Key Takeaways; Cannabis Sector

• Ayr Wellness announced a refocused strategy, exiting Illinois, and expanding in Florida
• Curaleaf’s revenue fell slightly in 2024, as the company struggles for stability
• Glass House secured a $50 million loan aimed at strengthening its financial position
• Safe Harbor restructured debt to strengthen financial flexibility
• Organigram secured final funding tranche from British American Tobacco

Key Takeaways; Psychedelic Sector

• Revive Therapeutics acquired molecular hydrogen IP from DiagnaMed
• Solvonis Therapeutics to Acquire Awakn Life Sciences in major biotech deal

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

Top Marijuana Companies for the Week

#1: Ayr Wellness

AYR Wellness Inc. (CSE: AYR.A) (OTCQX: AYRWF) is shifting its approach, moving away from rapid expansion and instead focusing on strengthening its core markets. The cannabis retailer, which was once driven by an aggressive expansion mindset, is now focusing on sustainability and profitability, as a result the company announced that it had decided to exit Illinois, where it struggled to gain the necessary scale to compete effectively, and is instead doubling down on its operations in Florida.

During the company’s recent earnings call, Ayr interim CEO, Steven Cohen, announced the company had signed a letter of intent to sell its four retail stores in Illinois, citing an inability to achieve the necessary scale or vertical integration to compete effectively in the state.

“We’re taking a hard look at other markets to make sure we are prioritizing those core markets that will deliver for our business,” said George DeNardo, Ayr’s newly promoted president.

In the fourth quarter and full year 2024 financial results, Ayr reported a $164.2 million loss, largely due to write-downs following the rejection of recreational marijuana in Florida last November. However, rather than retreating from Florida, where nearly 70% of its retail stores operate, the company is doubling down.

A key component of Ayr’s Florida strategy is the upcoming Ocala indoor cultivation facility, which DeNardo called “one of our most important catalysts of the year.” The facility is expected to more than double the company’s flower production capacity and address a longstanding weakness, the lack of premium indoor flower. “It’s been a lagging product form that we’ve had really over since Ayr’s conception,” DeNardo explained. He believes this expansion will help combat market price compression and drive more foot traffic to Ayr’s stores.

Beyond Florida, Ayr is also consolidating its operations in other key markets. It has already subleased a cultivation facility in Massachusetts and is in the process of closing a secondary grow site in Nevada. Meanwhile, in Ohio, where adult-use sales recently launched, the company is seeing strong growth. Retail revenue in the State jumped 41% quarter-over-quarter, and Ayr has opened its fourth store there, with plans to add three more this year.

Interim CEO Steven Cohen acknowledged the difficulties facing the cannabis industry but remains optimistic. Quoting legendary basketball coach Jim Valvano, he emphasized Ayr’s strategy: “Survive and advance.” He added, “I believe that, ultimately, this is an extraordinary industry, and Ayr has a very important role to play in it.”

#2: Curaleaf

Curaleaf Holdings Inc. (TSX: CURA) (OTCQX: CURLF), the largest cannabis company in the U.S., has now reported a staggering $1 billion in losses over the past five years. In 2024 alone, the company recorded a net loss of $216 million, with a $71.8 million loss in the fourth quarter, this was despite the company generating $1.34 billion in revenue in the fourth quarter and full year 2024 financial results.

The company’s revenue showed a slight decline from 2023, with the fourth-quarter earnings totaling $331.1 million, a 4% drop from the previous year. This included $235.6 million from domestic retail sales, $64.3 million from domestic wholesale operations, and $30.7 million from international markets. Despite these figures, Curaleaf managed to secure $163.3 million in operating cash flow and $70.1 million in free cash flow for the year.

Curaleaf’s CEO, Boris Jordan, acknowledged the financial challenges but remains optimistic. “Over the past two quarters, my primary objective has been to amplify our strengths, address key challenges, and stabilize the business,” he stated. “Having successfully achieved this, we are now forging ahead with our ‘Return to our roots’ initiative – an ambitious strategy centered on driving organic growth, optimizing margins and cash flow, and reducing debt.”

Despite the challenges, Curaleaf has not shied away from expansion. In late 2024, it opened two more dispensaries in Florida, reaching a total of 66 in the state and 151 nationwide. The company also entered the German cannabis market, rebranded three dispensaries in Nevada, and secured a $40 million loan. Additional, in early 2025, Curaleaf introduced a new hemp-based beverage line in collaboration with Total Wine and launched a new cannabis brand, Reef, in Florida.

#3: Glass House

Glass House Brands Inc. (CBOE CA: GLAS.A.U) (OTCQX: GLASF) announced a new $50 million senior secured credit facility, a strategic move aimed at refinancing its previous $41 million loan and enhancing its financial position. The new loan extends the company’s debt maturity to 2030, with a balloon payment of $40 million due at the end of the term.

The loan carries a fixed interest rate of 8.58%, significantly lower than the company’s previous borrowing rate. For the first two years, payments will be interest-only, allowing Glass House to preserve $13.1 million that would have been used for principal payments in 2025 and 2026. Principal and interest payments will then be made over the last three years, based on a 15-year amortization schedule.

Kyle Kazan, Co-Founder, Chairman, and CEO of Glass House, emphasized the advantages of the deal. “Refinancing the credit facility strengthens our balance sheet, significantly improves our cash flow, and pushes out the maturity of our senior secured debt into 2030. By negotiating this facility directly with the lender, we have continued our tradition of cutting costs by arranging our own financing,” he said.

To secure the loan, Glass House provided a first-priority lien on its Camarillo, Padaro, and Casitas greenhouse farms, as well as other company assets, excluding additional real estate holdings. Additionally, the company must maintain a minimum liquidity of $10 million in an account at the lending institution throughout the loan’s duration.

