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.

Key Takeaways; Cannabis Sector

• Organigram secured CA$41.5 million in second investment tranche from British American Tobacco.
• Jushi Holdings filed for CA$350 million shelf offering.
• Massachusetts social equity advocates are demanding investigation into Ascend Wellness over cannabis license violations. 

Key Takeaways; Psychedelic Sector

• Awakn filed new patent for ‘promising’ psychedelic compounds to treat PTSD.
• GH Research faced continued losses in the second quarter, amid efforts to lift FDA hold on GH001.

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: Organigram

Canadian cannabis producer Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) announced that it had successfully closed the second tranche of a substantial investment from British American Tobacco p.l.c. (NYSE: BTI) subsidiary, BT DE Investments Inc. This tranche added CA$41.5 million to Organigram’s coffers, bringing the total investment so far to CA$124.6 million (approximately $92 million USD).

The latest transaction involved the acquisition of 4.4 million common shares and 8.5 million Class A preferred shares at a price of CA$3.2203 per share. A third and final tranche, involving 12.9 million additional shares, is expected to be completed by February 28 next year.

Organigram stated that it plans to use the funds to bolster its strategic investment pool, known as Jupiter. This pool aims to accelerate the company’s international growth, with a focus on expanding into new markets and enhancing its technological and product offerings.

The company has already made significant investments through the Jupiter pool, including a $2 million investment in North Carolina-based Open Book Extracts, a leader in hemp-derived products, and a €14 million ($15.5 million USD) investment in Sanity Group, a key player in Germany’s rapidly expanding medical cannabis market.

#2: Jushi Holdings

Jushi Holdings Inc. (CSE: JUSH) (OTC: JUSHF), a multi-state cannabis operator and owner of Beyond Hello dispensaries, filed a preliminary short form base shelf prospectus with Canadian securities regulators. This filing could enable the company to raise up to C$350 million over the next two years by issuing various securities, including shares, debt, and warrants, in Canada.

According to the company, the purpose of this move is to maintain financial flexibility and position Jushi to capitalize on potential regulatory changes in the U.S. cannabis market and pursue opportunistic acquisitions. The company aims to build a multi-state portfolio of branded cannabis assets through acquisitions, distressed workouts, and competitive applications.

The shelf prospectus, if approved, will be effective for 25 months, with specific terms of any offerings to be detailed in future filings. Jushi also emphasized that this filing is not an offer to sell securities in the U.S. and is limited to the Canadian market. The potential funding could support Jushi’s expansion efforts, especially as marijuana rescheduling discussions continue at the federal level in the U.S.

#3: Ascend Wellness

Social equity advocates in Massachusetts are urging a formal investigation into Ascend Wellness Holdings, Inc. (CSE: AAWH-U.CN) (OTC: AAWH), a New York-based multistate cannabis operator, for allegedly violating the state’s cannabis business ownership cap. According to a report by independent journalist Grant Smith Ellis, Abner Kurtin, the executive chairman of Ascend, is said to control between six to nine licenses, which exceeds the state’s strict limit of three licenses per owner.

In response to the report, the Black Economic Council of Massachusetts (BECMA) and Equitable Opportunities Now (EON) sent a letter to the state’s Cannabis Control Commission (CCC) and lawmakers, calling for a thorough review of all license ownerships by Ascend. In the letter, they highlighted concerns that the industry, including Ascend, may be using family members as “straw purchasers” to bypass ownership limits, potentially undermining market integrity.

The letter also noted that Ascend has spent $30,000 on lobbying efforts to lift the three-license cap, further raising concerns about potential violations. Additionally, the advocates are pressing for the establishment of an anonymous tip line for reporting such violations and ensuring that the CCC has adequate resources to prevent market consolidation.

Ascend Wellness has not yet responded to the request for comment regarding these accusations.

