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Weekly Roundup on the Cannabis Sector & Psychedelic Sector

Key Takeaways; Cannabis Sector

  • High Tide reported positive free cash flow and growing revenue despite incurring losses.
  • Canopy Growth announced plans to cease funding BioSteel amid restructuring.
  • Innovative Industrial Properties announced Q3 2023 dividends.
  • SNDL launched an e-commerce platform for its liquor retail banner, Wine and Beyond.

Key Takeaways; Psychedelic Sector

  • Awakn released a corporate update on recent progress.

Below is a weekly roundup on 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: High Tide

High Tide Inc. (NASDAQ: HITI), a Canadian cannabis retailer, reported its financial results for the third fiscal quarter of 2023, marking a significant achievement in the challenging marijuana industry. The company reported positive free cash flow of 4.1 million Canadian dollars ($3 million), surpassing its financial forecast and indicating its ability to thrive in a tough market.

High Tide CEO, Raj Grover, expressed his satisfaction, stating that the third fiscal quarter was High Tide’s best in history. “I’m thrilled to report that our third fiscal quarter was the best in High Tide’s history since our inception, as we met our goal of generating positive free cash flow of CA$4.1 million this quarter, five months ahead of our previously communicated timeline and hence becoming less reliant on macro and industry conditions,” Grover said in a press release.

Despite this positive milestone, High Tide reported a net loss of CA$3.6 million for the quarter, up from CA$2.7 million in the same period the previous year. This loss was largely attributed to a revaluation of derivative liabilities. However, total revenue showed strong growth, increasing by 30.4% year-over-year to CA$124.4 million in the quarter.

High Tide also reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of CA$10.2 million, a 140% increase compared to the previous year. Notably, this marked the 14th consecutive quarter of positive adjusted EBITDA for the company.

In terms of market presence, High Tide remains the largest non-franchised cannabis retailer in Canada, with 156 stores and a 9.5% share of the nation’s marijuana retail market, excluding Quebec, which has a retail monopoly.

#2: Canopy Growth

Canadian cannabis producer Canopy Growth Corporation (NASDAQ: CGC) announced its decision to cease funding for its subsidiary, BioSteel Sports Nutrition Inc., and commence a court-supervised sale of the sports nutrition company. This strategic move aligns with Canopy’s ongoing restructuring, as the cannabis giant seeks to enhance profitability and focus on its asset-light cannabis strategy.

Canopy’s CEO, David Klein, explained that although BioSteel had experienced revenue growth, it did not align with Canopy’s asset-light cannabis strategy. Additionally, Klein emphasized Canopy’s commitment to taking decisive actions to enhance profitability and maintain its position as a major player in the North American cannabis sector.

“As while BioSteel’s business has shown significant year-over-year revenue growth, and we believe the brand remains an attractive asset, it does not align with Canopy Growth’s cannabis focused asset-light strategy,” Canopy CEO David Klein said in a statement.

 

“We have repeatedly demonstrated that we will take decisive action to enhance our profitability and ensure we are focused and positioned to be a leader in the North American cannabis sector,” he added.

This decision led BioSteel to enter creditor protection proceedings under the Companies’ Creditors Arrangement Act (CCAA). With BioSteel entering CCAA proceedings, the company aims to conserve cash and preserve its assets by effectively going into “hibernation.” The CCAA process will be utilized to identify a buyer efficiently, and if approved by the court, it will be administered by BioSteel with support from Greenhill & Co. Canada, under the oversight of the monitor, KSV Restructuring.

Canopy Growth’s decision to cease funding BioSteel and initiate a court-supervised sale reflects its commitment to optimizing its cannabis-focused strategy while addressing the financial challenges faced by its subsidiary. This strategic move is part of Canopy’s ongoing transformation as it strives to enhance profitability and leadership in the North American cannabis sector.

#3: Innovative Industrial Properties

Innovative Industrial Properties, Inc. (NYSE: IIPR), a pioneering real estate company with a focus on the regulated U.S. cannabis industry, declared its third quarter 2023 dividends. The company’s board of directors announced a dividend of $1.80 per share for common stock, contributing to a total of $7.20 per common share declared over the past twelve months. This marked a notable increase of $0.40, equivalent to a 6% rise, compared to the dividends declared in the previous twelve months.

In addition to the common stock dividend, IIP’s board of directors also declared a regular quarterly dividend of $0.5625 per share for IIP’s 9.00% Series A Cumulative Redeemable Preferred Stock.

According to the company, these dividends will be disbursed to stockholders on October 13, 2023, with eligibility based on ownership records as of September 29, 2023.

#4: SNDL

SNDL Inc. (NASDAQ: SNDL) announced its foray into the world of e-commerce with the launch of a new online platform for its popular liquor retail banner, Wine and Beyond. According to the company, this move is designed to broaden accessibility and reach for Wine and Beyond’s extensive range of products, which includes rare spirits, both local and international beers, and distinctive wines.

Robbie Madan, Chief Information and Digital Officer at SNDL, expressed excitement about this digital expansion, stating, “We are pleased to extend the Wine and Beyond experience into the digital landscape.” He emphasized that Wine and Beyond stores are known for their exceptional product selection, unique offerings, and knowledgeable staff who provide top-notch customer service.

Wine and Beyond’s online catalogue boast an impressive selection of nearly 9,000 products, with regular additions and new frequent deals. SNDL anticipates that this strategic move will not only enhance its market presence and customer outreach but also contribute to revenue growth.

Top Psychedelic Company for Week

#1: Awakn

Awakn Life Sciences Corp. (OTC: AWKNF), provided a corporate update on its recent developments and announced the closing of the third tranche of its private placement financing. The corporate update indicates that, the Toronto-based biotechnology company, which focuses on treating addiction, particularly Alcohol Use Disorder (AUD), has achieved significant milestones in recent months.

One of the key highlights in Awakn’s corporate update was the successful completion of its exit from healthcare services in August 2023, a move that was announced in June 2023. This strategic move now allows the company to concentrate exclusively on research and development efforts aimed at treating addiction. This transition also led to a reduction in Awakn’s expenses.

In addition to this, Awakn submitted a Clinical Trial Application (CTA) for phase III of its lead program, AWKN-P001, designed for the treatment of Severe Alcohol Use Disorder (SAUD). The phase III clinical trial, set to commence in the UK across ten National Health Service (NHS) sites, will involve 280 participants in a randomized placebo-controlled trial. Awakn has committed approximately GBP £800,000 towards the trial’s costs, with additional funding provided by partners such as the UK National Institute of Health and Care Research (NIHR), the UK Medical Research Council (MRC), and the University of Exeter. Pending ethical and regulatory approvals, the trial is expected to initiate treatment for the first participants in Q1 2024.

Awakn is also making progress in its Zydis®/MDMA feasibility study, which began in March 2023. The study explores a proprietary formulation of MDMA using Catalent’s Zydis® orally disintegrating tablet (ODT) technology. According to the corporate update, the company has completed two out of three planned manufacturing tests and is now advancing to the third manufacturing production run test.

Furthermore, Awakn is expanding its licensing partnership business, providing access to its proven proprietary ketamine-assisted therapy protocol for AUD treatment and additional healthcare services intellectual property. Partner clinics are now located in various regions, including New York and California in the US, Ontario in Canada, Oslo and Trondheim in Norway, London in the UK, and Lisbon in Portugal.

Regarding financing, Awakn initiated a non-brokered private placement financing in April 2023, aiming to raise up to $4,000,000 at CAD$0.46 per unit. Each unit consisted of one common share and three-quarters of one common share purchase warrant, allowing the holder to acquire additional shares at $0.63 per share for five years. The company said in its corporate update that it has now closed the third tranche of this offering, raising $767,215 for this tranche and a total of $2,734,663 for the entire offering.

In conclusion, Awakn’s corporate update indicates that the company is making substantial strides in its mission to develop effective addiction therapeutics and expand its reach in the addiction and mental health treatment space. With ongoing clinical trials, partnerships, and financing, the company remains committed to addressing the challenges posed by addiction and related disorders.

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Weekly Roundup on the Cannabis Sector & Psychedelic Sector

Key Takeaways; Cannabis Sector

  • Green Thumb board of directors authorized a $50 million repurchases program.
  • Cresco launched first-ever cannabis ads campaign on Spotify.
  • Tilray continue cannabis portfolio expansion, amidst share price surge and growing marijuana optimism.
  • Aurora Cannabis completed a $9.0 million repurchase of its convertible senior notes.
  • Verano Holdings announced participation in an upcoming conference.

Key Takeaways; Psychedelic Sector

  • Awakn seeks approval for Phase III trial of AWKN-P001: A promising treatment for severe alcohol use disorder.

In the ever-evolving landscape of the cannabis sector, the past two weeks have been nothing short of a game-changer. The stage was set by a momentous decision from the U.S. Department of Health and Human Services, which sent ripples of optimism throughout the industry. The Department of Health and Human Services made an official recommendation to the Department of Justice, urging them to reclassify marijuana from Schedule 1 to the more favorable Schedule 3 on the federally controlled substances list; a move that holds profound implications for the sector, particularly in its potential to relieve the crippling burden of the 280E tax provision that has weighed down cannabis operators for far too long. This decision sent a wave of excitement and anticipation throughout the cannabis enthusiasts and investors alike.

Below is a weekly roundup on the companies that dominated the news in the cannabis and psychedelic industries during the past week.

Top Marijuana Companies for Week

#1: Green Thumb

Chicago-based Green Thumb Industries Inc. (OTC: GTBIF), a prominent marijuana multistate operator, unveiled a year-long share repurchase program that could see it buy back up to 10.4 million of its outstanding subordinate shares. The move is designed to enhance the value of the company’s remaining shares, which currently number around 200 million.

The company’s board of directors authorized a budget of up to $50 million for the repurchase program, which will commence on September 11, 2023, and continue until September 10, 2024.

Green Thumb’s CEO, Ben Kovler, noted that this decision was made in response to recent developments in the cannabis industry, including news about potential marijuana rescheduling by the U.S. government, which led to a significant increase in cannabis equity prices.