Another key requirement is a Consolidated Fixed-Charge Coverage Ratio of at least 1.25x, tested quarterly on a trailing twelve-month basis. With this new financing in place, Glass House aims to continue its rapid expansion and strengthen its financial position.

#4: Safe Harbor Financial

SHF Holdings, Inc., (Safe Harbor Financial) (NASDAQ: SHFS) announced it had successfully modified its debt agreement with Partner Colorado Credit Union, a move that unlocks over $6 million in cash flow and extends the repayment deadline to 2030. The deal comes as the company navigates a challenging financial period and transitions to new leadership under new CEO, Terry Mendez, who succeeded Sundie Seefried following her retirement in early February.

The new debt agreement modifies the original terms by offering a two-year interest-only payment period, which will be in effect until February 2025. This move allows Safe Harbor to divert funds that would have gone toward the loan’s principal into more immediate business needs, providing significant financial relief. The company’s interest rate remains at 4.25% for the duration of the loan, and the repayment deadline has been extended until 2030.

Mendez expressed confidence that this restructuring marked a turning point for the company. “Not only does the note modification significantly enhance our financial standing, but it also provides Safe Harbor with tremendous optionality as we enter this new chapter,” he stated.

Despite these positive changes, Safe Harbor has faced considerable financial difficulties in recent months. The company reported a 19.6% revenue decline and a working capital deficit of $2.5 million in its September 2024 quarterly report. Much of these challenges stem from the company’s controversial merger with Rockview Digital Solutions, Inc, (Abaca), where it paid more than the fair value for assets, leading to fewer accounts and ongoing legal battles over a $3 million debt.

Nonetheless, with this restructuring in place, Safe Harbor aims to stabilize its financial standing and explore new growth opportunities, signaling a fresh chapter under Mendez’s leadership.

#5: Organigram

Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), a prominent Canadian cannabis producer, closed the final tranche of a significant CA$124.6 million funding round. This investment, which is from BT DE Investments, a subsidiary of British American Tobacco p.l.c. (BAT) (NYSE: BTI), has helped accelerate Organigram’s international expansion.

The final tranche saw BAT acquire approximately 7.6 million common shares and 5.3 million Class A preferred shares of Organigram. The purchase, which was CA$3.2203 per share, resulted in gross proceeds of CA$41.5 million. This concluded a three-part investment agreement between the two companies, which was aimed at supporting Organigram’s strategic growth.

The funds are being channeled into the “Jupiter” investment pool, a fund designed to enhance Organigram’s international market presence, particularly in the U.S. and overseas. With the pool now fully funded, Organigram has an additional CA$57.8 million available for future investments.

Chief Strategy Officer Paolo De Luca commented on the strategic value of the investment, stating, “Opportunities in the space have only improved with cannabis valuations at historically weaker levels…We look forward to continuing our international strategy supported by the Jupiter platform.”

Already, Organigram has invested CA$21 million in the German cannabis company Sanity Group and CA$2.7 million in the North Carolina-based cannabinoid manufacturer Open Book Extracts. These investments highlight the company’s commitment to broadening its footprint in the global cannabis industry.

In total, the entire funding round, which included the first two tranches that were closed earlier, brings Organigram closer to realizing its goal of establishing a significant presence in the international cannabis market. BAT now holds a considerable stake in Organigram, including 30% of the common shares and all the preferred shares, positioning them as a key partner in the company’s future growth.

Top Psychedelic Companies for Week

#1: Revive Therapeutics

Revive Therapeutics Ltd. (OTCQB: RVVTF) (CSE: RVV) announced its intent to acquire DiagnaMed Holdings Corp.’s (CSE: DMED) (OTCQB: DGNMF) intellectual property related to DiagnaMed’s molecular hydrogen program, aiming to develop potential treatments for neurological and mental health disorders from the program. The acquisition is based on a non-binding letter of intent dated February 28, 2025, and is expected to be finalized by the end of March.

The acquisition deal includes a provisional patent application filed with the U.S. Patent and Trademark Office. This patent, which was titled “Methods and Compositions for Producing Hydrogen for Treating Diseases and Disorders Affecting Brain Health,” details pharmaceutical methods using molecular hydrogen as a therapeutic option for neurological conditions such as Dementia, Parkinson’s disease, Traumatic Brain Injury, Depression, Anxiety, and Post-Traumatic Stress Disorder (PTSD).

As part of the deal, Revive will also acquire DiagnaMed’s research assets related to amyotrophic lateral sclerosis (ALS), along with the Orphan Drug Designation, which was granted by the U.S. Food and Drug Administration (FDA) for molecular hydrogen in ALS treatment.

Revive’s CEO, Michael Frank, expressed enthusiasm about the deal, stating, “We are excited about advancing the clinical development of molecular hydrogen for brain disorders, specifically as a potential treatment for ALS. The orphan drug designation granted by the FDA for molecular hydrogen in ALS offers hope to patients and families impacted by this debilitating illness.” He further emphasized the company’s commitment to collaborating with ALS researchers, patient advocacy groups, and regulatory experts to ensure a rigorous and expedited path to potential approval.

ALS is a progressive neuromuscular disease that leads to paralysis and respiratory failure, with a life expectancy of only two to six years post-diagnosis. With limited treatment options, Revive aims to leverage molecular hydrogen’s antioxidant and anti-inflammatory properties, which have shown promise in mitigating oxidative stress and inflammation, which are key factors in ALS progression.

In addition to molecular hydrogen, Revive is exploring other therapies, including bucillamine for nerve agent exposure and long-term COVID, as well as psilocybin-based treatments. However, financial challenges persist. The company recently reported an accumulated deficit of C$67 million as of December 31, 2024, with only C$55,415 in cash reserves and a working capital deficit of over C$3 million.

To support its operations, Revive has secured a C$65,000 loan with an 8% annual interest rate. The company’s future depends on securing additional funding or achieving profitability. Despite financial hurdles, the acquisition of DiagnaMed’s molecular hydrogen program marks a significant step in Revive’s pursuit of innovative neurological treatments.

