Key Takeaways; Cannabis Sector

• Cansortium and RIV Capital announced a merger to form a new four-state cannabis MSO.
• Canopy Growth reported mixed financial results amid revenue decline and strategic restructuring.
• Trulieve settled litigation with Harvest of Ohio, as the company aims to expand its footprint in Ohio.
• Goodness Growth is seeking $860 million from Verano over the failed acquisition deal.

Key Takeaways; Psychedelic Sector

• FSD Pharma emerged victorious in legal battle against former CEO.
• Awakn recently concluded a feasibility study with Catalent Pharma.

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

Top Marijuana Companies for Week

#1: Cansortium

Cansortium Inc. (OTC: CNTMF), a vertically integrated cannabis operator based in Florida, is set to merge with RIV Capital Inc. (CSE: RIV) (OTC: CNPOF), which operates the Etain Health marijuana brand in New York. This strategic merger aims to create a robust multistate operator (MSO) with a significant presence in four key markets: Florida, New York, Pennsylvania, and Texas.

Under the terms of the merger agreement, Cansortium will acquire all issued and outstanding Class A common shares of RIV Capital in exchange for Cansortium shares. Shareholders of Toronto-based RIV will receive 1.245 Cansortium shares for each RIV share. Once the merger is complete, Cansortium shareholders will own approximately 51.25% of the combined entity, while RIV shareholders and The Hawthorne Collective, a subsidiary of The Scotts Miracle-Gro Company (NYSE: SMG), will hold the remaining 48.75%.

The combined company will operate under the Cansortium name and maintain its headquarters in Tampa, Florida. It will feature eight cultivation and processing facilities and 42 dispensaries across the four states. The merger is projected to yield annual cost savings of $5 million to $10 million through efficiencies in cultivation, processing, and administration.

The new entity will also have a pro forma cash balance of approximately $74 million, which will support accretive growth initiatives. Additionally, the merger will alleviate $175 million of debt for The Hawthorne Collective by exchanging its existing convertible notes in RIV for a new class of nonvoting exchangeable shares of Cansortium.

Cansortium CEO Robert Beasley will continue as CEO of the merged company. Beasley emphasized the focus on growth and profitability, leveraging core principles in cultivation, operating efficiencies, and inventory optimization to deliver strong cash flows for shareholders.

“The merger brings together two companies with core strengths in key growth states, positioning us to drive near-term synergies and capitalize on long-term value creation opportunities,” Beasley said. The combined company’s 2023 pro forma revenue is estimated at $105 million, with a net debt of just $5 million.

The merger, which is expected to close by the fourth quarter of this year, still requires shareholder and court approvals. If the deal falls through under certain specified circumstances, Cansortium will receive a $3 million termination fee, while RIV Capital will get a $5 million fee if the merger does not proceed.

#2: Canopy Growth

Canopy Growth Corporation (NASDAQ: CGC) reported its financial results for the fourth quarter and fiscal year ending March 31, 2024, revealing a mixed performance. The company’s fourth-quarter revenue increased by 7% year-over-year to $72.8 million, surpassing Yahoo Finance analyst estimate of $52.99 million. However, the net loss for the quarter grew by 84% to $94.7 million. For the full fiscal year, total revenue declined to $343 million from $381 million in 2023 and $537 million in 2022. Additionally, net revenue for 2024 was $297.1 million, down from $333.3 million in 2023.

The decline in annual revenue was largely attributed to the divestiture of Canopy’s retail business in Canada, alongside reduced business-to-business sales in Canada. Despite these setbacks, the company saw growth in the Canadian medical market and international cannabis sales, particularly through Storz & Bickel, whose net revenue increased by 43% due to strong sales of the new Venty portable vaporizer.

Moreover, Canopy Growth managed to significantly reduce its net loss for the fiscal year to $657 million, a substantial improvement from the $3.2 billion loss in the previous year. The loss per share also improved to ($8.79) from ($70.69) last year. The company’s cash reserves fell from $667 million in 2023 to $170 million by the end of 2024. However, it addressed financial pressures through measures such as a $35 million private placement, proceeds from asset sales, and debt restructuring.