However, Green Thumb emphasized that this buy-back initiative was voluntary and can be terminated or suspended at any time if management believes there are better uses for the company’s cash reserves, “If management determines it has a better use for its cash reserves, it is under no obligation to continue to purchase shares, and share purchases may be suspended or terminated at any time at Green Thumb’s discretion,” the company asserted in the press release.

Green Thumb is one of the few profitable publicly traded cannabis operators in the United States, with a presence in 14 states. This share repurchase program reflects its commitment to creating shareholder value while continuing its growth initiatives.

#2: Cresco Labs

Cresco Labs Inc. (OTC: CRLBF), a leading marijuana multistate operator based in Chicago, recently launched an innovative advertising campaign on the popular music streaming service, Spotify. This strategic move is aimed at targeting Illinois consumers and promoting their Sunnyside cannabis chain. The campaign includes 30-second audio ads and digital banners integrated within the Spotify app.

Spotify Technology S.A. (NYSE: SPOT) boasts an impressive user base of over 551 million users, with 220 million subscribers, making it a prime platform for reaching a vast audience. Cory Rothschild, the national retail president of Cresco Labs, expressed excitement about this partnership, highlighting its significance in normalizing cannabis and demonstrating the high-quality marketing capabilities that Cresco Labs possesses.

“Audio streaming services represent a major opportunity for brands to reach large audiences in a targeted manner, and we’re excited to collaborate with Spotify to launch the first-ever cannabis ads,” Cory Rothschild said in a statement.

Cresco’s decision to advertise on Spotify aligns with a broader trend in the industry, where social media platforms like Facebook, Instagram, and Twitter have started to ease restrictions on marijuana and hemp companies seeking to promote themselves.

#3: Tilray

Tilray Brands, Inc. (NASDAQ: TLRY) a prominent player in the cannabis industry, has made significant strides in recent weeks, capitalizing on a surge in stock prices and expanding its product portfolio. Following an over 36% increase in stock value after the U.S. Department of Health and Human Services urged a reconsideration of marijuana’s classification, Tilray unveiled its ‘Diamonds Collection’ through its premium cannabis lifestyle brand, RIFF.

This collection introduced Diamond Infused Pre-rolls, featuring strains like Melonaide and Purple Punch OG, as well as ’26 Delta Diamond Infused Blunts, which include Blue CKS with Girl Scout Cookies (GSC) lineage and Blueberry Kush.

Building on this momentum, Tilray expanded its market-leading cannabis portfolio with the launch of new flower genetics by the best-selling cannabis lifestyle brand, Redecan. This expansion includes limited-edition strains like King Sherb and Animal RNTZ, both which are meticulously cultivated by master growers.

Blair MacNeil, President of Tilray Canada, expressed excitement about this development, marking a new era for Redecan and their commitment to delivering unparalleled quality and experiences to cannabis consumers across Canada. “We are thrilled to unveil the first Redecan innovation following our acquisition of HEXO Corp. This is a pivotal moment for Redecan, marking a new era in our journey to deliver unparalleled quality and experiences to cannabis consumers across Canada,” said Blair MacNeil.

Tilray’s recent surge in stock prices, coupled with its commitment to innovative product offerings through RIFF and Redecan, underscores the dynamic nature of the cannabis industry. And as the industry continue to evolve, Tilray will remain at the forefront, shaping its future and providing consumers with a diverse range of high-quality cannabis products.

#4: Aurora Cannabis

Aurora Cannabis Inc. (NASDAQ: ACB), a pioneering Canadian cannabis company, gained over 14% in its share price on Friday, after the company made a significant announcement. The company disclosed it had successful repurchased an aggregate of approximately CAD $12.3 million (US$9.0 million) principal amount of its convertible senior notes, in a series of transactions that spanned from August 16 to September 8, 2023.

This strategic move was financed through the issuance of approximately 20.1 million common shares of Aurora. Following these transactions, Aurora now has approximately $53 million (US$39 million) of Notes outstanding.

According to Aurora, the repurchases were aimed at lowering the company’s overall debt burden and annual cash interest expenses, aligning with its commitment to achieving positive free cash flow. Aurora’s management anticipates that these transactions will result in annualized interest payment savings of $0.66 million.

Miguel Martin, Aurora’s CEO, expressed confidence in the company’s financial stability, stating, “As of today, Aurora has reduced its convertible debt from US$345 million to below US$39 million. With one of the strongest balance sheets among Canadian LPs, evidenced by our net cash position and continued commitment to prudent fiscal management, we are confident in our ability to achieve our target of positive free cash flow within calendar year 2024.”

#5: Verano Holdings

Verano Holdings Corp. (OTC: VRNOF), a prominent multi-state cannabis company, is set to take the stage at several major industry conferences this fall. These appearances come as the cannabis industry continues to evolve and expand, as optimism grows following the potential marijuana reclassification. Below is a quick look at where you can catch them:

ATB Life Sciences Institutional Investor Conference – September 20, 2023; Verano’s President, Darren Weiss, and Chief Investment Officer, Aaron Miles, are all set to join the ATB Life Sciences Institutional Investor Conference on September 20, 2023, in New York City.

Benzinga Cannabis Capital Conference – September 27, 2023; As September rolls on, Verano will head to the Benzinga Cannabis Capital Conference on September 27, 2023, in Chicago.

AGP Cannabis Conference – October 4, 2023 (Virtual); In a digital age, Verano is not staying behind. They will be part of the AGP Cannabis Conference on October 4, 2023, in a virtual format.

Jefferies Cannabis Summit – October 25, 2023; To wrap up their conference season, Verano will be at the Jefferies Cannabis Summit on October 25, 2023, in New York City.

These conferences are a big deal for Verano as they provide a platform to share insights, connect with investors, and showcase their dedication to growth and innovation.

Top Psychedelic Companies for Week

#1: Awakn

Awakn Life Sciences Corp. (OTC: AWKNF), a leading player in the field of addiction therapy, especially Alcohol Use Disorder (AUD), made a significant move in the battle against Severe Alcohol Use Disorder (SAUD). On September 6, 2023, the company announced that it had submitted a Clinical Trial Application (CTA) for a phase III trial of its flagship program, AWKN-P001, designed to treat SAUD.

SAUD is the most severe form of alcohol use disorder, affecting approximately 12.5 million people in the United States and several European countries, including Germany, the UK, France, Italy, and Spain.

AWKN-P001 is a novel therapy that combines an N-methyl-D-aspartate receptor-modulating drug (ketamine) with psycho-social support to address SAUD. The results from the phase II study of AWKN-P001 were promising, showing an impressive 86% abstinence rate six months after treatment, compared to only 2% before the trial. In contrast, the current standard of care achieved a 25% abstinence rate.

The phase III trial of AWKN-P001 is a collaborative effort involving Awakn, the University of Exeter, and a partnership between the National Institute of Health and Care Research (NIHR) and the Medical Research Council (MRC). This trial will involve 280 participants and will be a randomized, placebo-controlled study. It will take place in the UK across ten National Health Service (NHS) sites. To support this endeavor, Awakn will contribute approximately GBP £800,000, with the NIHR, MRC, and the University of Exeter covering the rest of the costs.

Anthony Tennyson, CEO of Awakn, expressed his enthusiasm for the project, stating, “We are pleased to be working with our partners in the NIHR, MRC, and the University of Exeter on this program as we together progress AWKN-P001 closer to potentially treating the first participant in the phase III trial. We are also pleased to have secured ILAP designation for AWKN-P001 with which we will look to initiate discussions in the near-term with the MHRA and NICE on our target development plan and market access in parallel to the executing the phase III.”

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Weekly Roundup on the Cannabis Sector & Psychedelic Sector

Key Takeaways; Cannabis Sector

  • Tilray is shaking up the alcoholic beverage sector with acquisitions as they aim to diversify their portfolio.
  • Canopy Growth made more facility sales; the company continued to implement cost-cutting measures in order to stay afloat.
  • Organigram announced entry into the United Kingdom by securing a supply deal.

Key Takeaways; Psychedelic Sector

  • Awakn released corporate presentation: Unveiling breakthroughs in psychedelic therapeutics for addiction treatment.
  • Compass Pathways announced up to $285 million investment.

Below is a weekly roundup on 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: Tilray

Tilray Brands, Inc. (NASDAQ: TLRY) made a strategic move that not only solidifies its position within the cannabis market but also extends its reach into the alcoholic beverage sector. The company recently made a significant move by acquiring the remaining 57.5% of shares in Truss Beverage Co., a THC-infused drink line, from Molson Coors Beverage Company (NYSE: TAP).

This acquisition came just a week after the company made a bold stride into the alcohol industry through the acquisition of several renowned beer brands from brewing giant Anheuser-Busch InBev SA/NV (NYSE: BUD).

Tilray’s decision to enter the beer markets comes at a time when the Canadian cannabis industry is experiencing regulatory shifts that are expected to facilitate the market entry for THC-infused beverages. The potential inclusion of on-tap THC options in restaurants and bars is projected to drive substantial growth in this category. With analyst projecting an untapped Canadian consumer base exceeding 10.6 million and a cannabis beverage retail market worth nearly $100 million.

These acquisitions have yielded positive results for Tilray’s stock, with the company experiencing a significant surged in its share price in the past 2 weeks. And as Tilray continues its expansion into diverse industries, including both cannabis and alcohol, investors are watching closely to gauge the company’s ability to navigate the changing landscape successfully. With its latest acquisition, Tilray aims to not only solidify its presence in the craft beer market but also explore potential synergies between its existing cannabis and alcohol portfolios.

#2: Canopy Growth

Canadian cannabis producer Canopy Growth Corporation (NASDAQ: CGC) recently sold its Hershey Drive facility in Smiths Falls, Ontario, as part of its strategy to simplify its operations and reduce costs. The company is moving towards an asset-light operating model and has sold a total of seven properties, including the Hershey Drive facility, for around C$155 million since April 2023.