Top Psychedelic Companies for Week

#1: Awakn

Canadian biotech firm Awakn Life Sciences Corp. (CSE: AWKN) (OTC: AWKNF) recently filed a new patent application for a class of aminoindane chemical entities with the potential to treat PTSD and other trauma-related disorders. This move is part of an ongoing collaboration with UK-based Graft Polymer Plc, which has led to the development of two promising chemical series.

The new patent strengthens Awakn’s intellectual property portfolio and reinforces its competitive position in the biopharmaceutical market. And in order to advance these compounds toward market readiness, Awakn announced that it had partnered with Charnwood Discovery, a UK drug discovery service provider, to synthesize the compounds for further testing.

Anthony Tennyson, CEO of Awakn, highlighted the progress, stating, “Our collaboration with Graft Polymer is advancing well, bringing us closer to developing new therapeutics for PTSD and other trauma-related conditions.”

In addition to its PTSD research, Awakn is also working on a psychedelic treatment for alcohol use disorder using MDMA, in collaboration with Catalent, another UK-based company. Over the past year, Awakn has started generating revenue from its network of psychedelic medicine clinics, further supporting its mission to bring innovative mental health treatments to market.

#2: GH Research

GH Research PLC (NASDAQ: GHRS), a clinical-stage company focused on developing psychedelic treatments, reported a significant increase in its second-quarter losses, amounting to $10.4 million compared to $7.7 million the previous year. This increase was attributed to heightened research and development expenses, which rose from $7.2 million to $9.8 million. 

Despite the losses, the Dublin-based company maintains a solid financial position with $204.5 million in cash and investments, which according to the company is sufficient to fund operations until 2026. 

GH Research is focused on developing GH001, an inhaled form of the psychedelic compound mebufotenin, for treatment-resistant depression. The drug is currently in a Phase 2b trial, with the double-blind phase expected to conclude in Q3 2024 and top-line results anticipated in late 2024 or early 2025. The company is also testing GH001 for postpartum depression and bipolar II disorder.

Unfortunately, The U.S. Food and Drug Administration (FDA) placed a clinical hold on GH001 last year, However GH Research said that it is working to provide the necessary data to address the FDA’s concerns, including additional toxicology studies. Meanwhile, a Phase 1 trial for the company’s proprietary aerosol delivery device has been approved in the UK and is now recruiting participants.

Additionally, GH Research reported that the company had appointed Dr. Velichka Valcheva as its new CEO, succeeding co-founder Dr. Theis Terwey.

Key Takeaways; Cannabis Sector

• SNDL acquired Indiva in efforts to strengthen position in cannabis edibles market.
• Ascend Wellness overhauled leadership amid financial struggles.
• Avicanna reduced debt with $2M private placement funds.
• InterCure reported a break-even first half of 2024 despite Israel-Hamas war disruptions.

Key Takeaways; Psychedelic Sector

• Awakn announced a breakthrough in aminoindane pre-clinical program.
• Red Light Holland reported a strong quarterly performance amidst planned expansion.

Cannabis investors have proven to be a resilient group. Despite facing repeated setbacks and ongoing declines in stock valuations, they remain committed to the sector. The latest hit came this week with news of a delay in the federal rescheduling process, triggering another sharp drop in cannabis stocks. A new report from Congress’ official policy-research arm suggested that rescheduling marijuana alone is “unlikely by itself” to resolve the cannabis industry’s banking challenges. The August 26 analysis from the Congressional Research Service also echoed earlier concerns, warning that moving marijuana from Schedule 1 to Schedule 3 “without other legal changes” would still leave state-legal cannabis businesses in conflict with federal law.

Below is a weekly roundup of key events in the cannabis and psychedelic sectors. We examine the major developments and groundbreaking initiatives among companies in these industries, from advancements in medical research and therapeutic applications to shifts in legal frameworks and current market trends.

Top Marijuana Companies for Week

#1: SNDL

Canadian cannabis and alcohol company SNDL Inc. (NASDAQ: SNDL) won its stalking-horse bid to acquire Indiva Limited (OTC: NDVAF), a leading producer of cannabis edibles in Canada. The acquisition includes Indiva’s 40,000-square-foot production facility in London, Ontario, along with a portfolio of popular owned and licensed edibles brands such as Pearls by Grön, No Future, Wana Brands, and Bhang Chocolate.