Canopy’s CEO, David Klein, emphasized the company’s strategic focus on cannabis and its readiness to capitalize on regulatory developments in Germany; Furthermore, Canopy U.S. CFO, Judy Hong, highlighted significant progress in reducing expenses, cash burn, and debt, positioning Canopy Growth for future opportunities.

#3: Trulieve

Trulieve Cannabis Corp. (CSE: TRUL) (OTC: TCNNF) recently resolved its litigation with Harvest of Ohio, LLC, marking a significant expansion in Ohio’s evolving cannabis market. This settlement paves the way for Trulieve to acquire key assets while facilitating the continued growth of Harvest of Ohio’s operations under new ownership.

This settlement resolved a year-long legal dispute centered on an alleged $24 million debt. As part of the agreement: Trulieve will acquire licenses for medical cannabis dispensaries in Columbus and Beavercreek; Ariane Kirkpatrick, the current majority owner of Harvest of Ohio, will assume full ownership of the Athens dispensary, which will be rebranded as Mavuno, making her the first Black woman to fully own a vertically integrated cannabis company in Ohio; Additionally, the production facility in Ironton will be sold to unrelated third parties.

The dispute originated from a partnership between Harvest of Ohio, a Black woman-owned and family-operated business led by Ariane Kirkpatrick, and Harvest Health and Recreation, an Arizona-based multi-state operator, which was later acquired by Trulieve in a $2.1 billion mega-deal. The conflict escalated when Trulieve sued Harvest of Ohio over a $24 million debt. Harvest of Ohio accused Trulieve of attempting to undermine its operations and exploit Ohio’s social equity provisions to dominate the market. Trulieve, in turn, claimed that Harvest of Ohio misused the funds for personal gains while seeking additional capital.

Trulieve’s entry into the Ohio market is timely, as the state prepares for the launch of adult-use cannabis sales. Having legalized recreational cannabis in November 2023, Ohio is poised for significant market growth. The state’s medical marijuana dispensaries, which reported $484 million in sales last year, are expected to be the first venues to offer adult-use sales. Business applications for new licenses are set to be available from June 7, signaling the beginning of a new era for Ohio’s cannabis industry.

#4: Goodness Growth

Goodness Growth Holdings, Inc. (OTC: GDNSF) is seeking $860.9 million in damages from Verano Holdings Corp. (OTC: VRNOF), claiming breach of contract after Verano terminated its acquisition agreement back in 2022. Goodness Growth, which is headquartered in Minneapolis, filed an expedited summary trial request on May 2 with the Supreme Court of British Columbia. Both companies are incorporated in British Columbia and listed on Canadian stock exchanges.

The 2022 acquisition deal, initially valued at $413 million, was terminated by Verano, which led to significant financial strain for Goodness Growth. The termination, according to Goodness Growth, denied them essential capital, exacerbating their debt challenges and operational vulnerabilities. Verano, however, filled a counterclaim stating that Goodness Growth breached the agreement by withholding crucial information and misleading shareholders.

Goodness Growth’s CEO, Josh Rosen, attributed Verano’s actions to “buyer’s remorse” as cannabis stock prices fell. Goodness claim outlined the severe impact of the failed deal, including debt maturities, workforce reductions, asset sales, and high-interest debt capital raises. Despite these challenges, Rosen remains determined to fight, stating the company has navigated through the worst part of the crisis.

Verano, which faces over $1 billion in liabilities, in its quarterly report acknowledged the potential adverse effects of the litigation on its operations. And many financial analysts estimate that even a settlement significantly lower than $860 million would impact Verano severely. 

Top Psychedelic Companies for Week

#1: FSD Pharma

FSD Pharma Inc. (NASDAQ: HUGE) emerged victorious in its prolonged legal battle against its former CEO, Dr. Raza Bokhari. Following years of litigation and an extensive eight-day evidentiary hearing, FSD Pharma announced a favorable ruling from the Arbitrator, who issued three awards in favor of the company. These awards included damages and reimbursements for FSD’s incurred fees and costs.

On May 29, 2024, the United States District Court for the Eastern District of Pennsylvania confirmed FSD Pharma’s petition to uphold the arbitration awards against Dr. Raza Bokhari, issued by a Canadian arbitrator in 2022. The company now intends to seek a final judgment against Bokhari.