The sale of the Hershey Drive property was made to Hershey Canada, Inc. for approximately C$53 million. The property had previously housed Canopy Growth’s headquarters and Tweed Inc. production facilities. The company aims to use the proceeds to primarily pay down the company’s debt.

Canopy Growth’s CEO, David Klein, expressed satisfaction with the facility’s sale, highlighting it as a milestone in their ongoing efforts to enhance their balance sheet and deliver sought-after products with greater efficiency; “We are pleased to have reached an agreement with Hershey on this important sale. This is the latest milestone in our focused effort to reduce costs and further enhance our balance sheet,” said David Klein.

While Canopy Growth is making efforts to streamline its operations and cut costs, the company faces ongoing financial challenges. Despite reporting a reduced adjusted EBITDA loss of C$57.8 million for the first quarter of the fiscal year, there are concerns about the company’s long-term profitability. Additionally, the company disclosed in the financial report that they were holding over C$1 billion in debt, which raised further doubts about its ability to meet financial obligations and achieve a sustainable level of profitability.

As the cannabis industry continues to evolve, Canopy Growth’s financial path remains uncertain. The company’s ongoing attempts to navigate these challenges will be closely watched by both investors and industry observers, as they look for signs of stability and successful adaptation to changing market dynamics.

#3: Organigram

In a groundbreaking move, Organigram Holdings Inc. (NASDAQ: OGI), a leading Canadian licensed cannabis producer, forged a significant partnership with 4C Labs, which is a vertically integrated medical cannabis cultivator and digital healthcare provider situated in the United Kingdom. This collaboration marks a pivotal moment in the cannabis industry, as it underscores the increasing globalization of the medical cannabis market and the recognition of the potential therapeutic benefits the plant offers.

The essence of this deal revolves around Organigram’s commitment to providing dried medical cannabis flower to the UK market. According to a joint news release issued by both companies, Organigram anticipates supplying approximately 600 kilograms (1,323 pounds) of dried flower within the inaugural year of this agreement.

One of the most significant aspects of this partnership is Organigram’s commitment to granting 4C Labs exclusive rights to certain cannabis strains within the United Kingdom and the Channel Islands. This exclusivity clause will remain in effect as long as the minimum purchase commitments, although not explicitly disclosed in the news release, are met. This move not only signifies Organigram’s confidence in its cultivation capabilities but also underscores the demand for high-quality medical cannabis products within the UK.

Top Psychedelic Companies for Week

#1: Awakn

In a groundbreaking move towards revolutionizing addiction treatment, Awakn Life Sciences Corp. (OTC: AWKNF), unveiled its latest corporate presentation. The presentation shed light on the company’s relentless efforts to harness the potential of psychedelic substances for therapeutic purposes. By leveraging these compounds, Awakn aims to address the persistent challenge of addiction, offering new hope to individuals battling various forms of substance dependence.

The central theme of Awakn’s corporate presentation revolved around the potential of psychedelics to transform addiction treatment. Psychedelic substances, such as psilocybin and MDMA, have shown promising results in clinical trials for various mental health conditions, including depression, anxiety, and PTSD. Awakn’s innovative approach seeks to extend the application of these substances to tackle addiction, which has long eluded traditional treatment methods.

Furthermore, the corporate presentation provided a glimpse into the company’s ongoing research endeavors. These initiatives encompass a broad spectrum, ranging from understanding the neurobiology of addiction to refining therapeutic protocols involving psychedelics. The document highlighted the multidisciplinary collaboration that underpins Awakn’s research efforts, showcasing the integration of expertise from fields such as neuroscience, psychology, and pharmacology.

The company’s release of its corporate presentation marks a pivotal moment in the field of addiction treatment and psychedelic medicine. By sharing insights into its groundbreaking research and strategic vision, Awakn is fostering transparency, awareness, and collaboration in the pursuit of effective solutions for addiction. As the journey unfolds, the company’s progress has the potential to reshape conventional paradigms of addiction treatment and offer new hope to individuals seeking liberation from the clutches of substance dependence.

#2: COMPASS Pathways

In a significant development for the field of psychedelic medicine, biotech firm Compass Pathways plc (NASDAQ: CMPS) secured a noteworthy investment of $125 million, potentially growing to $285 million, through a strategic partnership with healthcare investors TCGX and Aisling Capital.

The essence of the private placement financing deal lies in Compass Pathways’ sale of over 16 million American Depositary Shares at an approximate price of $7.78 each, coupled with the issuance of warrants valued at $9.93 each, valid for a three-year period. Notably, the agreement included the possibility of an additional $160 million investment if all warrants are exercised, underscoring the enthusiasm and confidence of the investors in the company’s mission.

Morgan Stanley and TD Cowen are playing pivotal roles in facilitating this financial transaction, and they are set to receive a combined fee of approximately 6% of the gross proceeds from the investment.

Compass Pathways’ CEO, Kabir Nath, views this investment as not only a financial boost but also as a validation of their steadfast commitment to evidence-based research. Nath remarked, “We thank these investors for their confidence in our rigorous approach to building a strong base of evidence for the potential of COMP360 psilocybin treatment to help people.” According to the company, this investment will enable the company to further its core research efforts and enhance its commercial endeavors.

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Weekly Roundup on the Cannabis Sector & Psychedelic Sector

Key Takeaways; Cannabis Sector

  • MariMed reported financial results for the second quarter ended June 30, 2023.
  • Cannabis REIT Innovative Industrial Properties, beat expectations in Q2 with impressive results.
  • Hawthorne’s sales decline dragged Scotts Miracle-Gro’s Q3 profits down; making the company report lower than expected earnings.
  • Cresco Labs and Columbia Care terminated the hugely anticipated merger.

Key Takeaways; Psychedelic Sector

  • Awakn has announced the sale of its clinic’s businesses in Norway.

Below is a weekly roundup on 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: MariMed

Massachusetts-based multistate cannabis operator, MariMed Inc. (OTC: MRMD), recently reported its earnings for the second quarter of 2023, revealing both positive and challenging aspects of its performance.

MariMed’s second-quarter financial report showcased an upward trajectory in revenue, indicating the company’s ability to generate substantial sales within the cannabis industry. The company reported total revenues of $36.5 million for the three months ending June 30, which marked a significant increase from the $33 million recorded during the same period in the previous year. This growth highlighted MariMed’s capacity to attract consumers and capitalize on market demand, especially in the states where it operates.

Despite the impressive increase in revenue, MariMed’s financial statement revealed a surprising loss of $900,000 for the second quarter. This outcome was unexpected, particularly considering that the company was one of just a few profitable multistate operators in 2022. The shift from profitability to loss raised concerns within the industry and among investors, prompting a closer examination of the factors contributing to this setback.

For the first half of 2023, MariMed reported a total revenue of $70.9 million, marking a growth from the $64.3 million reported during the same period in 2022. While revenue saw an upward trajectory, the company reported a loss of $1.6 million for the first half of the year, which is a significant drop compared to the $6.1 million profit posted in the first half of 2022.

Despite the recent financial challenges, MariMed’s CEO, Jon Levine, remains optimistic about the company’s prospects; “Our balance sheet remains one of the strongest in the industry, and we were particularly pleased with the exponential growth of our Maryland operations that executed flawlessly to support the increased demand of adult-use sales,” Levine said in a press release.

In its updated financial guidance. anticipates breaking the $150 million revenue mark by the end of the year while maintaining a gross margin of approximately 48%, in line with the previous year’s performance. Additionally, MariMed expects to invest $30 million in capital expenditure.

#2: Innovative Industrial Properties

In a market that’s rapidly evolving, Innovative Industrial Properties, Inc. (NYSE: IIPR), a pioneering cannabis-focused real estate investment trust (REIT), once again showcased its resilience and growth potential. The company recently reported its financial results for the second quarter ending June 30, 2023, revealing a remarkable surge in revenue that underscored its steadfast commitment to innovation and adaptability within the dynamic cannabis industry.

IIP reported total revenues of approximately $76.5 million for the second quarter, showcasing an impressive 8% increase compared to the same period the previous year. Additionally, the company’s net income for the quarter stood at approximately $40.9 million, translating to a robust $1.44 per diluted share.

This financial achievement highlights the successful execution of IIP’s business model, which focuses on the acquisition and leasing of properties tailored to the needs of cannabis operators. By providing state-of-the-art facilities and resources to these operators, IIP ensures a reliable stream of rental income and sustained profitability.

While Innovative Industrial Properties experienced exceptional growth, it wasn’t without its challenges. The company disclosed that rent collections for its clients stood at an impressive 97%. However, a notable exception was a default from Parallel Cannabis, leading to approximately $2.1 million in uncollected rent. Such instances highlight the complexities and risks inherent in the cannabis industry.

IIP’s ability to navigate challenges, capitalize on growth opportunities, and adapt to evolving market dynamics is a testament to its enduring success. As the cannabis industry continues to evolve, Innovative Industrial Properties is poised to maintain its trajectory of growth and value creation.

#3: Scotts Miracle-Gro

Lawn and garden products manufacturer Scotts Miracle-Gro Co. (NYSE: SMG) reported disappointing third-quarter earnings for the period ending on July 1, 2023. The company faced challenges primarily due to a significant decline in its hydroponic business segment, known as Hawthorne.

Scotts, a major player in the indoor and hydroponic growing market, disclosed a revenue of $1.12 billion, reflecting a 5.9% decrease compared to the previous year. This decline fell short of the expectations set by Yahoo analysts by $50 million.

The drop in overall revenue was heavily attributed to a steep 40% decrease in sales from the Hawthorne division. Despite this setback, Scotts experienced a 1% increase in U.S. consumer net sales compared to the previous year. The company also reported an 8% increase in consumer point-of-sale dollars during the third quarter, with a growth rate exceeding 5% year-to-date.

As for the future outlook, the company stated that it expects its total net sales to decline by approximately 10-11% for the year. According to the company, this projection is primarily based on a 2-4% decline in the U.S. consumer segment and a more significant decrease of 30-35% in the Hawthorne segment.

