected to close in 2025.

Despite these acquisitions, Canopy continues to face financial challenges, reporting a net loss of C$127 million in Q2 2024, following a C$129 million loss in first quarter. 

Top Psychedelic Company for Week

#1: Awakn

Awakn Life Sciences Corp. (CSE: AWKN) (OTC: AWKNF), a biotechnology company focused on therapeutics for substance use and mental health disorders, announced that it had selected Eurofins Discovery to conduct pharmacology testing for its co-lead aminoindane series. This is part of Awakn’s New Chemical Entity (NCE) pre-clinical program aimed at developing advanced treatments for addiction, particularly Alcohol Use Disorder (AUD), as well as mental health conditions like PTSD. 

Eurofins Discovery, which is a leader in drug discovery research, will play a key role in advancing the pre-clinical phase of Awakn’s research. The NCE program is being co-developed with Graft Polymer (UK) Plc and focuses on creating therapeutics for trauma-related disorders, including PTSD, which affects millions in the US, UK, and Europe.

The collaboration marked a significant milestone in Awakn’s mission to provide innovative solutions for addiction and mental health. The company’s management team emphasized that this partnership would help accelerate the development of groundbreaking treatments. 

Commenting on this deal, Prof. David Nutt, Awakn’s Chief Research Officer, stated, “The selection of Eurofins Discovery for this crucial stage of pharmacology testing is a significant step forward in our pre-clinical program. We are confident that this collaboration will accelerate our path to delivering groundbreaking treatments for mental health and addiction disorders.”

Additionally, the company’s CEO Anthony Tennyson also commented, saying, “Our partnership with Eurofins Discovery is a testament to the progress we’re making in developing innovative solutions for AUD and other mental health challenges. We are excited about the potential impact our NCE program could have for patients in need across North America and beyond.”

Key Takeaways; Cannabis Sector

• Bright Green shares were suspended from Nasdaq trading.
• Ayr Wellness CEO resigned amid surprising leadership changes.
• Green Thumb announced $50 million share buyback program.
• Flora Growth partnered with Blossom Genetics to supply medical marijuana to Germany.
• High Tide reported strong Q3 results, with revenue exceeding C$131 million.

Key Takeaways; Psychedelic Sector

• Psyence Biomed announced the acquisition of Clairvoyant Therapeutics to enhance psilocybin development.
• Awakn upsized its private placement financing to $2 million and closed the fourth tranche.

Below is a weekly roundup of what happened this week in the cannabis and psychedelic sectors. In this ever-evolving landscape, we explore the major developments and groundbreaking initiatives happening among companies operating in these industries; from advancements in medical research, therapeutic applications to shifts in legal frameworks and current market trends.

Top Marijuana Companies for Week

#1: Bright Green

Bright Green Corporation (NASDAQ: BGXX), a New Mexico-based cannabis cultivator and the first plant-touching marijuana company to trade on a major U.S. stock exchange, recently announced that its shares had been suspended from trading on the Nasdaq. This decision followed the cancellation of the company’s Sept. 26 appeal hearing regarding its potential delisting.

Despite this setback, Bright Green said in a press release that it remains determined to continue its strategic pursuits. The company announced that it will still hold its annual shareholder meeting as scheduled on November 15, during which it plans to discuss key issue, including the possibility of a reverse stock split to enhance shareholder value, and hopefully regain compliance with the Nasdaq listing requirements.

Commenting on the suspension’s news, Bright Green CEO, Groovy Singh, said, “We are evaluating all options available to us, including strategic partnerships and acquisitions as we continue to build on our foundation and explore opportunities for sustainable financing and growth.”

Additionally, Bright Green also reported in the press release that it had secured a $2.5 million line of credit, which Chairwoman Lynn Stockwell said will provide the company with the flexibility needed to navigate current challenges while investing in opportunities for long-term growth.

Since being listed on Nasdaq on May 17, 2022, Bright Green’s stock initially surged, climbing from $8 to $58 per share, resulting in a market value exceeding $9 billion. However, the stock has since plummeted, hitting a 52-week low of $0.15, and has declined by nearly 60% over the past year.

Despite the challenges, Bright Green reaffirmed that it remains committed to its growth trajectory, exploring strategic options and focusing on sustainable financing to support future expansion.