The deal, which is subject to approval by the Ontario Superior Court of Justice, is expected to close in SNDL’s fourth quarter. SNDL said that it plans to seek court approval on or around September 19. The acquisition will enable SNDL to expand its presence in the cannabis edibles market, leveraging Indiva’s strong market share of 28% to 32% in key provinces such as Ontario, Alberta, and British Columbia.

Zach George, CEO of SNDL, expressed enthusiasm for the deal, stating, “This transaction will materially improve our market share in the edibles category and is expected to unlock value through improved capacity utilization, a reduction in aggregate corporate expenses, and the potential sale of redundant real estate holdings.”

Indiva, which had been facing significant financial challenges, owed SNDL a substantial loan amount. Earlier this year, Indiva had repaid CA$2 million of its CA$19.2 million loan from SNDL and restructured some of its debt terms. Additionally, Indiva carried CA$2.5 million in outstanding convertible debentures, further straining its balance sheet. The company’s mixed financial results, including a net loss of CA$1.8 million for the first quarter of 2024, prompted it to explore strategic alternatives.

In April, Indiva hired SSC Advisors to evaluate options to maximize shareholder value after reporting accumulated deficits of CA$71.6 million and negative working capital of CA$2.2 million. Despite these headwinds, Indiva maintained a strong position in the Canadian edibles market, with its Pearls gummies brand continuing to drive sales growth.

This acquisition marked the second major deal announced by SNDL in August 2024. Earlier in the month, SNDL agreed to buy the remaining shares of Alberta-based Nova Cannabis Inc. (OTC: NVACF) (TSX: NOVC) for approximately CA$40 million. 

These moves are part of SNDL’s broader strategy to enhance operational efficiency and market positioning, which includes a restructuring plan to reduce corporate expenses, eliminate 106 jobs, and achieve over $20 million in annual savings.

By acquiring Indiva, SNDL aims to solidify its market leadership in the cannabis edibles sector and capitalize on the growing demand for cannabis-infused products in Canada.

#2: Ascend Wellness

Ascend Wellness Holdings, Inc. (CSE: AAWH-U.CN) (OTC: AAWH), a New York-based marijuana multistate operator (MSO), announced significant leadership changes following a period of declining revenue and increased losses. The company announced the termination of its Chief Executive Officer (CEO), John Hartmann, and Chief Financial Officer (CFO), Mark Cassebaum, effective immediately. The company stated that the move is part of a broader strategy to realign the company amid recent performance challenges.

Samuel Brill, the lead independent director on Ascend’s board, was appointed as the new CEO, replacing Hartmann, who had only assumed the role in May 2023 following a prior leadership shake-up. Replacing Cassebaum as CFO is Roman Nemchenko, who has served as Ascend’s Chief Accounting Officer.

Ascend co-founder and director Francis Perullo was also appointed as the company’s new president.

The leadership overhaul comes as Ascend Wellness struggles with a mixed financial performance. The company reported a net loss of $21.8 million in the second quarter of 2024, a significant drop from the net income of $841,000 reported in the same quarter the previous year. Despite achieving an adjusted EBITDA of $28.3 million, a 33% increase year-over-year, the figure represented a 12.7% decline from the previous quarter.

The company cited increased retail competition in key markets like Illinois, Massachusetts, and New Jersey as factors behind its sequential decline in revenue. This challenging environment prompted Ascend to revise its full-year guidance, with an expected 2024 revenue growth of 11-13% year-over-year, down from the previous forecast of 12-15%.

Abner Kurtin, Executive Chairman of Ascend’s board, expressed confidence in the new leadership team’s ability to guide the company through its next growth phase. Kurtin emphasized that the changes aim to “realign our strategy and address recent performance challenges.” He added that the company’s focus will be on improving operational performance while continuing to deliver high-quality products and services to its customers.