In response to the disappointing earnings report, Scotts Miracle-Gro’s shares experienced a nearly 20% decline on Wednesday following the announcement. The company said it’s focused on addressing the challenges and uncertainties it faces in order to regain financial stability and sustainable growth.

#4: Cresco Labs

Cresco Labs Inc. (OTC: CRLBF) and Columbia Care Inc. (OTC: CCHWF) announced that they had mutually agreed to cancel their planned $2 billion merger. The merger, which had originally been seen as a significant move in the U.S. cannabis industry, faced challenges due to regulatory hurdles and shifting industry dynamics.

The companies had aimed to create a powerhouse cannabis brand comparable to the top dominant companies in the USA. However, the evolving regulatory hurdles and shifts in the cannabis sector led both companies to reconsider their positions.

The cancellation comes as both companies faced setbacks and declining share prices due to the deal’s uncertainty and the overall decline in cannabis stocks. Since the announcement that the merger was facing numerous challenges, Cresco Labs’ stock plummeted from $6.53 per share to $1.57, while Columbia Care’s shares dropped from $3.12 to 42 cents.

Columbia Care has been actively implementing a restructuring plan, including the closure of a facility in downtown Los Angeles and a reduction in the workforce. The company also raised funds through the sale of its Los Angeles facility and managed its debt to reduce interest expenses and extend note maturity.

Cresco Labs, on the other hand, said it’s now focusing on its “Year of the Core” strategy, which involves optimizing low-margin operations and expanding in preparation for growth in emerging cannabis markets.

Top Psychedelic Company for Week

#1: Awakn

Awakn Life Sciences Corp. (OTC: AWKNF) announced the completion of the sale of its clinics businesses in Norway, Awakn Clinics Oslo and Awakn Clinics Trondheim. According to the company, the sale is part of Awakn’s strategic decision to exit the healthcare services sector and concentrate exclusively on biotechnology research and development. The company’s focus is on developing therapeutics to treat addiction, with a current emphasis on Alcohol Use Disorder (AUD).

As part of the clinic sale, Awakn will receive compensation from the new owners for the acquisition of both clinics. Additionally, Awakn has forged an agreement with the new proprietors, entailing the licensing of select elements of the company’s healthcare services intellectual property (IP) and a license for Awakn Kare in Norway. This arrangement will also grant Awakn a share of ongoing revenue generated by the clinics.

Awakn’s CEO, Anthony Tennyson, highlighted the significance of this development, stating that the sale empowers Awakn to channel its resources and efforts entirely into its R&D projects, which are progressing rapidly. Tennyson also praised the expertise of Dr. Lowan Stewart and Dr. Ingrid Castberg, the pioneers behind the Awakn clinics, expressing confidence in their ability to ensure the clinics’ continued success.

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Weekly Roundup on the Cannabis Sector & Psychedelic Sector

Key Takeaways; Cannabis Sector

  • Canopy Growth launched Wana gummies at their medical store; The company also announced the date for the release of Q1 fiscal 2024 financial results.
  • Tilray surged over 20% on Wednesday after the company beat revenue estimates.
  • 22nd Century announced strategic changes to enhance leadership and strengthen financial position.

Key Takeaways; Psychedelic Sector

  • Awakn’s Prof. Celia Morgan made a groundbreaking presentation at this year’s PSYCH Symposium.

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

Top Marijuana Companies for Week

#1: Canopy Growth

Canopy Growth Corporation (NASDAQ: CGC), one of the leading cannabis companies in the world, took another significant step in expanding its product offerings for Canadian medical patients. The company recently announced that it has made cannabis-infused gummies from Wana Brands, the foremost edibles company in North America, available through its medical cannabis division, Spectrum Therapeutics.

The move comes after Canopy Growth assumed control of all distribution, marketing, and sales of Wana’s renowned edible cannabis products in Canada. According to the company, this strategic decision highlights the strength of Canopy Growth’s North American house of brands and demonstrates the company’s commitment to providing a diverse and high-quality range of cannabis products to its customers.

David Klein, CEO of Canopy Growth, expressed enthusiasm for the collaboration, stating, “The addition of Wana gummies to our medical store provides an immediate benefit to our Canadian business and further solidifies our North American house of brands. Over the coming months, we look forward to growing Wana’s market share across both the medical and adult-use markets in Canada.”

This collaboration between Canopy Growth and Wana Brands is likely to be well-received by the Canadian medical cannabis community, offering patients more options to incorporate cannabis into their treatment plans. Additionally, as the adult-use market in Canada evolves, the availability of these popular edibles could also contribute to Canopy Growth’s success in meeting the needs of recreational consumers.

In other news, the company announced it will release its financial results for the first quarter fiscal year 2024 ended June 30, 2023, after markets closes on August 9, 2023. Furthermore, Canopy stated that following the release of the financial results, the company will host an investors’ audio webcast that will be hosted by CEO, David Klein and CFO, Judy Hong, on August 9, at 5:30 PM Eastern Time.

#2: Tilray

Tilray Brands Inc. (NASDAQ: TLRY) surprised investors with impressive financial results for the fourth quarter ending May 31. The company’s stock surged more than 20% following the announcement, as Tilray reported significant boosts in revenue and adjusted EBITDA, coupled with a reduced net loss compared to previous quarters.

Tilray posted a remarkable net revenue of $184 million for the fourth quarter, representing a significant 20% year-over-year growth. The figure surpassed the average estimate of $153.6 million projected by Yahoo analysts, amounting to a $30-million revenue beat.

Despite facing a net loss of $120 million in the fourth quarter, Tilray demonstrated significant improvement compared to the same period in the previous year when the net loss amounted to a staggering $458 million.

Additionally, in the fourth quarter, adjusted EBITDA surged by 93% to $22 million, compared to $12 million in the same quarter of the previous year. For the entire fiscal year 2023, adjusted EBITDA grew 28% to reach $61 million, compared to $48 million in the prior fiscal year. These impressive figures demonstrate Tilray’s resilience in an industry that has been facing significant challenges.

Tilray’s CEO and Chairman, Irwin Simon, expressed satisfaction with the company’s performance, stating, “We delivered on our commitment to generate positive adjusted free cash flow across all business segments, and executed against our strategic plan to grow revenue, drive operating efficiencies, and improve margins and profitability, all while investing in our industry-leading brands.”

Looking ahead, Tilray is optimistic about its future prospects. The company anticipates adjusted EBITDA of $68 million to $78 million for fiscal year 2024, representing an 11% to 27% growth compared to the full-year 2023 results. Additionally, Tilray expects to continue generating positive adjusted free cash flow, further solidifying its financial position.

#3: 22nd Century

22nd Century Group, Inc. (NASDAQ: XXII), a company focused on innovative plant technologies in the tobacco and cannabis industries, recently announced significant changes in its leadership and financial structure.

The company reported that John Miller, the leader of the tobacco business unit, had been appointed as the interim Chief Executive Officer (CEO), replacing James A. Mish, who had served as CEO since June 2020. Furthermore, 22nd Century stated that, despite stepping down from the CEO position, James A. Mish will continue to contribute to the company’s growth as a member of the Board of Directors.

This leadership change comes at a critical time for 22nd Century Group as it embarks on new initiatives to strengthen its financial position and drive innovation in the tobacco harm reduction and health and wellness markets. As part of its effort to secure additional funds, the company successfully obtained $11.7 million in gross proceeds from registered direct financing. This capital infusion will undoubtedly support the company’s various research and development efforts in creating novel products with potential harm-reduction properties.

Moreover, the company announced the commencement of an estimated $15 million annualized cost reduction initiative. Cost optimization is a crucial strategy for businesses seeking to improve profitability and efficiency, and 22nd Century Group’s decision to undertake this initiative demonstrates its commitment to financial discipline and long-term sustainability.

Alongside the leadership changes and financial developments, 22nd Century Group expanded its Board of Directors by appointing Andrew Arno, a seasoned Wall Street veteran, as an independent director. According to the company, this addition brings valuable expertise to the board and will likely strengthen the company’s decision-making capabilities and governance practices.

In addition to these strategic moves, 22nd Century regained compliance with the NASDAQ marketplace regarding its stock selling price. In an effort to boost the stock price, the company engaged in a 1-for-15 reverse stock split at the beginning of July. This move demonstrated the company’s commitment to maintaining its listing on the Nasdaq Stock Market and provided investors with greater confidence in the company’s financial standing.

Top Psychedelic Company for Week

#1: Awakn

Awakn Life Sciences Corp. (OTC: AWKNF), a leading company in the field of psychedelic medicine, has been at the forefront of research on Ketamine-Assisted Therapy (KAT). Under the guidance of Professor Celia Morgan, a distinguished expert in addiction research, Awakn has been exploring the application of KAT for Alcohol Use Disorder (AUD) and behavioral addictions.

During this year’s PSYCH Symposium, Professor Celia Morgan delivered an enlightening presentation on Awakn’s groundbreaking research on KAT. The focus of the discussion was on the treatment of Alcohol Use Disorder, a pervasive problem affecting millions of people worldwide, as well as behavioral addictions, which are increasingly recognized as significant mental health challenges.

Professor Celia Morgan’s presentation at the PsychSymposium on Awakn’s Ketamine-Assisted Therapy represents a significant milestone in addiction treatment research. The preliminary findings offer hope for individuals grappling with Alcohol Use Disorder and behavioral addictions. As the field of psychedelic medicine continues to evolve, collaboration between academia, industry, and regulatory authorities will be crucial in unlocking the full potential of Ketamine-Assisted Therapy and other psychedelic interventions. Ultimately, the goal is to provide effective and evidence-based treatments that can alleviate the burden of addiction and improve the lives of countless individuals.

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Weekly Roundup on the Cannabis Sector & Psychedelic Sector

Key Takeaways; Cannabis Sector

  • Verano announced new appointments to its board of directors.
  • Tobacco giant Philip Morris is acquiring Israeli cannabis company in a $650 million deal.