The roots of the conflict trace back to a proxy battle instigated by Bokhari, stemming from disagreements over company acquisitions between him and FSD’s founders. Despite Bokhari’s claims of wrongful termination and demands for a $30 million payout, the legal outcome has shifted dramatically in FSD’s favor. Contrary to Bokhari’s demand for a multimillion-dollar payout for alleged wrongful dismissal, FSD Pharma will instead receive payments from him, including various sums with accrued interest.

#2: Awakn

Awakn Life Sciences Corp. (CSE: AWKN) (OTC: AWKNF) in collaboration with Catalent Pharma, recently successfully completed a feasibility study confirming the stability of MDMA when applied to Catalent’s advanced Zydis® (ODT) technology. This development is significant as it affirms the compatibility of MDMA with pre-gastric absorption, addressing key pharmacokinetic challenges associated with the drug. 

MDMA, which is an Investigational Medicinal Product (IMP), that is known for its role as a serotonin, norepinephrine (NE), and dopamine releaser and reuptake inhibitor, has shown promising efficacy in clinical trials for treating Alcohol Use Disorder (AUD) and Post Traumatic Stress Disorder (PTSD), both conditions are often linked to trauma. The drug also holds potential for treating other trauma-related addictions and mental health conditions.

Awakn entered into an exclusive development agreement with Catalent to create and test a proprietary MDMA formulation utilizing Catalent’s Zydis® ODT technology. This collaboration aims to deliver a market-ready product with optimized delivery mechanisms.

Catalent’s Zydis® ODT technology features a unique, patent-protected freeze-dried oral solid dosage form that disperses almost instantly in the mouth, typically within three seconds, without the need for water.

The successful completion of the feasibility study marked a crucial step forward in the development of MDMA as a viable therapeutic option. Awakn Life Sciences, through its collaboration with Catalent, is poised to advance MDMA treatment by leveraging the innovative Zydis® ODT technology, potentially transforming the landscape of trauma-related mental health and addiction treatments.

Key Takeaways; Cannabis Sector

• Agrify converted $13.8m debt to equity to regain Nasdaq compliance.
• Glass House Brands is seeking Canadian funding through shelf prospectus.
• TILT Holdings’ cannabis sales are stable despite vape supply disruptions, debt and stock dilution concern; analyst says.

Key Takeaways; Psychedelic Sector

• Awakn recently concluded a feasibility study with Catalent Pharma.
• Lucy Scientific is on a surge despite mounting challenges and NASDAQ compliance pressure.

This week marked a significant milestone in the cannabis sector as the Drug Enforcement Administration (DEA) published its proposed rescheduling of cannabis and initiated a comment period ending on July 22nd. The most notable outcome of rescheduling cannabis from Schedule I to Schedule III would be the elimination of the burdensome 280E taxation. The end of 280E taxation is expected to boost cash flow and net income for companies that grow, process, or sell cannabis in the United States. This is why many stakeholders in the cannabis industry are closely monitoring this development.

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

Top Marijuana Companies for Week

#1: Agrify

Agrify Corporation (NASDAQ: AGFY), a cannabis technology company, converted approximately $13.8 million in debt to equity to comply with Nasdaq’s stock listing requirements. According to the company, this strategic move aims to enhance the company’s financial stability and ensure its continued listing on the Nasdaq exchange.

The conversion, which was announced on Wednesday, followed Agrify’s and Nature’s Miracle Holding Inc. (NASDAQ: NMHI) mutual decision to terminate a merger plan that would have allocated Agrify shareholders roughly 30% ownership in the combined entity. Both companies said that the cancellation was due to “unfavorable market conditions.”

Entities affiliated with Agrify’s CEO, Raymond Chang, played a significant role in this conversion. CP Acquisitions LLC, which is controlled by Chang and board member I-Tseng Jenny Chan, converted $11.5 million of senior convertible notes into pre-funded warrants, exercisable for up to 8.6 million Agrify shares. Additionally, GIC Acquisitions LLC, also associated with Chang, converted $2.29 million of junior secured notes into pre-funded warrants for up to 3.2 million shares.

This substantial debt-to-equity conversion boosted Agrify’s shareholders’ equity above Nasdaq’s minimum requirement of $2.5 million, which is crucial for maintaining its listing. CEO Raymond Chang highlighted the importance of this move, stating it demonstrated the management and shareholders’ dedication to Agrify’s future, and their desire to provide a cleaner balance sheet to fuel the company’s growth.