#3: Avicanna

Toronto-based biopharmaceutical company Avicanna Inc. (TSX: AVCN) (OTC: AVCNF) successfully paid off $1.4 million in debt from August 2023, just days after closing a $2 million non-brokered private placement. 

The non-brokered private placement involved the issuance of 6.6 million shares. The issued shares, warrants, and any convertible securities are subject to a four-month hold period under Canadian securities laws, with the offering requiring approval from the Toronto Stock Exchange (TSX), where Avicanna’s shares are listed under the ticker AVCN. 

Avicanna, which specializes in cannabinoid-based products, announced plans to allocate the remaining funds for general working capital, administrative expenses, production, manufacturing, and research and clinical development.

Last year, Avicanna expanded its portfolio by acquiring Medical Cannabis by Shopper’s Business from Canadian pharmacy chain Shoppers Drug Mart for CA$2.6 million ($1.9 million) plus earnout payments based on net revenue over a two-year period. This acquisition, alongside the launch of the MyMedi.ca platform, contributed to Avicanna’s significant revenue growth of 314%, increasing from $2 million in 2022 to $16.8 million in 2023. The company’s consolidated gross profits also rose by 500%, from $1.1 million in 2022 to $6.7 million in 2023

#4: InterCure

Israeli medical marijuana company InterCure Ltd. (NASDAQ: INCR), operating as Cannadoc, came close to breaking even in the first half of 2024, despite disruptions from the ongoing Israel-Hamas conflict. 

The company reported a total comprehensive loss of just NIS 6,000 (US$1,654) for the period ending June 30, 2024, a significant drop from a profit of NIS 3.8 million in the same period of 2023 but a significant improvement from the NIS 63.5 million loss reported for the entire year of 2023.

Revenue for the first half of 2024 dropped by 40% to NIS 125.7 million, down from NIS 208.6 million in the same period the previous year. Gross profit remained flat sequentially at NIS 40.4 million but was also down 40% from the prior-year period. Despite this, the gross profit margin nearly recovered to 32%, compared to 33% in the first half of 2023, while operating profit stood at NIS 10.5 million.

The company ended the period with total assets of NIS 740.9 million, including NIS 20.8 million in cash, against total liabilities of NIS 278.8 million.

InterCure continues to focus on growth, with CEO Alexander Rabinovitch emphasizing the company’s strategic actions to strengthen its cultivation and supply chain in Canada and Europe. “InterCure is set for a significant growth in the coming quarters and years in all territories, and to that end, we have executed strategic actions to strengthen the company’s high-quality cultivation and supply chain in Canada and Europe,” Rabinovitch said in a statement.

Additionally, InterCure reported in its financial statement that its southern facility at Kibbutz Nir Oz, which was damaged during the October 7 attack by Hamas, is under restoration. The company stated that it had received advance payments from Israeli authorities, amounting to “tens of millions of NIS,” which have been invested in restoration efforts. InterCure expects additional substantial payments to continue the restoration, although access to the site remains partially restricted.  

Moreover, last week the company also announced a strategic expansion in Germany through a new agreement with Cookies, the globally recognized cannabis brand. Under this agreement, InterCure will cultivate, manufacture, import, and distribute Cookies-branded products from its facilities. Initially, these products will be available in eight licensed branded pharmacies across Germany, through Cookies Corners.

Top Psychedelic Companies for Week

#1: Awakn

Awakn Life Sciences Corp. (CSE: AWKN) (OTC: AWKNF), a biotechnology company focused on treating substance use and mental health disorders, announced significant progress in its pre-clinical program through its partnership with Graft Polymer (UK) Plc. This collaboration is working on a novel class of therapeutics aimed at treating trauma-related mental health disorders, including Post-Traumatic Stress Disorder (PTSD).

The recent advancements included the identification of two promising chemical series as co-leads for development, which represent a potential breakthrough in treatment options for PTSD. The company also reported that it had successfully established synthesis pathways for these compounds, enabling scalable production. 