Key Takeaways; Psychedelic Sector

  • Awakn announced the launch of a special Portugal license partner in Lisbon.
  • Psychedelic drug developer Filament Health poised for NASDAQ listing through $210 million SPAC agreement.
  • Numinus Wellness reported 713.3% revenue growth in the Q3 2023 financial results.

Below is a weekly roundup on 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: Verano Holdings

Verano Holdings Corp. (OTC: VRNOF), a leading multi-state cannabis company, recently made a significant announcement regarding changes to its Board of Directors. On July 20, 2023, the company appointed John Tipton, President of the Southern Region, and Charles Mueller to join its esteemed Board.

This strategic move came alongside the retirement of Mike Smullen, a long-standing contributor to the company. According to Verano, the new appointments are expected to strengthen the Board’s skillset and expertise, further supporting the company’s mission of providing high-quality cannabis products and exceptional hospitality to its growing patient and consumer base.

John Tipton’s association with Verano began in February 2021 when he served as the Chief Executive Officer of Plants of Ruskin, LLC. This company later became a subsidiary of Verano upon its acquisition, marking the company’s entry into the flourishing Florida cannabis market. During his tenure, Tipton demonstrated exceptional skills in accounting, finance, agriculture, and construction, which were instrumental in shaping the company’s growth and success. In June 2023, he was promoted to President of the Southern Region, further solidifying his crucial role within Verano.

On the hand, Charles Mueller brings an impressive tax and accounting background to the Verano Board of Directors. His career spans over 35 years, with a substantial portion spent at PepsiCo, Inc., where he held various senior tax roles, including Vice President, State and Local Tax of the PepsiCo Corporate Division.

Verano Holdings Corp.’s Founder and Chief Executive Officer, George Archos, expressed his satisfaction with the new appointments, acknowledging the significant contributions of both John Tipton and Charles Mueller to the company.

#2: Philip Morris

Tobacco industry behemoth Philip Morris International Inc. (NYSE: PM), renowned for its Marlboro cigarettes, is set to venture into the cannabis market with an ambitious investment. The company is poised to spend up to $650 million to acquire an Israeli cannabis firm specializing in metered-dose inhalers for pain management.

The target of Philip Morris’ interest is Syqe Medical, an innovative Israeli cannabis company. According to reports, the acquisition will proceed in stages. The first stage will involve Philip Morris making a $120 million investment in Syqe Medical. Interestingly, this is not the company’s first involvement with Syqe; it had previously backed the Israeli firm with a $20 million investment in 2016.

The deal’s success hinges on Syqe Medical’s ability to navigate through clinical trials in the United States and receive approval from the U.S. Food and Drug Administration (FDA). If these milestones are achieved, Philip Morris has committed to purchasing all of Syqe Medical’s shares for a staggering $650 million. The acquisition will be conducted through Philip Morris’ subsidiary, Vectura. Should the deal be finalized, it is anticipated to catapult Syqe Medical into one of the world’s largest marijuana companies, cementing its position in the global cannabis industry.

The move by Philip Morris to invest in the cannabis sector does not come as a surprise, as the company has been hinting at its interest in marijuana-related business opportunities for several years. This strategic move is in line with an increasing trend among large tobacco companies exploring opportunities within the cannabis space.

In 2018, Altria Group, Inc. (NYSE: MO), another major player in the tobacco industry, made significant strides into the cannabis market with a whopping $1.8 billion investment in the Canadian company Cronos Group Inc. (NASDAQ: CRON). Similarly, in 2019 British tobacco company Imperial Brands PLC (OTC: IMBBY) also joined the race by investing $93.4 million in the Canadian cannabis firm, Auxly Cannabis Group Inc. (OTC: CBWTF).

Philip Morris’ substantial investment in Syqe Medical has the potential to bring about significant changes in the cannabis industry. If the acquisition is successful, Syqe will gain access to extensive financial resources and global distribution networks, enabling it to expand its product reach to new markets. Moreover, this move could signal increased interest from other major tobacco companies to explore opportunities in the cannabis sector, leading to further investments and partnerships in the marijuana space.

Top Psychedelic Companies for Week

#1: Awakn

Awakn Life Sciences Corp. (OTC: AWKNF), announced that their exclusive Portugal license partner, The Clinic of Change, had recently opened its doors in the vibrant city of Lisbon, bringing the revolutionary Ketamine-Assisted Psychotherapy (KAP) treatment to individuals seeking relief from various mental health disorders.

Ketamine, a well-known anesthetic, has recently garnered attention for its antidepressant properties. Traditionally used in surgical settings, ketamine’s unique effect on the brain has demonstrated the potential to combat depression, anxiety, PTSD, and other mood disorders. Through a carefully administered dose of ketamine in conjunction with psychotherapy sessions, Awakn’s Ketamine-Assisted Psychotherapy aims to provide rapid relief and promote profound emotional healing.

Awakn’s introduction of Ketamine-Assisted Psychotherapy to Lisbon through its exclusive Portugal license partner, The Clinic of Change, represents a significant advancement in mental health care. This revolutionary treatment option holds the promise of rapid relief, enhanced therapeutic insights, and newfound hope for individuals grappling with mental health challenges.

#2: Filament Health

In a groundbreaking move for the psychedelic drug industry, clinical-stage drug development firm Filament Health Corp. (OTC: FLHLF) and special purpose acquisition company Jupiter Acquisition Corporation (NASDAQ: JAQC) recently announced a definitive agreement to merge. The merger will result in the creation of a new public company that is expected to be listed on the Nasdaq exchange.

The deal, which was announced on Wednesday, July 19, 2023, values Filament at $176 million or $0.85 per share, and it brings the pro forma enterprise valuation of the combined entity to approximately $210 million. The deal is anticipated to close in the fourth quarter of this year and is expected to provide the combined company with at least $5 million of net proceeds.

This strategic merger is set to propel Filament’s botanical psychedelic drug development platform to new heights. Benjamin Lightburn, CEO of Filament, expressed his enthusiasm about the partnership, emphasizing that it will give the company access to the broader capital markets necessary to advance their drug development initiatives. Lightburn stated, “Filament was founded on the belief that standardized, naturally-derived psychedelic medicines can improve the lives of millions of people suffering from treatable conditions. Partnering with Jupiter brings us a step closer to making this a reality.”

Jupiter CEO James Hauslein also echoed the excitement, praising Filament’s “novel” approach to psychedelic drug development, which involves utilizing natural botanical extracts. The collaboration between the two companies aims to leverage their respective expertise and resources to accelerate the development of effective psychedelic treatments for various medical conditions.

The proposed merger has received approval from both companies’ boards, with Filament’s board receiving a fair opinion from independent financial advisor Evans & Evans, Inc. However, the transaction is still subject to regulatory approval, court orders from the Supreme Court of British Columbia, and the consent of Filament’s security holders and Jupiter’s stockholders. To increase the likelihood of approval, directors and management of Filament, who collectively own approximately 42.8% of outstanding common shares, have committed to voting in favor of the merger.

#3: Numinus Wellness

Numinus Wellness Inc. (OTC: NUMIF), a mental health care company specializing in evidence-based psychedelic-assisted therapies, recently announced impressive financial results for the third quarter ending on May 31, 2023. The company’s revenue surged by a remarkable 713.3% year-over-year, reaching $6 million, and showed a substantial growth of 12.6% from the previous quarter.

According to the company, a significant factor contributing to this success was the gross profit, which saw an extraordinary increase of 1051.6% from the same quarter last year, amounting to $2.1 million. However, it’s essential to note that during the quarter, Numinus incurred $600,000 in one-time expenses due to staff reductions and operational realignment. As a result, the company reported a net loss of $7.2 million for the quarter.

Despite the net loss, Numinus remains financially well-positioned, boasting $13 million in cash reserves as of May 31, 2023. This stability is a positive sign for the company as it positions itself to capitalize on the opportunities emerging in the psychedelics sector.

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Weekly Roundup on the Cannabis Sector & Psychedelic Sector

Key Takeaways; Cannabis Sector

  • Cannabis stocks rallied thanks to TerrAscend uplisting to the Toronto Stock Exchange.
  • Canopy Growth’s is in danger of going out of business: The company announced debt reduction initiatives to salvage the situation.
  • Organigram reported third quarter fiscal year 2023 financial results.

Key Takeaways; Psychedelic Sector

  • Awakn completed sale of Awakn clinic in London.
  • Cybin announced the development of a scalable psychedelic facilitation training program, EMBARK.

Below is a weekly roundup on 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: TerrAscend

Cannabis investors finally found some relief in the beginning of this month as cannabis stocks experience a much-needed boost, thanks to TerrAscend Corp. (OTC: TRSSF) uplisting to the Toronto Stock Exchange (TSX).

After enduring a bear market for nearly two years, cannabis investors were eagerly waiting for a catalyst to turn the tides, and it seems TerrAscend’s uplisting just did that. The move itself didn’t directly lead to the surge in cannabis’s stock values, but it was the response from financial giant Morgan Stanley that ignited the buying frenzy.

After uplisting to TSX, TerrAscend received recognition from Morgan Stanley, which removed the company from its restricted list. This means that investors can now trade TerrAscend’s stock like any other on the TSX, signaling a major step forward for the company.

This news had an immediate positive impact on the cannabis sector, with US Cannabis ETF experiencing a 3.7% increase following the announcement. TerrAscend’s stock witnessed a significant jump of 2.5% to reach $1.71. Although it has a way to go to reach its 52-week high of $3.09.

TerrAscend’s uplisting opens the possibility of being listed on a major American exchange as an American Depository Receipt (ADR). ADRs facilitate foreign companies with the opportunity to trade in major exchanges in the United States, which opens new avenues for growth and investment opportunities.

TerrAscend’s successful uplisting has not gone unnoticed by other cannabis companies. Many are closely monitoring these developments and may attempt to replicate TerrAscend’s strategy. While not all companies can restructure in the same way to uplist, it’s clear that TerrAscend’s move has set a positive precedent for the industry.