#2: Awakn

Awakn Life Sciences Corp. (CSE: AWKN) (OTC: AWKNF) announced it had entered into an agreement to be acquired by Solvonis Therapeutics plc (LSE: SVNS), which is a UK incorporated LSE-listed innovative biotechnology company focused on developing intellectual property and co-developing therapeutics for mental health and substance use disorders.

Under the agreement, Solvonis will acquire all outstanding common shares, restricted share units (RSUs), and deferred share units (DSUs) of Awakn.

As part of the deal, Awakn shareholders will receive 46.67 Solvonis ordinary shares for each Awakn common share held. The same exchange ratio applies to RSUs and DSUs, while existing Awakn warrants will be converted into Solvonis warrants with adjusted terms. Additionally, Awakn will seek consent from option holders to cancel outstanding stock options.

The acquisition offers several advantages for Awakn shareholders, including a 53.52% premium on the company’s share price prior to the deal announcement and a 37.59% premium over the 90-day average price. Additionally, the transaction will strengthen the combined company’s access to capital through Solvonis’ London Stock Exchange listing and enhance its growth potential, leveraging Solvonis’ larger market capitalization and greater financial resources.

Upon completion, existing Awakn and Solvonis shareholders will hold approximately 47.47% and 52.53% of the combined company, respectively. The transaction is subject to shareholder and regulatory approvals, including clearance from the UK Financial Conduct Authority and the Supreme Court of British Columbia.

Anthony Tennyson, CEO of both Awakn and Solvonis, recused himself from voting on the transaction, which was unanimously approved by the boards of both companies. According to the company, Awakn’s independent Special Committee reviewed the deal and, after consulting financial advisors Evans & Evans, Inc., confirmed that the offer is fair and in the best interest of Awakn shareholders.

Over 50% of Awakn shareholders have already agreed to support the transaction, which is expected to close in the second quarter of 2025. Upon completion, Awakn will delist from the Canadian Securities Exchange and cease to be a reporting issuer in Canada.

Key Takeaways; Cannabis Sector

• Canopy Growth announced $200 million stock offering for funding expansion
• Cronos Group had a remarkable turnaround reporting $40M profit in 2024
• Verano faced revenue decline and increased losses in 2024, the company plans cost reduction in 2025
• Trulieve reported strong fourth quarter performance, exceeding revenue expectations
• Green Thumb surpassed expectations with strong Q4 performance

Key Takeaways; Psychedelic Sector

• Solvonis Therapeutics to Acquire Awakn Life Sciences in major biotech deal
• Compass Pathways faced deepening losses ahead of key clinical results

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: Canopy Growth

Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) unveiled a new at-the-market (ATM) equity program to issue and sell up to $200 million worth of stock in the U.S. and Canada. According to the company, the proceeds will be used for internal investments, acquisitions, and general corporate purposes, including debt repayment.

According to a company press release, the shares will be sold through the Nasdaq, the Toronto Stock Exchange, or any other available trading market. “The shares will be distributed at market prices prevailing at the time of each sale,” Canopy Growth stated, emphasizing that the pricing will fluctuate based on the market.

The Canadian cannabis giant is strategically planning to strengthen its business operations and financial position. In its most recent quarter, Canopy reported a net loss of C$121.9 million and total debts of C$442 million.

Canopy Growth has also been making significant moves to establish a presence in the U.S. market through its subsidiary, Canopy USA. In January, the company appointed Brooks Jorgensen as president of this division, following the completion of acquisition deals with Wana Brands and Acreage Holdings.

The company clarified that the new offering is subject to market conditions and regulatory approvals, with the ATM program running until the earliest of the full issuance of shares, regulatory cessation, or July 2026. “The timing and volume of sales under the ATM program will be at our sole discretion,” Canopy Growth stated.

#2: Cronos Group

Toronto-based cannabis company Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) reported an impressive financial turnaround, closing 2024 with a net profit of $40 million. This marked a significant recovery from 2023, when the company reported a $70.4 million net loss.

Cronos’s CEO, Mike Gorenstein, credited the company’s success to “innovation, quality, and disciplined cost management.” He emphasized that the focus is now on “sustaining momentum” and expanding internationally beyond its existing markets in Canada, Germany, Israel, and the United Kingdom.

Cronos reported net revenue of $30.3 million in Q4 2024, reflecting a 27% year-over-year increase. For the full year, revenue reached $117.6 million, a 35% increase. According to the company, this growth was largely driven by strong cannabis flower and extract sales in Canada and Israel.

Cronos GrowCo, the company’s cultivation division, also made notable strides, contributing $6.4 million in wholesale revenue for the year, which was an improvement from zero sales in 2023. With Cronos GrowCo’s facility expansion set to be completed by Q2 2025, the first harvest from GrowCo’s enhanced facilities is expected in late 2025.

Moreover, the company’s Spinach-brand edibles dominated the Canadian market, securing a 23% market share in cannabis edibles. Five of the top ten best-selling gummies in Canada came from the Spinach Sourz product line. Additionally, during the quarter, Peace Naturals became the leading medical marijuana brand in Israel with a 24% market share and successfully launched in the UK.

With $1.1 billion in total assets as of 2024, including $859 million in cash, and only $55.3 million in liabilities, Cronos is well-positioned for continued expansion. As Gorenstein put it, “We are not just leading today; we’re building the foundation for long-term excellence in the global cannabis industry.”

#3: Verano Holdings

Verano Holdings Corp. (Cboe CA: VRNO) (OTCQX: VRNOF), a Chicago-based multistate cannabis operator, reported a decline in revenue for the fourth quarter of 2024, generating $218.2 million, an 8% drop compared to the previous year. According to the company, the decline was largely due to intensified competition in key markets like Illinois and New Jersey. As a result, the company’s revenue fell slightly short of analyst’s expectations, missing the projected $218.9 million.