Awakn also said that it had selected Charnwood Discovery, a UK-based drug discovery service provider, as its synthesis partner to ensure high-quality production. Additionally, Awakn announced that it had filed a provisional patent application on August 27, 2024, covering a new class of aminoindane chemical entities and their derivatives, bolstering the intellectual property framework of the collaboration.

Anthony Tennyson, CEO of Awakn, highlighted the progress, stating, “Our collaboration with Graft Polymer is advancing well, bringing us closer to developing new therapeutics for PTSD and other trauma-related conditions.”

#2: Red Light Holland

Red Light Holland Corp. (CSE: TRIP) (OTC: TRUFF) reported notable improvements in its financial performance for the first quarter ending June 30, 2024. The company’s revenue increased to C$1.5 million, up from C$1.2 million in the same period last year, marking a 29.7% year-over-year growth. Despite this positive trend, Red Light Holland’s comprehensive net loss was reduced to C$1.4 million from C$1.9 million the previous year. The company’s cash reserves declined slightly to C$13.3 million from C$14.1 million in March 2024.

The company CEO, Todd Shapiro, highlighted the company’s positive performance and strategic focus on growth and cash management. “Our financial performance in the first quarter of 2025 reflects our strategic commitment to growth while maintaining strong cash management. We’ve increased revenues by 29.7% year-over-year, a clear indicator of our market strength and operational efficiency. Unlike many companies in our sector facing severe financial challenges, Red Light Holland continues to move forward with positive momentum, driven by our diversified revenue streams and prudent cash use. We look forward to continued, patient growth and we are excited to discuss our updated strategy in mid-to-late September 2024, as we’ll host a live Q&A for our loyal shareholders,” Todd said in a statement.

Significant progress in the quarter included a notable reorder from Costco Canada, which increased its purchase of Red Light’s mushroom grow kits by 33.33% to 26,880 units. Additionally, Red Light’s iMicrodose and Maka magic truffles are now being distributed in the Netherlands and supported by the iMicroapp tele-counseling platform.

Looking ahead, Red Light is advancing its development of the AEM Ontario facility, which has received a building permit and is set to start construction in early spring 2025. The facility is projected to generate around C$80,000 in weekly revenue upon completion, with an expected annual revenue run rate of C$16 to C$17 million. Additionally, the company aims to increase shiitake mushroom sales at its AEM Farm, targeting weekly revenues of C$24,000 to C$30,000 at full capacity.

Key Takeaways; Cannabis Sector

• The Cannabist Co. exits Florida market in $16.4 million sale.
• TerrAscend launched a $10 million share buyback program to enhance shareholder value.
• AFC Gamma provided over $18 million in credit to 3 cannabis operators.
• Cansortium reported its first profit of 2024, as the company plans expansion and RIV Capital acquisition.

Key Takeaways; Psychedelic Sector

• Clearmind secured key patent for binge behavior treatment amidst financial updates.
• Awakn initiated phase 3 trial of AWKN-001 for severe 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: The Cannabist

The Cannabist Company Holdings Inc. (OTC: CBSTF), a New York-based cannabis operator, announced that it is selling all 14 of its Florida medical marijuana dispensaries and three cultivation facilities for a total of $16.4 million as part of its strategy to reduce its operational footprint. The sale is split into two separate deals involving multiple multistate operators (MSOs).

In the first deal, an undisclosed MSO is purchasing the company’s 40,000-square-foot cultivation facility in Lakeland for $11.4 million. This payment will be made in cash, with $2 million already held in escrow.

The second deal involves a joint venture between Arizona-based Mint Cannabis and California-headquartered Shango, which will acquire The Cannabist’s 14 dispensaries, two cultivation and manufacturing facilities in Alachua and Arcadia, and its Medical Marijuana Treatment Center (MMTC) licenses for $5 million. This payment includes $3 million in cash and a $2 million promissory note, with $750,000 already in escrow. Following this transaction, the dispensaries are expected to be rebranded under the Mint Cannabis name.