#2: Canopy Growth

Canopy Growth Corp. (NASDAQ: CGC), one of the largest cannabis companies in the world, is facing a significant setback as its stock plunged over 40% on Friday after receiving a warning from NASDAQ regarding its stock falling below $1 for a period of over 30 consecutive days.

To address its financial situation, Canopy Growth announced a series of agreements aimed at deleveraging its balance sheet. The company entered into privately negotiated redemption agreements with holders of its unsecured senior notes due July 15, 2023, as well as agreements with certain lenders under its term loan credit agreement. According to the company, these measures are expected to reduce Canopy’s total debt by approximately $437 million over the next six months and lower annual interest costs by $20 to $30 million.

Canopy Growth’s Chief Financial Officer, Judy Hong, expressed satisfaction with the agreements, stating that they would enable the company to preserve cash and strengthen its balance sheet. Hong also highlighted the company’s ongoing cost reduction program and its commitment to long-term value creation. “We are pleased to have worked constructively with our lenders to reach these agreements which enable Canopy Growth to preserve cash, and further improve its balance sheet through accretive and meaningful reductions in its overall debt,” said Judy Hong.

In addition to the debt reduction initiatives, Canopy Growth said it will retain around $92 million in cash by settling approximately $193 million in aggregate principal amount of its existing notes. The company stated that it will also make a cash payment of $93 million to reduce $100 million of principal indebtedness under its credit facility. Furthermore, Canopy Growth said it expects further principal reductions through asset sales.

However, despite the efforts to improve its financial position, Canopy Growth has faced skepticism from analysts and investors. Fitch Ratings downgraded the company’s long-term issuer default rating (IDR) from CCC- to RD due to recent debt swaps and operational concerns.

#3: Organigram

Organigram Holdings Inc. (NASDAQ: OGI) reported a drop in net revenue and rising operating costs in its financial results for the third quarter ending May 31, 2023. The company saw a 14% decrease in net revenue to $32.8 million compared to the same period last year, mainly due to a decline in recreational flower sales. This decline led to increased costs of sales and a decrease in gross margin.

Despite the challenging financial results, Organigram’s CEO, Beena Goldenberg, remains optimistic about the company’s future. Goldenberg expressed confidence in Organigram’s strategy and stated that the company is focused on sustainable long-term growth. “Our outlook moving into next year remains positive with the foundation now in place to deliver continued growth,” Goldenberg said in a press statement.

Organigram’s CFO, Derrick West, attributed the decline in sales and margins to some producers inflating THC values on their labels. He stated that Organigram has taken steps to increase whole flower THC levels to meet consumer demand. “We believe that based on this progress we will return to positive adjusted EBITDA in Q4 Fiscal 2023,” he said.

Looking ahead, Organigram said it expects higher net revenue in the fourth quarter, mainly due to the growth of its expanded product line across multiple categories. The company also stated that it anticipates improved adjusted gross margins and a return to positive adjusted EBITDA. In addition, Organigram said that it believes its capital position is healthy and that it has sufficient liquidity available for the near to medium term.

Top Psychedelic Companies for Week

#1: Awakn

Awakn Life Sciences Corp. (OTC: AWKNF), announced the completion of the sale of its subsidiary, Awakn London Limited, which operates the Awakn Clinics London in the United Kingdom. The subsidiary was acquired by Awakn Via Amitis Ltd., which is a joint venture between Via (formerly WDP), a leading UK healthcare charity, and Amitis Group, a private UK investment company.

As part of the agreement, Awakn granted Awakn Via Amitis Ltd. an exclusive license to certain elements of its healthcare services intellectual property within the UK. Additionally, Awakn Via Amitis Ltd. obtained a non-exclusive license for Awakn Kare, a proprietary treatment for alcohol relapse prevention, within the UK. In return, Awakn will receive a share of the revenue generated by Awakn London Limited.

The sale of Awakn Clinics London represents an important milestone for Awakn Life Sciences. The transaction allows the company to focus its resources on its research and development (R&D) programs while ensuring continuity of care for clients and employees in London.

Awakn CEO Anthony Tennyson expressed satisfaction with the completion of the sale, emphasizing that it enables the consortium of Awakn Via Amitis Ltd. to leverage its experience and partnership with the NHS to expand and scale the clinics business. He also expressed confidence in the consortium’s ability to expand and scale the clinic’s business, benefiting a broader range of patients in need of effective treatment options.

#2: Cybin

Toronto-based Cybin Inc. (NYSE: CYBN) announced the development of a scalable psychedelic facilitation training program called EMBARKCT . This new program is an evolution of the existing EMBARK Training Program.

The EMBARK program, launched in 2021, provides foundational training for psychedelic facilitators to deliver skillful and ethical care in working with psychedelic therapeutics. EMBARKCT aims to increase Cybin’s capacity to screen, qualify, train, and certify facilitators for future pivotal studies of its lead candidates, CYB003 and CYB004, potential treatments for major depressive disorder and generalized anxiety disorder, respectively.

Additionally, Cybin said it’s hoping to leverage the newly established codes by the American Medical Association (AMA) to attach its Embark Training Program to insurance reimbursement. The AMA recently introduced new Current Procedural Terminology (CPT) Category III codes that specifically address the need for continuous in-person monitoring and intervention during psychedelic medication therapy.

The implementation of these codes, which will become effective on January 1, 2024, is a crucial step toward standardizing psychedelic treatments and integrating them into mainstream medical practices. By establishing a standardized way to identify procedures and collecting data to support broader use and potential FDA approval, the AMA codes create a clearer path for insurance reimbursement for these emerging therapies.

With the development of EMBARKCT and the support of the AMA’s CPT codes, Cybin is taking significant steps toward revolutionizing mental healthcare and expanding the accessibility and acceptance of psychedelic-based therapies.

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Weekly Roundup on the Cannabis Sector & Psychedelic Sector

Key Takeaways; Cannabis Sector

  • TerrAscend obtained a $25 million loan; Bought 2 dispensaries in
  • Canopy Growth is selling property and assets in bid to raise cash amid financial struggles.
  • Cresco Labs and Columbia Care provided update on proposed merger: They’re struggling to secure approvals for deal.

Key Takeaways; Psychedelic Sector

  • Awakn’s head of Ketamine assisted psychotherapy for addiction will make a presentation at the upcoming PsychSymposium 2023.
  • Cybin trimmed losses in the financial results and secured $30 million investment for psychedelic drug trials.

Below is a weekly roundup on 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: TerrAscend

TerrAscend Corp. (OTC: TRSSF), a cannabis company based in Canada, recently obtained a $25 million commercial loan and acquired its third Maryland dispensary for $6.75 million. The loan, which is backed by Stearns Bank, carries an interest rate of 10.5% and will mature in December 2024.

Although TerrAscend didn’t say in the press release what the money would be used for, the company put $3 million cash in the acquisition of Hempaid LLC, which does business as Blue Ridge Wellness in the town of Parkville, Maryland. The acquisition was completed for $6.75 million, and the remaining $3.75 million will be paid in the form of a seller’s note.

The acquisition of Blue Ridge Wellness brought TerrAscend’s U.S. footprint to 36 dispensaries across several states. The company stated that it expects the acquisition to strengthen its balance sheet and drive revenue growth in Maryland, especially with the upcoming launch of recreational marijuana sales in the state.

In addition to the loan and acquisition, TerrAscend closed a second round of private placements worth $20.5 million. According to the company, the financing, along with the recent acquisitions, is aimed at qualifying the company for a proposed listing on the Toronto Stock Exchange, funding further acquisitions in Maryland, and boosting working capital. The private placements involved the sale of units and convertible debentures, with company insiders, including Executive Chairman Jason Wild, participating in the offering.

Furthermore, TerrAscend entered into a definitive agreement to acquire Herbiculture Inc., a medical dispensary in Burtonsville, Maryland, for $8.25 million. This acquisition brought TerrAscend’s total number of dispensaries in Maryland to four, the maximum allowed by state regulations. And with the upcoming launch of adult-use sales in Maryland, the company is confident that Herbiculture is well-positioned to achieve substantial sales and profit growth.

TerrAscend’s recent financing activities, acquisitions, and debt reduction efforts demonstrate the company’s strategic initiatives to expand its presence, drive revenue growth, and strengthen its financial position in the rapidly growing cannabis market.

#2: Canopy Growth

Canadian cannabis giant Canopy Growth Corp. (NASDAQ: CGC) recently announced the sale of one of its California facilities as part of its efforts to raise cash and address its significant debt burden and mounting losses.

Canopy Growth’s stock price has experienced a drastic decline of 81% this year, resulting in the company’s removal from the S&P/TSX index and a market capitalization that now stands at less than $280 million, significantly down from its previous multibillion-dollar valuation. As a result, analyst have expressed concerns about the company’s ability to recover from its losses and questioned the effectiveness of its aggressive U.S. expansion strategy in the absence of federal cannabis reform.

In the attempt to alleviate its financial woes, Canopy Growth has sold multiple properties, including a facility in Modesto, California, bringing its total income from asset sales to C$81 million since April 1. The company expects to generate an additional C$150 million in revenue through similar asset sales by September 30, aiming to improve its balance sheet and move toward profitability.

“Today’s announcement reflects our continued focus on strengthening Canopy Growth’s balance sheet and demonstrates the rapid execution of our transformation to an asset-light, North American-focused cannabis business on an accelerated path to profitability,” David Klein, CEO of Canopy Growth, said in a press release.

Canopy Growth’s financial struggles coincide with a broader restructuring effort. The company aims to achieve a net cost reduction of C$125 million by the end of the fiscal year and has implemented various measures, such as exiting cannabis flower cultivation at some facilities and consolidating cultivation in Ontario and British Columbia. Despite the challenges faced, Canopy Growth remains optimistic about its long-term prospects and aims to strengthen its balance sheet and liquidity through facility divestitures.