The net loss for the quarter surged to $272.7 million, significantly higher than the $77.2 million loss recorded a year earlier. Verano attributed the increased loss to impairment charges of $327.7 million related to fixed assets, license values, and goodwill. Despite this setback, CEO George Archos remained optimistic. “I am tremendously proud of our team’s resilience in 2024,” he stated, emphasizing strategic expansions, including entry into Virginia, growth in Arizona, and the launch of 17 new dispensaries across six key markets.

For the full year, Verano generated $878.6 million in revenue, a 6% decrease from 2023. The company cited market saturation and temporary cultivation shifts in Florida as major contributors to the decline. Nevertheless, it maintained a strong adjusted EBITDA of $62.9 million in Q4, accounting for 29% of revenue, while cash flow from operations increased to $44 million, up from $32 million in the same period of 2023.

Looking ahead to 2025, Verano announced plans to implement cost-saving measures, which will significantly reduce capital expenditures to between $25 million and $40 million, a solid improvement compared to $99 million spent in 2024.

#4: Trulieve

Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF), a leading U.S. cannabis company, reported impressive fourth-quarter financial results for 2024, surpassing analyst expectations with revenue of $301 million. This was a 5% increase from the same period in 2023, exceeding the average estimate of $292.44 million. The company also posted a full-year revenue of $1.186 billion, slightly above the projected $1.18 billion.

Trulieve CEO, Kim Rivers, praised the company’s performance, stating, “The team set the bar for operational excellence, delivering industry-leading margins and record cash flow.”

One of the key highlights of Trulieve’s success was its ability to improve profitability. The company reported a 62% gross margin in Q4, a significant jump from 54% in the same period as 2023. Throughout 2024, Trulieve generated $271 million in cash from operations and recorded $150 million in free cash flow. Additionally, the company ended the year with $300 million in cash and short-term investments, showcasing its solid financial position.

Despite reporting a net loss of $155 million for the year, which was substantially better than the $527 million loss in 2023, the company’s adjusted EBITDA reached $420 million, accounting for 35% of total revenue. Rivers emphasized the company’s strategic advantage, saying, “With our scaled operations, financial strength, and loyal customer base, Trulieve stands out as an industry leader with a differentiated strategy.”

Trulieve’s robust expansion was another highlight, throughout the year, Trulieve expanded its retail presence, adding 33 new dispensaries and bringing its total to 225 locations across the U.S. The company also launched adult-use cannabis sales in Ohio and introduced Onward, a premium non-alcoholic THC beverage available for purchase in 36 states.

With operations in 229 retail dispensaries and over four million square feet of cultivation and processing capacity across the U.S., Trulieve remains a dominant player in key markets like Florida, Arizona, and Pennsylvania.

#5: Green Thumb

Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) reported record-breaking financial results for the fourth quarter and full year of 2024, exceeding analysts’ expectations. The Chicago-based company achieved substantial revenue growth and profitability, which was driven by expansion in key markets and new store openings.

GTI’s revenue for Q4 rose by 5.8% year-over-year to $294.3 million, surpassing the projected $288.19 million. Full-year revenue saw a 7.8% increase, reaching $1.1 billion.

Additionally, net income skyrocketed in Q4, more than tripling to $12.7 million, while annual net income surged by 102% to $73.1 million. Green Thumb CEO, Ben Kovler, highlighted the industry’s momentum, stating, “Demand for THC in America is at an all-time high, and Green Thumb is well-positioned to deliver on this opportunity.”

Retail expansion played a key role in the company’s success. In Q4, GTI opened three new RISE dispensaries in Florida, Minnesota, and Nevada, bringing its total to 101 locations by year-end. Retail revenue grew modestly, while the company’s consumer packaged goods segment saw a more significant rise of 19.9% in Q4 and 15.9% for the full year, fueled by strong performances in New Jersey, New York, and Ohio.

The company’s operational efficiencies helped counteract pricing pressures, improving its gross margin to 53.7%. President Anthony Georgiadis expressed confidence in GTI’s strategy, saying, “We are confident that our focus on thoughtful capital allocation, operational excellence, superior product quality, and brands that resonate with consumers is a winning combination.”

GTI ended 2024 with a solid financial position, holding $171.7 million in cash, this was despite the company allocation capital to repurchase $43 million worth of shares in 2024 under its buyback program. However, the total outstanding debt was $255 million, but the company reaffirmed that it remains committed to sustainable growth in an expanding market.

Top Psychedelic Companies for Week

#1: Awakn

Awakn Life Sciences Corp. (CSE: AWKN) (OTC: AWKNF) announced it had entered into an agreement to be acquired by Solvonis Therapeutics plc (LSE: SVNS), which is a UK incorporated LSE-listed innovative biotechnology company focused on developing intellectual property and co-developing therapeutics for mental health and substance use disorders.

Under the agreement, Solvonis will acquire all outstanding common shares, restricted share units (RSUs), and deferred share units (DSUs) of Awakn.

As part of the deal, Awakn shareholders will receive 46.67 Solvonis ordinary shares for each Awakn common share held. The same exchange ratio applies to RSUs and DSUs, while existing Awakn warrants will be converted into Solvonis warrants with adjusted terms. Additionally, Awakn will seek consent from option holders to cancel outstanding stock options.

The acquisition offers several advantages for Awakn shareholders, including a 53.52% premium on the company’s share price prior to the deal announcement and a 37.59% premium over the 90-day average price. Additionally, the transaction will strengthen the combined company’s access to capital through Solvonis’ London Stock Exchange listing and enhance its growth potential, leveraging Solvonis’ larger market capitalization and greater financial resources.

Upon completion, existing Awakn and Solvonis shareholders will hold approximately 47.47% and 52.53% of the combined company, respectively. The transaction is subject to shareholder and regulatory approvals, including clearance from the UK Financial Conduct Authority and the Supreme Court of British Columbia.