#2: Ayr Wellness

In a sudden announcement that caught investors off guard, AYR Wellness Inc. (CSE: AYR-A) (OTC: AYRWF) announced that CEO David Goubert had stepped down from his role. Goubert, who became President in October 2022 and CEO in February 2023, stepped down just months into his role. 

As a result, Ayr announced that the company’s Board of Directors had appointed Steven M. Cohen as Interim CEO while they search for a permanent replacement. Cohen, who’s a founding member of Blue Raven LLP, has an extensive legal background providing strategic legal advice to businesses and corporate boards, but lacks experience in the cannabis industry.

The unexpected leadership change raised eyebrows, with many speculating about the reasons behind Goubert’s abrupt departure. Goubert was perceived as having implemented positive changes within the company in a short time frame. The late-night press release, coupled with the absence of a clear succession plan, further fueled speculation. 

His departure followed that of Jonathan Sandelman, Ayr’s founder, who resigned as executive chair in July.

The company recently reported slight revenue declines, with second-quarter earnings falling 0.6% to $117.3 million, while net losses grew to $38 million, up from $29 million the previous year. Despite reducing expenses, the company cited higher taxes and interest costs as reasons for the increased losses. Goubert had remained optimistic about the company’s future, highlighting opportunities in Ohio and potential growth in states like Florida and Pennsylvania.

Ayr Wellness now faces the challenge of finding a permanent CEO while navigating recent financial setbacks. The company’s board stated that they will conduct a search for a suitable successor in the near future.

#3: Green Thumb

Green Thumb Industries Inc. (CSE: GTII) (OTC: GTBIF), a Chicago-based cannabis multistate operator, recently announced plans to launch a $50 million share buyback program. The program allows the company to repurchase up to 10,573,860 shares between September 23, 2024, and September 22, 2025.

This announcement followed a successful previous buyback in which the company repurchased 6.5 million shares for $73.3 million, as reported in its second-quarter 2024 financial results.

According to Green Thumb’s founder, Chairman, and CEO Ben Kovler, the buyback program provides greater flexibility to utilize cash reserves for share repurchases when favorable opportunities arise; “This buyback program provides greater flexibility to use our cash reserves to repurchase more shares should the opportunity present itself,” Kovler said.

The announcement came just days after Green Thumb announced the closing of a $150 million, five-year syndicated credit facility led by Valley National Bank. This “first-of-its-kind” refinancing for the U.S. cannabis industry provided the company with a strong balance sheet. Kovler noted that the company remains open to strategic mergers and acquisitions, “In light of recent refinancing, (we) remain open to strategic M&A, capital expenditures into the business and unique investment opportunities,” he said.

While the company is authorized to repurchase shares, it is under no obligation to do so and can suspend the program at any time. Additionally, Green Thumb stated that it does not anticipate incurring debt to fund the buyback. The number of shares repurchased will depend on market conditions and regulatory requirements, and any repurchased shares will be returned to the treasury and cancelled.

#4: Flora Growth 

On September 18, 2024, Flora Growth Corp. (NASDAQ: FLGC) announced a partnership with London-based Blossom Genetics to supply Colombian medical marijuana to the German market. 

The collaboration will introduce two cannabis strains, Chemmy Jones and Northern Lights, thereby enhancing Flora’s mission to meet the country’s growing demand for high-quality medical cannabis, following Germany’s recent legalization of recreational cannabis, which took effect on April 1, 2024.

Flora Growth’s CEO, Clifford Starke, emphasized the agreement as a significant move to expand the company’s global footprint and meet the rising demand for medical cannabis in Germany. “The demand for medical cannabis has surged since legalization, and we are confident that the strains we will bring to the market will resonate with patients and healthcare providers alike,” Starke said in a statement.

With a history of operations in Germany since 2017 and holding the country’s first medical cannabis license, Flora has established a robust distribution network, supplying over 1,200 pharmacies.

Under the terms of the agreement, product deliveries are set to commence in the fourth quarter of 2024. However, despite this strategic partnership, Flora Growth’s shares fell 4.1% on the Nasdaq following the announcement, closing at $1.10.

#5: High Tide

Canadian marijuana retailer and e-commerce platform High Tide Inc. (NASDAQ: HITI) (TSXV: HITI) announced impressive third-quarter financial results for the period ending July 31, surpassing analysts’ expectations. The company achieved record revenue of C$131.7 million (approximately US$96.9 million), exceeding the Yahoo Finance average estimate of US$94.35 million. This marked a 6% increase compared to both the previous year and the prior quarter. Additionally, High Tide reported a net income of C$800,000, a significant turnaround from a C$3.6 million loss in the same period last year.