#3: Cresco Labs

The proposed multibillion-dollar megamerger between Chicago-based Cresco Labs Inc. (OTC: CRLBF) and Columbia Care Inc. (OTC: CCHWF) has hit a roadblock. On Friday, the companies announced that they have been unable to finalize the necessary divestitures to obtain regulatory approvals for their proposed megamerger. The companies had set a deadline of June 30 to meet the requirements specified in their arrangement agreement, but regulatory hurdles have caused delays.

In a joint statement, both companies stated that they are currently working together to determine the next course of action and they have promised to provide further updates in the near future.

Cresco Labs and Columbia Care’s struggle to secure regulatory approvals for their proposed merger represents a notable bump in the road for both companies. While the setback was anticipated to some extent, it poses challenges for their ambitions to become the largest legal cannabis operator in the United States. And as they work together to determine the next course of action, investors and industry watchers eagerly await further updates. In the meantime, Cresco Labs and Columbia Care will need to consider alternative growth strategies and address their financial concerns as they navigate the ever-evolving cannabis landscape.

Top Psychedelic Companies for Week

#1: Awakn

Awakn Life Sciences Corp. (OTC: AWKNF), Head of Ketamine Assisted Psychotherapy for Addiction, Professor Celia Morgan, is set to be a distinguished speaker at this year’s highly anticipated PsychSymposium 2023, taking place on July 6th.

As a renowned expert in her field, Professor Morgan will share her invaluable insights and knowledge on the role of ketamine assisted psychotherapy in addiction treatment. This event promises to be a significant milestone in the advancement of addiction therapy and mental health care.

The PsychSymposium 2023 is a prestigious conference that brings together leading professionals, researchers, and practitioners in the field of psychology and psychiatry. It serves as a platform for sharing the latest scientific discoveries, evidence-based practices, and innovative approaches to addressing mental health challenges. With Professor Morgan’s expertise, her presentation is expected to be a highlight of the event.

#2: Cybin

Toronto-based Cybin Inc. (NYSE: CYBN) made significant strides in fiscal year 2023 financial results, ending March 31, with a notable reduction in losses.

The psychedelics company reported trimming its losses to C$47.5 million, a significant improvement from the C$67.6 million loss incurred in the previous financial year. This news comes as a beacon of hope for shareholders and investors as Cybin continues its journey in the promising field of psychedelic therapeutics.

In addition to cutting losses, Cybin announced a major milestone: the successful negotiation of a $30 million common share purchase agreement with Lincoln Park Capital Fund. According to the company, when combined with the C$16.6 million remaining in the company’s coffers at the end of March, this capital injection will provide a much-needed financial boost for the ongoing and future drug trials that involve psilocybin and dimethyltryptamine (DMT).

Cybin CEO, Doug Drysdale, said in a press release that he’s “encouraged” by the new guidelines released by the U.S. Food and Drug Administration on psychedelic drug approval processes, and said that the company has made “significant progress” over the past year on its two clinical treatment programs that are still in development.

 

“These guidelines also help remove regulatory uncertainty for investors and clinical trial sponsors. With these catalysts in our sights, we believe that we are moving ever closer to our goal of developing treatment options,” Drysdale said.

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Weekly Roundup on the Cannabis Sector & Psychedelic Sector

Key Takeaways; Cannabis Sector

  • High Tide revenue rose, but the company still fell short of profitability.
  • Aurora Cannabis experienced an increase in revenue; However, the company is facing significant cash expenditure.
  • Acreage reduced its board size ahead of canopy deal.

Key Takeaways; Psychedelic Sector

  • Awakn announced closing of the second tranche and upsizing of previously announced private placement.
  • Numinus announced a partnership with MAPS to support therapist psychedelic experiential training.

In this weekly roundup, we review the key developments amongst major players in the cannabis and psychedelics sectors.

Top Marijuana Companies for Week

#1: High Tide

Canada-based cannabis company High Tide Inc. (NASDAQ: HITI) reported a significant increase in revenue for its second fiscal quarter, ending April 30. The company’s revenue reached an impressive $118.1 million, marking a 46% year-over-year growth from $81 million in the same quarter last year. Despite this positive development, High Tide still fell short of profitability, recording a net loss of $1.6 million.

According to the company, the revenue growth can be attributed to a combination of cost reductions and sales increases. High Tide has been working on improving its operational efficiency, resulting in a reduction in losses compared to the previous year. The company’s losses decreased from $8.2 million in the second quarter of the previous year to $1.6 million in the current quarter.

However, High Tide also faced negative cash flow of minus $1.9 million during the quarter. This indicates that the company is still grappling with financial challenges despite its revenue growth. To address this, High Tide stated that it aims to become cash-flow positive by the end of the calendar year. According to the company, they plan to expand their retail footprint and open more storefronts across Canada, with a target of capturing 15% of the market.

High Tide’s CEO, Raj Grover, expressed optimism about the company’s prospects; “Our bricks-and-mortar margins have increased by approximately 1% every quarter for the last five quarters, and we feel there is further opportunity to increase margins in most markets where we operate,” Raj Grover said in a press release. “We believe there remains a significant opportunity to continue moving towards our goal of capturing 15% of this market.”

While High Tide plans to open more stores in the second half of 2023, the company acknowledges that the overall growth will be relatively muted compared to its historical pace. It expects the challenging market conditions and expiring leases to contribute to the shakeout in the Canadian marijuana industry.

#2: Aurora Cannabis

Aurora Cannabis Inc. (NASDAQ: ACB), a leading cannabis company, recently reported its financial results for the third quarter and fiscal year 2023. While the company saw a rise in revenues, its cash burn remains a concern. Aurora’s total net revenue for the quarter reached $64 million, surpassing the previous quarter’s revenue of $61.7 million and the previous year’s revenue of $50.4 million. The increase was attributed to the contribution of $10.8 million from Bevo, which was acquired in August 2022.

Despite the revenue growth, Aurora continues to experience significant net losses. The company reported a quarterly loss of $87 million, compared to $67.2 million in the second quarter. Aurora attributed the jump in losses to an increase of $60 million in other expenses driven by changes in fair value on derivative investments.

Aurora reassured shareholders about its balance sheet, stating that it has $230 million in cash and cash equivalents and approximately $80 million outstanding in convertible debentures. However, the company’s cash position has decreased significantly, with the cash at the end of June 2022 amounting to $437 million. Over the past nine months, Aurora has burned through more than $200 million, causing its working capital to plunge by 59% since the third quarter of 2022.

Despite the cash burn, Aurora believes its current cash on hand is sufficient to fund operations until it becomes cash flow positive. We are proud to have delivered our second sequential quarter of positive Adjusted EBITDA in Q3 2023, demonstrating our commitment to financial discipline,” CEO Miguel Martin said. “Over the last three years, our ongoing business transformation initiatives have delivered ~$400 million in annualized cost savings that have significantly reduced cash used in operating activities.”

Martin continued, “In fact, cash use continues to improve as evidenced by the reduction from $35.5 million in Q2 2023 to $15.1 million in Q3 2023, excluding working capital. This impressive improvement is the launching point for the initiatives that will support our drive to our new financial target of positive free cash flow by end of calendar year 2024.”

#3: Acreage Holdings

Acreage Holdings, Inc. (OTC: ACRHF), a leading cannabis operator in the United States, announced further changes to its leadership and oversight as it prepares for an anticipated acquisition by Canopy Growth Corporation (NASDAQ: CGC). The company said that it had implemented a streamlined governance structure in order to align with its near-term priorities and ensure a smooth transition.

These changes reflect Acreage’s commitment to positioning itself for success as it integrates with Canopy USA, a subsidiary of Canopy Growth Corporation. The company aims to leverage the combined expertise and resources of both organizations to capitalize on the significant opportunities presented by the U.S. cannabis market, particularly in anticipation of potential federal permissibility.

Dennis Curran, the newly appointed Chief Executive Officer of Acreage, expressed his satisfaction with the company’s progress and its upcoming transition into Canopy USA. He acknowledged the support and strategic guidance provided by the Board, highlighting their instrumental role in Acreage’s journey. Curran also expressed gratitude for their contributions and wished them well in their future endeavors.

Top Psychedelic Companies for Week

#1: Awakn

Awakn Life Sciences Corp. (OTC: AWKNF), a clinical-stage biotechnology company focused on developing therapeutics to treat addiction, announced the closing of the second tranche and an upsizing of its previously announced non-brokered private placement financing.

The initial private placement financing was announced on April 26, 2023, with the aim of raising gross proceeds of up to $3,000,000 through the issuance of up to 6,521,739 units in the capital of the company at a price of CAD$0.46 per unit. The first tranche of the offering closed on a positive note, raising $1,100,715 by issuing 2,392,858 units.

Recently, Awakn successfully closed the second tranche of the offering, issuing 1,884,204 units and generating gross proceeds of $866,733 for this tranche. In total, the company has raised $1,967,448 from the private placement to date. Encouraged by recent developments, Awakn decided to increase the size of the offering from up to $3,000,000 to up to $4,000,000, maintaining the price of $0.46 per unit.

Each unit offered consists of one common share in the company and three quarters (0.75) of one whole common share purchase warrant. The warrants entitle the holders to acquire one common share at a price of $0.63 per share within a period of five years from the date of issuance. The company said that the gross proceeds generated from the offering will be used to fund the company’s general working capital.

#2: Numinus Wellness

Numinus Wellness Inc. (OTC: NUMIF), a mental health care company focused on advancing innovative treatments and evidence-based investigational psychedelic-assisted therapies, recently announced a significant partnership with the Multidisciplinary Association for Psychedelic Studies (MAPS). The collaboration aims to support psychedelic experiential opportunities for practitioners as part of a clinical study. The partnership marks an important step forward in the field of psychedelic-assisted therapy and demonstrates the commitment of both organizations to driving greater understanding and accessibility to these therapies.

As part of the collaboration, Numinus has submitted a Clinical Trial Application (CTA) to Health Canada. If approved, the CTA will enable Numinus to offer MDMA-assisted therapy experiential opportunities exclusively through its programs. The experiential opportunity will be made available to practitioners as part of Numinus’ psychedelic-assisted therapy education and training program. It is noteworthy that this is the first permission granted by MAPS to use its protocol as part of such an experiential opportunity.