Agrify, which has been restructuring since 2022 following significant losses, ended 2023 with an accumulated deficit of approximately $265.8 million. Additionally, despite a 55% decline in first-quarter revenue to $2.6 million, cost reductions in administration and marketing resulted in a net loss of just $38,000.

Furthermore, the conversion included provisions for adjustments if Agrify undertakes equity financing within the next 12 months, pending shareholder approval. This strategic financial restructuring is expected to stabilize Agrify’s financial position and support its growth trajectory.

#2: Glass House Brands

Glass House Brands Inc. (OTC: GLASF), a cannabis company based in Long Beach, California, is exploring opportunities to raise significant capital by selling shares in Canada. The company announced on Wednesday that it has filed a shelf prospectus with Canadian regulators, aiming to issue up to C$782 million (US$576 million) in new equity shares by April 2026.

This strategic move provides Glass House with the flexibility to quickly raise funds through equity offerings if favorable opportunities arise. Despite no immediate plans to sell shares, the prospectus positions the company to act swiftly in the future. 

Chairman and CEO Kyle Kazan highlighted the company’s strong performance and growth potential, stating that the shelf prospectus will allow them to add growth capital and reduce capital costs; “With our strong operating performance, long-term growth prospects, and increase in share price over the past 18 months, having a base shelf will provide additional flexibility to add growth capital and lower our cost of capital when we judge the time to be right,” Kyle Kazan said in a statement.

Many US marijuana operators are in the pursuit of Canadian funding, due to the limited access to traditional financing sources like bank loans, because of the federal illegality of marijuana in the United States. Canadian investors, however, offer a viable alternative as the cannabis sector continues to navigate federal uncertainties in the USA.

Glass House ended 2023 with a revenue of $271 million, marking a 56% increase from the previous year. Despite being unprofitable and having an accumulated deficit of $209 million as of March 31, the 2023 financial results did not indicate any significant litigation or financial instability. Additionally, the company recently dropped defamation claims against Catalyst defendants and won a $2.865 million judgment in a fraud case involving its subsidiary GH Group.

#3: TILT Holdings

TILT Holdings Inc. (OTC: TLLTF) recently reported stable first-quarter 2024 financial results, despite facing supply chain disruptions in its vape hardware segment, which contributed 71% of its 2023 sales. Analyst Pablo Zuanic highlighted that supply chain issues have temporarily hindered sales, but the company’s custom business and hemp-derived vape segments showed promise, mainly supported by TILT’s position as the largest CCELL distributor in the U.S.

Additionally, the company’s cannabis operations in Massachusetts, Ohio, and Pennsylvania remain stable despite market deflation and rising competition. Massachusetts, which is responsible for two-thirds of TILT’s sales, benefits from strong brand performance. Furthermore, TILT is eyeing expansion in Pennsylvania and Ohio through strategic partnerships.

As of March 2024, TILT’s net debt increased to $56 million from $49 million at the end of 2023. Moreover, concerns arise from the company’s break-even EBITDA, negative cash flow, and the potential for stock dilution due to debt. Nevertheless, Zuanic finds TILT’s valuation attractive, trading at 0.7 times EV/sales compared to the 1.8 times average for multi-state operators.

Despite the stock’s 25% decline over the past 90 days and low trading liquidity, Zuanic maintains an “Overweight” rating, citing TILT’s solid market positioning and growth potential in both vape hardware and cannabis segments.

Top Psychedelic Companies for Week

#1: Awakn

Awakn Life Sciences Corp. (CSE: AWKN) (OTC: AWKNF) in collaboration with Catalent Pharma, recently successfully completed a feasibility study confirming the stability of MDMA when applied to Catalent’s advanced Zydis® (ODT) technology. This development is significant as it affirms the compatibility of MDMA with pre-gastric absorption, addressing key pharmacokinetic challenges associated with the drug. 

MDMA, which is an Investigational Medicinal Product (IMP), that is known for its role as a serotonin, norepinephrine (NE), and dopamine releaser and reuptake inhibitor, has shown promising efficacy in clinical trials for treating Alcohol Use Disorder (AUD) and Post Traumatic Stress Disorder (PTSD), both conditions are often linked to trauma. The drug also holds potential for treating other trauma-related addictions and mental health conditions.