David Hart, CEO of The Cannabist Co., emphasized that this strategic move allows the company to eliminate loss-making operations; “As previously disclosed, our Florida assets are better suited for other operators’ portfolios, allowing us to eliminate loss-making operations that represent less than 5% of revenue, while bringing in non-dilutive capital to further bolster the balance sheet,” David Hart said in a statement.

Recently, The Cannabist has been focusing on growth markets and optimizing profitability as part of its broader corporate restructuring efforts. With the exit from Florida, The Cannabist will continue to operate in 13 markets, although it plans to reduce its operations to 12 states. The company has been selling off assets as part of this restructuring, including recent sales of subsidiaries in Arizona and Virginia.

The Cannabist Co., formerly known as Columbia Care, operates 95 facilities across the U.S., including 73 stores and 22 manufacturing plants. The company’s shares trade on the Cboe Canada exchange and over-the-counter markets under the ticker CBSTF.

#2: TerrAscend

TerrAscend Corp. (TSX: TSND) (OTC: TSNDF), a Canadian-headquartered cannabis company with significant U.S. assets, announced its first-ever share buyback program, demonstrating its confidence in the company’s future and commitment to enhancing shareholder value. 

The program, which was approved by the company’s board, authorized the repurchase of up to $10 million worth of common shares over the next 12 months, starting August 22, 2024. This move allows TerrAscend to buy back up to 10 million shares, representing 5% of its 291.5 million outstanding shares, with a daily repurchase limit of 65,361 shares on the Toronto Stock Exchange (TSX).

TerrAscend Executive Chairman, Jason Wild, emphasized that the buyback reflects the company’s confidence in its business strength, growth prospects, and strong cash flow. “We are confident in the strength of our business, growth prospects operational excellence and strong cash flow,’” Wild said in a statement. “We believe our equity has compelling value and will be opportunistic with our share repurchases. 

Under this program, TerrAscend is not obligated to purchase the shares and can suspend the program if better uses for its cash reserves arise. 

Additionally, the company recently secured a $140 million senior secured term loan with a 12.75% interest rate, maturing in August 2028, which according to the company will support its financial strategies without incurring additional debt for the buyback.

This move follows the company’s recent financial performance, where it reported a net loss of $6.2 million for the second quarter of 2024 but generated $11.7 million in free cash flow and increased its revenue to $77.5 million. 

This buyback by TerrAscend aligns with trends among other public cannabis companies like Verano Holdings Corp. (OTC: VRNOF), which recently announced such a move, and Green Thumb Industries Inc. (CSE: GTII) (OTC: GTBIF), which also implemented a $50 million repurchase program last year to bolster shareholder value. 

#3: AFC Gamma

AFC Gamma, Inc. (NASDAQ: AFCG), a real estate investment trust (REIT) based in West Palm, Florida, that provides institutional loans to state law compliant cannabis operators in the U.S, established and expanded credit facilities totaling over $18 million for three cannabis companies located in Georgia, Missouri, and Florida. These credit facilities consist of first-lien term loans secured by the borrowers’ assets.

In Georgia, AFC Gamma committed $11 million to Private Company Q, which holds a Class 2 medical cannabis license. The funds will be used to build a cultivation and processing facility and to establish two new dispensaries.

In Missouri, AFC Gamma extended an additional $5.5 million to BeLeaf Medical, a vertically integrated cannabis company, bringing its total funding to $26.1 million. BeLeaf will use the funds to acquire two stores in the state.

Finally, in Florida, AFC Gamma provided an additional $1.8 million to Sunburn Cannabis, increasing its credit facility to $36.5 million. The funds will support the build-out of two new dispensaries and additional cultivation capacity. 

Commenting on these deals AFC’s CEO, Daniel Neville, said; “At AFC, we are dedicated to fostering strong, lasting relationships by working together with our borrowers as they grow their businesses. We are excited to initiate a new relationship with Private Company Q, helping them establish a strong foothold in Georgia. Additionally, we are pleased to strengthen our support for BeLeaf and Sunburn, providing additional capital as they expand their operations in key markets. These investments align with our strategy to deploy capital in restricted license states with attractive supply-demand dynamics.”