Same-store sales showed positive trends, rising 1% year-over-year and 5% sequentially, with a 3% daily increase from the previous quarter. Notably, from October 2021 to June 2024, same-store sales at Canna Cabana increased by 118%, while the average operator in the five provinces where High Tide operates experienced a 21% decline.

High Tide’s CEO, Raj Grover, highlighted the company’s responsible growth and its commitment to adding shareholder value. “Our numbers continue to drive home the fact that we are a well-managed, innovative company that has grown responsibly while continuing to build value for shareholders,” Raj Grover said in a statement. 

Additionally, the company secured a new C$15 million line of credit in August to support its expansion efforts, with plans to open 20-30 new dispensaries by the end of 2024, maintaining a strategy of prudent acquisitions.

Canna Cabana currently operates 183 locations across Canada, contributing to a 12% market share growth in its provinces. The Cabana Club loyalty program has grown to over 1.55 million members, while the ELITE paid membership program surged 203% year-over-year to 57,000 members, marking its fastest growth since inception.

High Tide also reported a strong cash position with C$35.3 million in cash and equivalents, a 37% increase over the year. The company has generated approximately C$26 million in free cash flow over the past five quarters. 

Looking ahead, High Tide aims to expand to 300 Canna Cabana locations nationwide and capture 15% market share in its operating provinces. The company is also exploring international opportunities, particularly in Germany, as it tracks legislative and regulatory developments.

Top Psychedelic Companies for Week

#1: Psyence Biomedical

Psyence Biomedical Ltd. (NASDAQ: PBM) signed a conditional binding term sheet to acquire privately-held Clairvoyant Therapeutics Inc, a Canadian developer focused on psilocybin-based therapies, for a total consideration of up to $1.5 million.

The deal includes an immediate issuance of $500,000 in shares, with two additional milestone payments of $250,000 each contingent upon achieving specific targets by December 2026. Psyence will also provide up to $1.8 million to cover Clairvoyant’s clinical trial liabilities. This strategic move aims to bolster Psyence’s efforts in addressing Alcohol Use Disorder (AUD) through psilocybin therapy.

Clairvoyant is currently conducting a Phase IIb clinical trial evaluating a synthetic psilocybin candidate for AUD, with topline results expected in early 2025. The trial, which includes 154 participants, seeks to demonstrate the effectiveness of psilocybin combined with psychotherapy in reducing alcohol consumption.

Dr. Neil Maresky, CEO of Psyence, highlighted the complementary nature of Clairvoyant’s synthetic therapy with Psyence’s existing nature-derived psilocybin programs, particularly those targeting adjustment disorders in palliative care. He emphasized that the acquisition could position Psyence as a leader in the psychedelic therapeutic space, addressing significant gaps in mental health treatment options.

On the other hand, Damian Kettlewell, CEO of Clairvoyant, expressed enthusiasm for the partnership, noting the pressing need for effective AUD treatments, given the low percentage of patients currently seeking drug therapy despite high prevalence rates.

The acquisition is contingent upon a definitive share purchase agreement and other customary closing conditions, including board and regulatory approvals. If successful, this partnership is poised to accelerate the development of innovative treatments for AUD and other mental health disorders. 

#2: Awakn

Awakn Life Sciences Corp. (CSE: AWKN) (OTC: AWKNF), a clinical-stage biotech company focusing on therapies for substance use and mental health disorders, particularly alcohol use disorder, announced on Wednesday September 18, that it had upsized its private placement financing. The company said that it had raised its previously announced non-brokered private placement financing, from $1 million to $2 million.

As a result of this upsizing, Awakn closed the fourth tranche of the offering, issuing 857,143 units at $0.46 per unit, resulting in additional gross proceeds of $394,286. This brought the total amount raised through this non-brokered private placement to $1,117,142. 

Each unit consisted of one common share and 0.75 of a warrant, with each whole warrant allowing the purchase of one additional common share at $0.63 for up to five years. Moreover, all securities issued under this offering are subject to a four-month hold period and applicable resale rules under securities legislation.

According to the company, the gross proceeds from the offering will be used to fund the company’s general working capital.