Anthony Tennyson, CEO of both Awakn and Solvonis, recused himself from voting on the transaction, which was unanimously approved by the boards of both companies. According to the company, Awakn’s independent Special Committee reviewed the deal and, after consulting financial advisors Evans & Evans, Inc., confirmed that the offer is fair and in the best interest of Awakn shareholders.

Over 50% of Awakn shareholders have already agreed to support the transaction, which is expected to close in the second quarter of 2025. Upon completion, Awakn will delist from the Canadian Securities Exchange and cease to be a reporting issuer in Canada.

#2: Compass Pathways

Compass Pathways plc (NASDAQ: CMPS) reported a significant increase in its financial losses for full-year 2024, with net losses reaching $155.1 million, compared to $118.5 million in the previous year. However, the company remains focused on a pivotal milestone: the phase 3 trial results for its psilocybin-based therapy, COMP360, which is expected in the second quarter of 2025.

Despite the widening losses, Compass CEO Kabir Nath remains optimistic. “We are excited that the first data readout from our pivotal phase 3 COMP360 program in treatment-resistant depression continues on track with top-line 6-week data expected next quarter,” he stated.

In an effort to streamline operations, Compass undertook a major restructuring in October, cutting 30% of its workforce and halting early-stage research projects. This strategic shift aimed to concentrate resources on COMP360. The restructuring followed leadership changes earlier in the year and delays in clinical timelines.

The company’s research and development expenses surged to $119 million, up from $87.5 million in 2023, driven by costs associated with late-stage clinical trials and higher personnel expenses. Administrative costs also rose to $59.2 million from $49.4 million.

At the close of 2024, Compass held $165.1 million in cash, down from $220.2 million a year prior. However, an additional $140.4 million was secured in the first quarter of 2025. The company projects operational spending of $120 million to $145 million in the coming year and believes its current funds will sustain operations at least until the latter half of 2026, when COMP006 trial results are expected.

Key Takeaways; Cannabis Sector

• Scotts Miracle-Gro will finally separate its cannabis arm, Hawthorne, into a stand-alone cannabis business
• High Tide narrowed losses in 2024 amid record revenue and expansion plans

Key Takeaways; Psychedelic Sector

• Awakn announced advances in novel therapies for alcohol use disorder and PTSD
• atai reported promising results from BPL-003 study for alcohol use disorder
• Optimi Health expanded global psychedelic reach with a record MDMA batch; the company also secured new funding
• Enveric Biosciences raised $5 million in a public offering, triggering a market slide

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: Scotts Miracle-Gro

The Scotts Miracle-Gro Company (NYSE: SMG) announced that it had officially decided to separate its marijuana unit, Hawthorne Gardening Co., into an independent business. The move, which was announced during the company’s recent earnings call, marked a shift in strategy for Scotts Miracle-Gro CEO, Jim Hagedorn, who has previously defended keeping the volatile division within the parent company.

“This is not like we’re looking to get rid of it,” Hagedorn assured analysts. “We’re looking to focus our investments in the best configuration possible for our shareholders.”

The decision comes as Hawthorne struggles with declining revenue, reporting a 35% drop to $52 million in the first fiscal quarter. Despite the downturn, executives believe the separation will provide tax advantages and better credit access for Hawthorne while shielding Scotts from the volatility of the cannabis industry.

Chris Hagedorn, who leads Hawthorne and recently became Scotts’ executive vice president and chief of staff, will continue managing the unit post-separation. “Moving Hawthorne out of Scotts Miracle-Gro is better for everyone,” he said, adding that the move could enhance the company’s price-to-earnings multiple.

The company’s board must approve the decision, and initial asset transfers could happen within the next two months. Despite the transition, Scotts executives assured investors that their fiscal 2025 targets would remain unaffected.

The decision will conclude a complex chapter in Scotts’ involvement with cannabis. Since acquiring Hawthorne in 2014, the company built it into North America’s largest hydroponics supplier. However, as state-licensed markets matured and wholesale prices declined, Hawthorne struggled to maintain its momentum.

By spinning off Hawthorne, Scotts aims to create a clearer investment structure and unlock greater value for shareholders in both businesses.

#2: High Tide

Canadian cannabis company High Tide Inc. (NASDAQ: HITI) (TSXV: HITI) reported a C$3.8 million net loss for its fiscal year ending October 31, 2024, a significant improvement from the C$40.9 million loss recorded in 2023. The company credited this turnaround to record-breaking revenue of C$522.3 million, a 7% increase from the previous year.

During the fiscal year, High Tide continued its growth trajectory and aggressive expansion, opening 30 new dispensaries across Canada, bringing its total footprint to 191 stores. The company also expanded its Cabana Club loyalty program, which now boasts 5.3 million members, including 76,000 elite members.

The company’s CEO, Raj Grover, highlighted the company’s diversification and international expansion strategy stating, “We are diversifying our revenue streams to fuel future growth,” he said. As part of this strategy, High Tide recently acquired a majority stake in Germany’s Purecan GmbH, marking its entry into the European market.

High Tide maintains an 11% market share in the five Canadian provinces where it operates, this is despite owning only 5% of the country’s licensed dispensaries. The company also reported six consecutive quarters of positive free cash flow, generating C$21.9 million in 2024, a 217% increase from the previous year.

However, same-store sales remained stagnant, growing by just 0.4% year-over-year. High Tide noted that without non-cash impairment charges, it would have reported a C$1.2 million net profit for the fiscal year.

Looking ahead, the company aims for more growth and expansion. And to support further growth, High Tide secured a C$15 million line of credit in August 2024. The company plans to open 20-30 new stores in 2025, with a long-term vision of reaching 300 retail locations across Canada.