Awakn entered into an exclusive development agreement with Catalent to create and test a proprietary MDMA formulation utilizing Catalent’s Zydis® ODT technology. This collaboration aims to deliver a market-ready product with optimized delivery mechanisms.

Catalent’s Zydis® ODT technology features a unique, patent-protected freeze-dried oral solid dosage form that disperses almost instantly in the mouth, typically within three seconds, without the need for water.

The successful completion of the feasibility study marked a crucial step forward in the development of MDMA as a viable therapeutic option. Awakn Life Sciences, through its collaboration with Catalent, is poised to advance MDMA treatment by leveraging the innovative Zydis® ODT technology, potentially transforming the landscape of trauma-related mental health and addiction treatments.

#2: Lucy Scientific

Lucy Scientific Discovery Inc. (NASDAQ: LSDI), a company in the psychedelic sector, is facing a growing array of issues with limited solutions in sight. Recently, Lucy failed to file its first-quarter earnings for the period ending in March by the May 15 deadline, and it’s uncertain when these reports will be submitted. This delay was compounded by significant resignations, including that of CFO Brian Zasitko on May 3, effective May 17, and board member Livio Susin.

Adding to its woes, Lucy is under pressure from NASDAQ to maintain its listing. In February 2024, NASDAQ notified Lucy that it no longer met the $2.5 million stockholders’ equity requirement, with equity standing at just $81,158 as of December 31, 2023. The company also failed to meet alternative market value or net income criteria. After an unsuccessful appeal in March, NASDAQ planned to suspend trading on May 16, but Lucy’s request for a hearing allowed continued trading during the appeal process. 

Despite these setbacks, Lucy’s stock has seen a temporary surge recently, on May 16 LSDI traded 69 million shares versus an average of 1.2 million, hitting a high of $2.12 before falling back to $1.17. This spike led to its inclusion in the meme stock frenzy and received favorable ratings from trading programs like Stock Invest.

Nonetheless, Lucy’s path to financial stability remains unclear. A planned merger with Bluesky Biologicals collapsed in March, which was expected to be a significant revenue source. Furthermore, the company abandoned its Controlled Drugs and Substances Dealer’s Licence in Canada and discontinued the development of TerraCube. As a result, Lucy recorded a loss of $1.7 million from discontinued operations for the nine months ending March 31, 2024.

Moreover, the company’s potential deal with High Times Holding also remains uncertain, as the bidding period for High Times’ assets ended on May 17. Lucy’s financial outlook is bleak, with an accumulated deficit of $43 million and no clear revenue streams apart from issuing more shares and incurring additional debt.

Key Takeaways; Cannabis Sector

• Ayr Wellness reported solid first quarter results.
• Cresco Labs reported stagnant sales but an optimistic outlook for 2024.
• Tilray announced a $250 million equity offering to fund U.S. asset acquisitions amid legalization optimism.
• Flora Growth is strategizing on cannabis reform to its reverse financial trend.

Key Takeaways; Psychedelic Sector

• Enveric Biosciences is eyeing $410 million licensing deals as the company advances its depression treatment program. 
• Awakn is facing hurdles amid financial filing delay.

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

Top Marijuana Companies for Week

#1: Ayr Wellness

Ayr Wellness Inc. (OTC: AYRWF) delivered promising financial results for the first quarter ending March 31, 2024. The company reported a slight revenue increase of 0.3% to $118 million compared to $117 million last year, and a 2.8% sequential growth. The net loss for the quarter was reduced to $106 million from last year’s $194 million, which according to the company, was influenced by the discontinuation of its Arizona business. This year’s net loss included a $79,172 loss related to debt restructuring.

Ayr’s cash levels rose to $71 million, up from $50 million at the end of 2023, and it reported a working capital of $98 million, a significant improvement from a negative $7.2 million. Retail revenues saw a decline of $3.5 million due to an 8% decrease in same-store sales transactions, offset by $4.5 million from new store openings and acquisitions. Wholesale revenues increased by $3.8 million, driven by New Jersey store openings and higher Ohio sales.