Key Takeaways; Cannabis Sector

• Canopy Growth received ISS recommendation for creation of exchangeable shares.
• Trulieve to hold first quarter 2024 results conference call at the beginning of May.
• Goodness Growth announced sale of Vireo Health of New York in effort to address financial constraints.
• Avant Brands entered German market through IM Cannabis deal.

Key Takeaways; Psychedelic Sector

• Awakn partnered with Oklahoma clinic for addiction treatment.

Below is a weekly roundup of what happened this week in the cannabis and psychedelic sectors. In this ever-evolving landscape, we explore the major developments and groundbreaking initiatives happening among companies operating in these industries; from advancements in medical research, therapeutic applications to shifts in legal frameworks and current market trends.

Top Marijuana Companies for Week

#1: Canopy Growth

Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) recently received a favorable recommendation from Institutional Shareholder Services (“ISS”) regarding its proposal for the creation of exchangeable shares. This recommendation came ahead of the special meeting of shareholders scheduled for April 12, 2024.

The proposed amendment to Canopy Growth’s articles of incorporation aims to establish a new class of non-voting and non-participating exchangeable shares, alongside restating the rights of common shares. According to the company, the objective behind this move is to facilitate the Company’s entry into the U.S. cannabis market, particularly through its U.S.-domiciled holding company, Canopy USA, LLC.

Canopy USA holds various U.S. cannabis investments, and with the approval of the proposed amendment, it will have the ability to acquire additional assets, including Acreage Holdings, Inc. (OTC: ACRHF), Mountain High Products LLC, Wana Wellness LLC, The Cima Group LLC, and Lemurian Inc. According to Canopy, these potential strategic acquisitions are designed to unlock value for Canopy Growth and its shareholders, positioning the company for growth and profitability in anticipation of federal legalization of cannabis in the United States.

ISS, a renowned independent proxy advisory firm with a significant client base, recommended that Canopy Growth shareholders vote in favor of the proposed amendment. In its report, ISS highlighted the importance of this proposal in ensuring compliance with applicable U.S. federal law.

Canopy Shareholders are encouraged to participate in the upcoming special meeting and cast their votes. The meeting, scheduled for April 12, 2024, will be conducted virtually, and shareholders can access the proceedings through a live audio webcast. The deadline for submitting proxies or voting instruction forms is April 10, 2024.

#2: Trulieve

Trulieve Cannabis Corp. (OTC: TCNNF), one of the leading marijuana multistate operators in the U.S., announced that it will conduct its conference call on Thursday, May 9, 2024, at 8:30 AM Eastern Time, after the release of its first-quarter 2024 financial results. Chairman, Founder, and Chief Executive Officer Kim Rivers and Chief Financial Officer Wes Getman are expected to participate in the call, where they will offer insights into Trulieve’s financial and operating performance.

The call will attract significant interest from stakeholders, with analysts eagerly awaiting Trulieve’s financial updates. Analysts have predicted revenue estimates of $286.36 million and average earnings estimate of -0.11. The company’s performance against these estimates will be closely scrutinized during the call.

Additionally, Trulieve had previously announced its participation in several events during April 2024, showcasing its commitment to industry engagement and advocacy. According to the company, Founder and CEO Kim Rivers will participate in a panel discussion at the Benzinga Cannabis Capital Conference in Miami, Florida, on April 17th. The panel, which will include the Bellamy Brothers, campaign spokesmen for the Smart & Safe Florida initiative, will address crucial topics pertinent to the cannabis industry.

#3: Goodness Growth

In a strategic move aimed at addressing financial challenges, cannabis multistate operator Goodness Growth Holdings, Inc. (OTC: GDNSF) unveiled plans to sell its subsidiary, Vireo Health of New York (VireoNY), to Ace Venture Enterprises for a sum ranging between $3 million to $5 million. The sale comes as Goodness Growth endeavors to amend a credit agreement with its secured lender, Chicago Atlantic Real Estate Finance, Inc. (NASDAQ: REFI), a cannabis real estate investment trust (REIT) based in Illinois.

Under the terms of the deal, Ace Venture Enterprises, a minority-owned business in New York founded by TV and film producer Steven Acevedo, will acquire VireoNY’s licenses, inventory, and assets. Additionally, Ace Venture Enterprises will take over VireoNY’s lease agreement with Innovative Industrial Properties, Inc. (NYSE: IIPR) for a marijuana cultivation and manufacturing facility located in Johnstown, New York. 