Top Psychedelic Companies for Week

#1: Awakn

Awakn Life Sciences Corp. (CSE: AWKN) (OTC: AWKNF), a clinical-stage biotechnology company developing therapeutics for substance use and mental health disorders, announced significant progress in its research and development (R&D) programs. The company is focusing on novel treatments for Alcohol Use Disorder (AUD) and Post-Traumatic Stress Disorder (PTSD), with three main therapies: AWKN-001, AWKN-002, and AWKN-SND-14.

Awakn’s AWKN-001, which is a combination therapy utilizing IV-administered ketamine with relapse-prevention cognitive behavioral therapy, is in Phase 3 trials in the UK. The study, which is co-funded by the UK’s Medical Research Council and the National Institute for Health and Care Research, is managed by the University of Exeter Clinical Trials Unit. If approved under the UK’s Regulation 52b hybrid application, AWKN-001 could receive up to 10 years of market exclusivity.

Meanwhile, AWKN-002, which is an oral thin film formulation of esketamine for sublingual and buccal administration, recently received a positive response from the U.S. Food and Drug Administration (FDA) during a Pre-Investigational New Drug (Pre-IND) meeting. The FDA confirmed that no additional clinical data are needed before progressing to a Phase 2b trial for moderate to severe AUD patients. Awakn plans to file an Investigational New Drug (IND) application in the second half of 2025, with the Phase 2b trial expected to commence in early 2026.

Awakn CEO, Anthony Tennyson, remarked on this significant news, “The FDA’s support for our development strategy marks a significant milestone. This feedback provides us with a clear and efficient path forward for AWKN-002, addressing a substantial unmet medical need.”

In the area of trauma-related disorders, Awakn is developing AWKN-SND-14, a series of serotonin, dopamine, and noradrenaline modulators aimed at treating PTSD and related conditions. AWKN-SND-14, which is designed to promote pro-social behavior and improve trust, empathy, and social bonding, aims to enhance therapy outcomes and help individuals overcome social isolation.

“Our ongoing work with AWKN-SND-14 is especially promising,” Awakn’s Chief Research Officer, Prof. David Nutt, noted. “By targeting the underlying mechanisms of PTSD, we hope to develop a safer, more effective treatment for individuals suffering from trauma-related disorders.”

With these promising developments, Awakn is advancing its three major programs toward clinical approval. And as the company continues its clinical efforts, its innovative treatments for AUD and PTSD could offer hope to millions struggling with these conditions.

#2: atai

Atai Life Sciences N.V. (NASDAQ: ATAI) recently announced positive topline results from Beckley Psytech’s Phase 2a open-label study of BPL-003, an intranasal formulation of 5-MeO-DMT benzoate, for alcohol use disorder (AUD). The study involved 12 patients with moderate to severe AUD, and the findings suggest that a single dose of BPL-003, combined with relapse prevention therapy, can significantly reduce alcohol consumption and promote sustained abstinence.

According to the findings, alcohol consumption dropped from an average of 9.3 units per day to just 2.2 units in 12 weeks. The percentage of heavy drinking days (HDDs) plummeted from 56% to 13%, while abstinent days rose from 33% to 81%. Notably, half of the participants maintained complete abstinence throughout the 12-week period.

Dr. Srinivas Rao, CEO and Co-founder of atai, expressed optimism about the study’s outcome, stating, “We are encouraged by these exploratory results, which demonstrate the potential of short in-clinic psychedelic therapies to transform the treatment of substance use disorders. The high rates of sustained abstinence in this study are particularly promising given the significant challenges AUD patients face in maintaining sobriety”.

Atai also reported that the drug was well-tolerated, with no severe or serious adverse events. According to the report, most patients were deemed ready for discharge within two hours of administration. Beckley Psytech is now exploring further development of BPL-003 for substance use disorders and plans to present additional clinical data throughout 2025.

These promising results add to growing evidence supporting psychedelic therapies in mental health treatment.

#3: Optimi Health

Optimi Health Corp. (CSE: OPTI) (OTCQX: OPTHF) bolstered its position in the psychedelic pharmaceutical space with a major MDMA production milestone and a fresh capital injection of nearly C$1 million. The Canadian drugmaker, which is licensed by Health Canada, completed its largest production batch of MDMA to date; over 4,000 GMP capsules, which is sufficient to treat more than 1,000 patients worldwide.

In a press release, the company’s CEO, Dane Stevens, highlighted the company’s market edge, emphasizing the cost-effectiveness and stability of Optimi, stating, “Our customer feedback is that our MDMA is often more affordable than other limited options in the market. We are excited to be producing stable inventory in-house under our Drug Establishment Licence.”

The company’s latest production run supports global treatment initiatives, including Australia’s Authorized Prescriber Scheme for PTSD, a Phase 2 clinical trial in Israel, and Special Access Program (SAP) requests in Canada. Optimi is also extending its stability testing program to validate a two-year shelf life for its MDMA capsules.

In addition to its production expansion, Optimi recently raised C$934,000 through a private placement, with insider participation, and settled C$98,500 in marketing-related debt via equity issuance. The financing, which was structured at C$0.30 per unit, included half-warrants that have an exercise price of $0.40 until January 2027.

#4: Enveric Biosciences

Enveric Biosciences, Inc. (NASDAQ: ENVB) executed a strategic financial maneuver that resulted in mixed market reactions. Just days after the company announced 1-for-16 reverse stock split on Tuesday, January 28, 2025, which was aimed at maintaining its Nasdaq listing requirements, the company raised $5 million through a public offering on Thursday. However, the move caused its newly consolidated shares to plummet by over 40% in pre-market trading on Friday, January 31, 2025.

The public offering involved the issuance of 1.67 million shares priced at $3 each, significantly lower than the previous day’s split-adjusted closing price of $3.90. Additionally, investors received Series A and B warrants, which will expire in five years and 18 months, respectively.