The Clinical Trial Application has been submitted by Numinus through its subsidiary, Numinus Wellness Research Inc. Should the application be approved by Health Canada, the clinical trial will provide practitioners interested in MDMA-assisted therapy with the opportunity to experience and observe MDMA sessions. This firsthand experience will further their understanding of psychedelic-assisted therapy, contributing to their professional development.

 

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Weekly Roundup on the Cannabis Sector & Psychedelic Sector

Key Takeaways; Cannabis Sector

  • Tilray plummeted 21% on Friday, after announcing a registered offering of $150 million worth of convertible notes.
  • SNDL reported growth in sales over last year as acquisitions helped build the company.
  • Ayr Wellness revenues rose 3% sequentially in the first quarter.
  • Curaleaf first quarter of 2023 revenue exceeded expectations.

Key Takeaways; Psychedelic Sector

  • Awakn is working on a groundbreaking ketamine study that will help reduce gambling addictions.
  • Seelos Therapeutics provided critical clinical update and financial reports in the first quarter 2023 financial release.

Unlike the prior three quarters, where we started strongly and ended weakly, the cannabis sector isn’t doing well in Q2. April was a down month, and May has been too. One significant contributing factor to this turmoil has been the continued interest rate hikes by the Federal Reserves, which have not only affected the cannabis sector but also impacted the broader markets. However, amidst the adversity, there remains a glimmer of hope and a sense of optimism fueled by the ongoing wave of decriminalization and legalization efforts taking place across various states and countries.

In this weekly roundup, we delve into the first-quarter earnings reports of prominent cannabis companies and provide a comprehensive overview of the key and noteworthy developments amongst major players in the cannabis and psychedelics sectors.

Top Marijuana Companies for Week

#1: Tilray

On Friday, Tilray Brands, Inc. (NASDAQ: TLRY) experienced a significant drop in its stock price, declining by over 21%. This decline followed the announcement of another round of capital raising by the company. While the broader market enjoyed gains on Friday, Tilray’s stock faced downward pressure due to concerns about its ongoing need for funding and potential dilution of existing shares.

In the new round of capital raising, Tilray launched a registered offering of $150 million worth of convertible senior notes. The notes have a maturity date of June 15, 2027, and carry an annual interest rate of 5.2%. Interest on the notes will be paid semi-annually.

Under the terms of the agreement, the notes are convertible into Tilray common shares at any time, with an initial conversion rate of approximately 376.6 shares per $1,000 principal amount, which translates to a conversion price of approximately $2.66 per share. Tilray also retains the option to redeem the notes for cash after June 20, 2025.

Additionally, the underwriters of Tilray’s note issuance were granted a 30-day option to purchase up to $22.5 million worth of the notes.

According to the company, they intend to utilize the proceeds from this offering primarily to redeem previously issued convertible senior notes, with a portion allocated for general corporate purposes, although specific details were not provided by Tilray.

This move follows Tilray’s ongoing struggle with weak cash flow and consistent losses. As a result, there’s a growing concern regarding the sustainability of Tilray’s financial position and its ability to achieve profitability. Irrespective of this, investors will continue to monitor Tilray’s performance, seeking signs of improved financial stability and a sustainable path towards profitability.

#2: SNDL

SNDL Inc. (NASDAQ: SNDL), a prominent player in the cannabis industry, recently reported a substantial increase in sales for the first quarter of the year. Although there was a sequential decrease in net revenue compared to the previous quarter, the company experienced significant growth when compared to the same period last year. SNDL attributed this success to strategic acquisitions, including those of Alcanna, Valens, and Zenabis.  According to the company, these acquisitions have not only bolstered SNDL’s revenue but have also positioned the company as one of the largest adult-use cannabis manufacturers and retailers in Canada.

The financial results for the first quarter ending March 31 indicated that SNDL’s net revenue fell to C$202.5 million, compared to C$240.4 million in the previous quarter. However, this was a remarkable increase from the C$17.6 million reported in the first quarter of the previous year. SNDL explained that the decrease in revenue compared to the fourth quarter of 2022 was primarily due to seasonal trends in the liquor retail segment.

Furthermore, SNDL managed to reduce its net losses to C$36.1 million for the first quarter, a significant improvement from the C$161.6 million net loss in the fourth quarter of 2022 and the C$38 million net loss in the first quarter of 2022. SNDL attributed this positive trend to various factors, including the integration of Valens, which is progressing well, and the identification of new revenue streams and cost reduction opportunities.

In terms of cannabis expansion, SNDL reported gross revenue of C$67.4 million from the cannabis retail segment in the first quarter of 2023. This represents a modest decline compared to the fourth quarter of 2022 but a substantial increase from the first quarter of 2022.

#3: Ayr Wellness

Ayr Wellness Inc. (OTC: AYRWF), a leading cannabis company, recently announced its financial results for the first quarter ending March 31, revealing a significant loss stemming from its exit from the Arizona business. While the company experienced overall revenue growth and exceeded expectations in certain areas, the substantial loss incurred highlights the complexities and challenges of operating in the cannabis industry.

Despite growing revenue by 18% to $117 million compared to the previous year’s $99.5 million, Ayr Wellness faced a staggering net loss of $197 million for the quarter. The loss was primarily attributed to discontinued operations related to the sale of the Arizona business, amounting to $185 million, net of taxes. Operating losses remained flat at $21 million, indicating ongoing challenges within the company’s operations.

The decision to exit the Arizona business was a strategic move by Ayr Wellness, demonstrating the company’s commitment to optimizing its operations. However, the financial implications of this decision were significant, resulting in a substantial loss for the quarter. It is worth noting that the company’s revenue still managed to surpass expectations, growing by 3% sequentially from the previous quarter’s $114 million.

Despite the substantial loss incurred, Ayr Wellness remains optimistic about its overall performance. David Goubert, the president and CEO of Ayr, highlighted the company’s achievements, including the growth in revenue by 18% year-over-year and a significant expansion of adjusted EBITDA margin. He also emphasized the generation of positive operating cash flow for the third consecutive quarter.

#4: Curaleaf

Curaleaf Holdings, Inc. (OTC: CURLF), a prominent international provider of consumer products in the cannabis industry, recently reported impressive year-over-year growth in net revenue for the first quarter of 2023.

Curaleaf’s net revenue for the first quarter of 2023 reached $336.5 million, reflecting a $40.5 million increase compared to the same period in 2022. The company stated that the primary drivers behind this growth were the continued expansion of retail stores and a dedicated emphasis on research and development. Notably, the company surpassed revenue expectations by nearly $5 million, showcasing its ability to deliver strong financial results.

Despite reporting a net loss attributable to the company of $54.4 million, or a net loss per share of $0.07, the company’s adjusted EBITDA stood at $73.2 million, equivalent to 22% of revenue, indicating a positive trend toward profitability.

Curaleaf also revised its full-year outlook, projecting a robust growth trajectory for 2024, 2025, and 2026. The company said that this expectation is based on the acceleration of cannabis adoption throughout Europe. Furthermore, the company also stated that it’s maintaining a strong cash position, with $116 million on its balance sheet at the end of the quarter. Additionally, it reported that it had generated $31 million in operating cash flow from continuing operations.

Top Psychedelic Companies for Week

#1: Awakn

Awakn Life Sciences Corp. (OTC: AWKNF), in collaboration with the University of Exeter, is embarking on a groundbreaking research project to investigate the potential of ketamine in reducing the gambling problem.

The study is being led by Professor Celia Morgan, who is a Professor of Psychopharmacology at the University of Exeter, and the Head of Ketamine Assisted Psychotherapy for Addiction at Awakn.

The study draws inspiration from Project Kestrel, Awakn’s previous successful research, which explored ketamine’s impact on alcohol misuse. By re-writing maladaptive reward memories linked to substance abuse, ketamine has shown promise in breaking the cycle of addiction. In the context of gambling addiction, the researchers hypothesize that ketamine may weaken the memory trace associated with impulsive gambling behavior, providing individuals with a greater chance of breaking free from the cycle of addiction.

Awakn’s collaboration with the University of Exeter to investigate the potential of ketamine in reducing the rising gambling problem represents a groundbreaking research endeavor. And as the study progresses, its outcomes could potentially revolutionize the treatment landscape for individuals struggling with gambling addictions, leading to a brighter future for those in need of support and intervention.

#2: Seelos Therapeutics

Seelos Therapeutics, Inc. (NASDAQ: SEEL), a clinical-stage biopharmaceutical company focused on developing therapies for central nervous system disorders and rare diseases, recently provided a clinical update and reported its financial results for the first quarter of 2023. The company is working on various therapeutic programs targeting different diseases, including MDD, ALS, Parkinson’s disease, and neurodegenerative disorders like Huntington’s disease.

The CEO of Seelos, Raj Mehra, highlighted the significance of 2023 for the company, stating that it is the most important year in Seelos’ history thus far. He mentioned that the registration-directed study of their intranasal ketamine program, SLS-002, will be completed by the end of June 2023, with top-line data expected to be released in the third quarter of 2023. The company believes that if successful, this therapy could provide help to a significant number of people globally who experience suicidal ideation.

Seelos also provided updates on other programs. The enrollment for the SLS-005 study in ALS has been completed, and the company expects to release top-line Phase II/III data in late 2023. Additionally, Seelos announced the initiation of their first internally created gene therapy program, SLS-009, which focuses on the one-time treatment of neurodegenerative disorders such as Huntington’s disease.

Regarding the financial results for the first quarter of 2023, Seelos reported a net revenue of $808,000, primarily from grant revenue earned through their Expanded Access Program. Research and development expenses decreased compared to the same period in the previous year, mainly due to the completion of enrollment in the SLS-005 study. General and administrative expenses slightly increased. Other expenses resulted in a loss due to the issuance of common stock and warrants in a registered direct offering.

Additionally, Seelos ended the first quarter with $14.1 million in cash and cash equivalents, which represented a decrease compared to the previous quarter.

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