#4: Cansortium

Cansortium Inc. (OTC: CNTMF), a Florida-based cannabis operator, which operates under the brand name Fluent, reported a significant milestone in the second quarter of 2024, achieving a net income of $947,000; its first profitable quarter this year. 

This positive outcome showed a 12% year-over-year revenue increase, reaching $27.3 million, up from $25.2 million in the previous quarter when the company experienced a $4.2 million loss. Despite the profit, cash flow from operations dropped to $2.8 million due to the settlement of carried-over tax payments.

CEO Robert Beasley emphasized the company’s continued growth and highlighted the upcoming acquisition of RIV Capital Inc. (CSE: RIV) (OTC: CNPOF), which is expected to close by the year’s end. “We are excited about our upcoming business combination with RIV Capital and have already begun key integration steps,” Beasley said. “We continue to lay the foundation for growth and scalability while remaining excited about the opportunities ahead.”

Looking ahead, Cansortium plans to expand its footprint by opening four new dispensaries in Florida and a new medical dispensary in Pennsylvania by mid-2025. As of June 30, the company reported total assets of $184.6 million, including $8.4 million in cash, against $178.8 million in liabilities. 

Top Psychedelic Companies for Week

#1: Clearmind

Clearmind Medicine Inc. (NASDAQ: CMND) secured a new patent from the United States Patent and Trademark Office (USPTO) for its MEAI (5-methoxy-2-aminoindane)-based treatment program, which is designed to regulate binge behavior and alcohol consumption. This patent strengthens Clearmind’s intellectual property portfolio, which now includes 29 granted patents across 19 patent families, covering key regions such as the U.S., Europe, China, and India. 

The company’s flagship treatment leverages MEAI, a novel psychoactive compound that reduces the desire for alcohol while providing a mild euphoric effect, targeting conditions like Alcohol Use Disorder (AUD) and binge drinking.

Financially, Clearmind reported its earnings in June for the quarter ending April 30, 2024, during the quarter the company reported having $8.3 million in cash as of April 30, 2024, with operating expenses of $1.3 million for the quarter. Despite a net loss of $908,217 and no generated revenues for the first six months of 2024, the company assured investors that it has sufficient cash to fund operations for the next 12 months, although it remains a going concern due to an accumulated deficit of $21,044,080.

#2: Awakn

Awakn Life Sciences Corp. (CSE: AWKN) (OTC: AWKNF) announced on Friday that it had screened the first patient for its Phase 3 trial of AWKN-001, a novel treatment for severe Alcohol Use Disorder (AUD). The trial, which is known as MORE-KARE, is a significant study aimed at evaluating AWKN-001’s effectiveness.

AWKN-001 is a novel medication-assisted treatment that combines intravenous ketamine, an N-methyl-D-aspartate receptor modulator, with structured psycho-social support. This approach is designed to address severe AUD by reducing heavy drinking days and improving overall outcomes.

The MORE-KARE study, which is co-funded by the UK’s Medical Research Council (MRC) and the National Institute for Health and Care Research (NIHR), along with Awakn Life Sciences, will be conducted at eight NHS sites across the UK. The trial will assess the impact of AWKN-001 through various endpoints, including reductions in heavy drinking days and continuous abstinence over a six-month period.

Professor Celia Morgan, who is the trial’s lead from the University of Exeter, highlighted the urgent need for effective treatments for AUD, noting that current options have low success rates. She expressed enthusiasm for this groundbreaking study, which aims to address the significant gap in treatment options.

Additionally, Awakn’s Chief Scientific Officer, Professor David Nutt, also emphasized the potential of this trial to transform the treatment landscape for severe AUD, offering new hope to those with limited options.

This Phase 3 trial follows a successful Phase 2 study, which demonstrated promising results with high abstinence rates and a significant reduction in heavy drinking days.