Despite the stock market woes, Enveric recently secured a Notice of Allowance from the U.S. Patent and Trademark Office for its lead neuroplastogenic compound, EB-003. The drug is being developed to treat treatment-resistant depression and anxiety while eliminating hallucinogenic effects, which has been an innovation in psychedelic-inspired therapeutics.

The company’s CEO, Joseph Tucker, emphasized the significance of this development, stating: “EB-003 potentially offers the opportunity to administer treatment without requiring a healthcare professional to be present during treatment, which would be a paradigm shift compared to first-generation psychedelics.”

While the stock decline raises concerns, Enveric reaffirmed that it remains focused on leveraging its recent patent milestone and financial infusion to push forward in the mental health treatment space.

Key Takeaways; Cannabis Sector

• Ascend Wellness secured $15 million to boost growth
• Leafly Holdings transitioned to OTC trading after Nasdaq delisting
• High Tide expanded into Germany with strategic acquisition 

Key Takeaways; Psychedelic Sector

• MindMed provided investor update with detailed plans for 2025 and beyond
• Awakn secured unsecured credit facility to support research and development

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

Top Marijuana Companies for the Week

#1: Ascend Wellness

Cannabis multistate operator Ascend Wellness Holdings, Inc. (CSE: AAWH-U) (OTCQX: AAWH) closed a $15 million private placement of senior secured notes, reinforcing its commitment to growth amid challenging market conditions. The notes, which were issued at 97% of their face value, carry a 12.75% interest rate and mature in July 2029. This funding is part of a $235 million definitive agreement that the company signed in July 2024, which was termed as one of the cannabis sector’s largest financing offering.

Ascend Wellness plans to use the new capital for “general corporate purposes, including funding growth initiatives,” according to a news release. CEO Sam Brill emphasized the company’s vision for expansion, stating, “Our strategy is clear. We are well-positioned with the resources necessary to expand our presence in our core markets through diversification initiatives that maximize the value of our existing assets.”

Brill, who stepped into his role in August, highlighted plans to open 20 new stores, expanding Ascend’s retail footprint by 50%. The company currently operates nearly 40 medical and adult-use cannabis stores across seven states and markets brands like Common Goods, Simply Herb, and Ozone Reserve.

This funding comes as Ascend grapples with financial pressures. Despite reporting a slight 0.3% sales growth to $141.6 million in the third quarter of 2024, the company faced widening losses, which more than doubled to $28.3 million. Additionally, during the third quarter financial report the company said it was facing market pressures and increased competition in select regions, which led Ascend to revise its annual revenue growth projection from 12-15% to a more modest outlook.

To bolster growth amid the financial challenges, Brill and CFO Roman Nemchenko have launched a cost-saving initiative to reduce annual expenses by $30 million. Measures include cutting staff at offices and stores, optimizing infrastructure, and improving operational efficiency. 

#2: Leafly Holdings

Cannabis e-commerce platform Leafly Holdings, Inc. (NASDAQ: LFLY) was delisted from the Nasdaq stock exchange as of January 17, 2025, after failing to meet the exchange’s minimum net income requirement of $500,000 from operations. This marked another challenge for the Seattle-based company, which has faced declining revenues, reduced retail accounts, and mounting financial pressures. In its most recent quarter, revenue dropped to $8.4 million from $10.5 million the previous year, while the number of retail accounts fell by 20% to 3,554.

In a press release, Leafly CEO, Yoko Miyashita, emphasized that debt management remains a priority for the company. And to address immediate financial obligations, the company had reached an agreement with the holders of its 8% convertible senior notes to extend the maturity date from January 31 to July 1, 2025. As part of the arrangement, Leafly will pay down 12.5% of the outstanding principal and grant a first-priority security interest in its assets to secure the notes. “The extension provides us breathing room to continue stabilizing the business,” Miyashita said.

Despite the company undertaking significant restructuring efforts, which included cutting staff by nearly half, shuttering its news division in 2023, and consolidating its shares on a 20-to-1 basis, Leafly reported having only $13.5 million in cash against $34.1 million in liabilities as of September 2024. Miyashita cited payment delinquencies, which accounted for 40% of lost monthly recurring revenue, as a major challenge. Despite these difficulties, Miyashita offered a note of optimism, stating in November that “the most significant challenges in the retail business are behind us,” pointing to stabilizing revenues and retail accounts.

Leafly joins a growing list of cannabis-related companies that have exited major exchanges due to challenges with the listing requirements. Similar moves include Clever Leaves Holdings Inc. (OTC: CLVR), which voluntary delisted from Nasdaq in early 2024, and Bright Green Corporation (OTC: BGXX), which was suspended from the Nasdaq stock exchange  in September 2024.

Leafly’s shares and warrants will now trade on the OTC Pink Open Market under the ticker symbols LFLY and LFLYW. The switch to the less prestigious OTC market is expected to reduce liquidity, decrease institutional investor interest, and make raising capital more challenging.

#3: High Tide

Canadian cannabis retailer High Tide Inc. (NASDAQ: HITI) (TSXV: HITI) announced its entry into the German medical marijuana market through the acquisition of a 51% stake in German pharmaceutical wholesaler Purecan GmbH. The €4.8 million ($4.9 million) deal included a combination of cash, shares, and a promissory note, and provides High Tide with an option to acquire the remaining interests in Purecan within five years. The acquisition is expected to close in the coming weeks.

Raj Grover, Founder and CEO of High Tide, highlighted the strategic importance of the acquisition. “With almost half of all German medical cannabis imports coming from Canada, this acquisition paves the way for us to emerge as a leading supplier of medical cannabis from Canada into Germany, potentially replicating our market share success in Canada,” he said.

The deal structure included €2.4 million in High Tide common shares, priced at C$4.53 (adjusted using the Bank of Canada exchange rate), and €1.2 million in cash. Additionally, a €1.2 million promissory note was also part of the agreement, with the note having a two-year maturity and an annual interest rate of 7%.