To facilitate the transition, Goodness Growth will provide a $2.5 million unsecured loan to VireoNY, while Ace Venture Enterprises pledged a $20 million investment for the development of licenses and to support the transfer of the IIP lease. Furthermore, Ace intends to acquire the Johnstown cannabis cultivation and manufacturing campus from IIP through a two-year purchase option.

Despite the impending sale, Goodness Growth will maintain a collaborative advisory agreement with Ace, retaining management and compliance oversight in exchange for approximately 15% of net profits. The deal is contingent upon regulatory approval and secured capital commitments and is anticipated to close by June 30

#4: Avant Brands

Canadian producer Avant Brands Inc. (OTC: AVTBF) inked a deal with IM Cannabis Corp. (NASDAQ: IMCC), a medical cannabis company based in Israel and Germany. This is a strategic move aimed to tap into the expanding German medical cannabis market. The agreement grants IMC’s German subsidiary, Adjupharm GmbH, exclusive rights to launch Avant’s flagship BLK MKT brand in Germany.

Under this international trademark licensing agreement, Avant will license its BLK MKT brand to Adjupharm. The products will exclusively feature cannabis cultivated by Avant in Canada and then exported to Germany. 

The timing of this collaboration coincides with Germany’s recent relaxation of medical cannabis restrictions, whereby the country approved partial legalization of cannabis from April, signaling a significant opportunity for market growth as discussions about recreational cannabis continue.

Norton Singhavon, Founder and CEO of Avant Brands, expressed enthusiasm about the partnership, highlighting its importance in expanding Avant’s global presence and positioning the BLK MKT brand on an international platform. “Partnering with IMC is a strategic move; it not only bolsters our position as a global leader in the ultra-premium cannabis sector but also amplifies the reach of our flagship brand, BLK MKT, on the global stage,” Norton said in a statement.

Top Psychedelic Company for Week

#1: Awakn

Awakn Life Sciences Corp. (CSE: AWKN) (OTC: AWKNF) a pioneering biotechnology company focused on developing medication-assisted treatments for addiction, announced a significant expansion in North America through a Licensing Partnership agreement with Rivus Wellness and Research Institute, based in Oklahoma City. 

This marked Awakn’s first foray into the U.S. southern states, enhancing access to its groundbreaking treatment protocol, Awakn Kare, for individuals struggling with Alcohol Use Disorder (AUD). 

Awakn Kare represents a proprietary treatment regimen validated in a phase II a/b trial, demonstrating remarkable efficacy with an 86% abstinence rate over six months post-treatment, a stark improvement compared to the mere 2% seen pre-trial. This efficacy surpasses the current standard of care for AUD, which typically yields only a 25% abstinence rate over a similar timeframe.

The partnership agreement, effective since May 18, 2023, and launched in April 2024, grants Rivus Wellness and Research Institute access to Awakn’s advanced therapeutics and comprehensive training for its practitioners. In return, Rivus will pay Awakn an annual fee alongside a revenue share per treatment administered.

Anthony Tennyson, CEO of Awakn, expressed enthusiasm about the partnership, emphasizing the shared ethos and vision between the two organizations. He also highlighted the significance of providing a novel and superior treatment option to individuals in Oklahoma facing addiction challenges. “We are excited to partner with Rivus and their excellent team, there is shared ethos and vision between the two organizations which is important. Being able to provide a whole new cohort of people in Oklahoma with a new more effective treatment option whilst they are in desperate need, is what drives us,” Anthony Tennyson said in a statement.

Moreover, Dr. Lane Peyton of Rivus Wellness and Research Institute echoed this sentiment, emphasizing their commitment to delivering innovative treatments and interventions to the Oklahoma City mental health community. “The Rivus Wellness and Research Institute has consistently served the Oklahoma City mental health community with innovative treatments, interventions, and preventions, and we feel that this partnership with Awakn Kare will benefit our patients tremendously,” Dr. Lane Peyton commented.

The collaboration between Awakn Life Sciences and Rivus Wellness and Research Institute signifies a significant step forward in addressing the pressing need for more effective addiction treatments in the United States. With Awakn Kare’s proven efficacy and Rivus’s dedication to patient care, this partnership holds promise for improving outcomes and transforming lives affected by AUD.