Purecan, which is based in Frankfurt, is a profitable importer of medical cannabis and holds a European wholesale and import license. The company also operates warehousing and logistics infrastructure and is preparing to launch a telemedicine platform for German medical cannabis patients. 

Dr. Ehsan Omari, Chief Medical Officer at Purecan, also expressed enthusiasm for the partnership. “Demand for medical cannabis in Germany is currently outpacing supply. This merger provides Purecan with a unique opportunity to tap into High Tide’s unmatched procurement expertise and relationships with Canadian licensed producers,” he said.

Germany has become one of the largest importers of medical cannabis globally, with Canadian producers supplying nearly 50% of the imports. The country’s medical cannabis market has seen rapid growth since the passage of the Consumer Cannabis Act in April 2024, which made it easier for patients to access medical marijuana prescriptions.

According to the recent Prohibition Partners’ “The German Cannabis Report,” Germany’s medical cannabis sales are projected to surpass €420 million in 2025 and could reach €1 billion by 2028. The report also noted a 30% increase in sales during the third quarter of 2023, which accelerated further following the passage of the new legislation.

This market potential highlights why Raj Grover views the acquisition as a pivotal and strategic entry into Germany’s expanding cannabis industry. “This highly accretive acquisition provides immediate market entry into Germany while we explore opportunities for consumer research with the Food and Drug Agency, aligning with the ordinance recently signed by Germany’s agriculture minister,” Grover stated.

Top Psychedelic Companies for Week

#1: MindMed

Psychedelic drug company Mind Medicine (MindMed) Inc. (NASDAQ: MNMD) released its 2025 Corporate Presentation, offering investors an in-depth look at its upcoming initiatives and plans for commercialization. The company, which previously boasted a strong cash cushion, reported that it had now added a significant $250 million equity investment to its strategy. This additional funding is expected to bolster MindMed’s clinical trials and commercialization efforts in the coming years.

MindMed also stated that it is advancing two crucial Phase 3 studies for its MM120 lysergide D-tartrate (LSD) drug in 2025, targeting generalized anxiety disorder (GAD) and major depressive disorder (MDD). The Panorama study for GAD is set to begin in the first half of 2025, while the Emerge study for MDD is also scheduled for the same period. 

Furthermore, the Voyage Phase 3 trial for GAD has already commenced, with its Phase 3 readout expected in early 2026. In December 2024, MindMed announced that the first patient had been dosed in the Voyage study. This trial evaluates the safety and efficacy of MM120 ODT against a placebo, and plans to enroll approximately 200 participants in the U.S.

In terms of regulatory progress, MindMed said it had achieved a significant milestone in March 2024 when the FDA granted Breakthrough Therapy Designation for MM120. This designation is expected to accelerate the development and review process for the drug. Additionally, in December 2024, MindMed secured an Innovation Passport from the U.K. Medicines and Healthcare Products Regulatory Agency (MHRA) for the potential treatment of GAD. This Innovation Passport is part of the Innovative Licensing and Access Pathway (ILAP), which aims to streamline patient access to new treatments in the U.K.

The company also outlined its prelaunch strategy for MM120, which will include strategic partnerships with clinics, education campaigns to inform stakeholders on the unmet needs in GAD and MDD, and collaboration with existing reimbursement frameworks. 

With these updates, MindMed is positioning itself for continued growth in the psychedelic pharmaceutical market. The company aims to make significant progress with its drug pipeline while preparing for the commercialization of MM120 as a potential breakthrough treatment for mental health conditions such as GAD and MDD. 

#2: Awakn

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

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

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

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

Key Takeaways; Cannabis Sector

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

Key Takeaways; Psychedelic Sector

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

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

Top Marijuana Companies for the Week

#1: Tilray

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

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

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

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

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

#2: Safe Harbor

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

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

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

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

#3: Agrify

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

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

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

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

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

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

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

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

#4: Canopy Growth

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

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

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

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

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

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

Top Psychedelic Companies for Week

#1: atai

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

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

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

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

#2: Awakn

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

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

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

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

Key Takeaways; Cannabis Sector

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

Key Takeaways; Psychedelic Sector

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

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

Top Marijuana Companies for the Week

#1: Vireo Growth

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

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

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

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

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

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

#2: iAnthus

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

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

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

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

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

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

#3: Entourage Health

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

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

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

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

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

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

#4: Cansortium

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

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

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

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

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

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

Top Psychedelic Company for Week

#1: Awakn

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

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

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

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

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

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

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

Key Takeaways; Cannabis Sector

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

Key Takeaways; Psychedelic Sector

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

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

Top Marijuana Companies for the Week

#1: Organigram

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

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

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

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

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

#2: Safe Harbor Financial

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

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

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

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

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

#3: Rubicon Organics

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

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

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

#4: Glass House Brands

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

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

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

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

Top Psychedelic Company for Week

#1: Red Light Holland

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

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

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

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

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

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

#2: Awakn

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

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

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

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

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

Key Takeaways; Cannabis Sector

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

Key Takeaways; Psychedelic Sector

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

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

Top Marijuana Companies for the Week

#1: Agrify

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

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

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

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

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

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

#2: StateHouse Holdings

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

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

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

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

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

#3: Simply Solventless

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

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

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

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

#4: Decibel

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

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

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

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

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

Top Psychedelic Company for Week

#1: Psyence Biomedical

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

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

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

#2: Awakn

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

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

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

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

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

Key Takeaways; Cannabis Sector

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

Key Takeaways; Psychedelic Sector

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

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

Top Marijuana Companies for Week

#1: Agrify

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

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

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

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

#2: TerrAscend

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

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

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

#3: Curaleaf

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

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

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

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

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

#4: Canopy Growth

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

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

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

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

#5: Cresco Labs

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

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

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

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

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

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

Top Psychedelic Company for Week

#1: Relmada Therapeutics

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

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

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

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

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

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

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

#2: Awakn

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

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

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

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

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