Operating expenses were cut to $52 million from last year’s $69 million, primarily due to lower stock compensation and payroll expenses.

Looking ahead, Ayr expects second-quarter revenue to be flat or slightly up, with stronger growth anticipated in the second half of 2024. The company maintains an adjusted EBITDA margin target of approximately 25% and aims for positive cash flow for the year.

#2: Cresco Labs

Cresco Labs Inc. (OTC: CRLBF), a prominent cannabis company and owner of Sunnyside, announced its financial results for the first quarter of 2024, which ended on March 31. The company reported stable revenue at $184 million, narrowly surpassing analyst estimates by $1.2 million.

Despite flat sales, Cresco achieved notable financial improvements. Adjusted gross profit increased by 7% to $95 million, achieving a 51% gross margin—an enhancement of 580 basis points. Additionally, the company successfully cut its adjusted selling, general, and administrative (SG&A) expenses by 24% to $52 million, making up 28% of total revenue.

Cresco reported $16 million in income before taxes but faced a net loss of $2 million for the quarter. Nevertheless, adjusted EBITDA rose significantly by 82% to $53 million, reflecting a 1,380-basis point increase in the adjusted EBITDA margin, which now stands at 29%.

A highlight of the report was Cresco’s remarkable cash flow generation, with operating cash flow soaring by 1,000% year-over-year to $36 million and free cash flow reaching $33 million. 

Cresco’s CEO, Charles Bachtell, attributed this success to the company’s focus on efficient execution and the strengthening of its teams, he also hinted at future growth opportunities for the company; “The continued development of our teams’ capabilities and our relentless focus on efficient execution is leading to very strong performance across our retail and branded product business resulting in a 10x increase in operating cash flow year-over-year,” Charles Bachtell said in a statement.

Cresco continues to maintain strong market positions in Illinois, Pennsylvania, and Massachusetts. Its diverse brand portfolio includes Cresco, High Supply, FloraCal, Good News, Wonder Wellness Co., Mindy’s, and Remedi.

Looking ahead, Cresco is optimistic about leveraging upcoming adult-use cannabis markets to drive further growth and cash flow generation in 2024. 

#3: Tilray

Tilray Brands, Inc. (NASDAQ: TLRY) announced plans to raise up to $250 million through an at-the-market equity offering to fund potential acquisitions in the U.S., anticipating changes in cannabis legalization. According to the company, this strategic move is not intended for general working capital but specifically to capitalize on the evolving regulatory landscape in the U.S. cannabis market.

On May 13, Tilray revealed plans to issue 13.1 million shares of common stock in exchange for $19.8 million in principle of the 2024 Convertible Notes, reducing the outstanding principal amount to $330,000 as of May 14, 2024.

The Biden administration has shown a clear intent to advance the legalization process. On May 16, President Biden announced the push to submit the proposed rescheduling to the Federal Register, initiating a 60-day comment period. As a result, many Canadian cannabis companies like Tilray and Canopy Growth Corporation (NASDAQ: CGC) are increasingly targeting the larger U.S. market for growth once the regulatory landscape changes, due to the relatively smaller scale of the Canadian market. 

Financially, Tilray reported a 30% increase in net revenue for the recent quarter, reaching $188.3 million, up from $145.6 million the previous year. Despite this growth, the company adjusted its fiscal year 2024 EBITDA guidance to $60-63 million, down from an earlier projection of $68-78 million, and acknowledged challenges in achieving positive adjusted free cash flow due to delays in asset sale collections.

Tilray has over 800 million shares outstanding, with a recent trading price of $1.98 per share and a 52-week high of $3.40. Many analysts have maintained a four-star rating for Tilray, though some have recently lowered the price target, reflecting cautious optimism amidst ongoing market and regulatory developments in the cannabis sector.

#4: Flora Growth

Flora Growth Corp. (NASDAQ: FLGC), a Florida-based cannabis company, recently reported a net loss of $3.4 million for the first quarter ending March 31, 2024. This marked a return to losses after a brief period of profitability last year, with revenues slightly declining to just over $18 million from $19.3 million the previous year. Operating expenses also decreased to $6.3 million from $7.7 million.

Despite these challenges, Flora Growth remains hopeful due to anticipated cannabis reforms in key markets such as the United States and Germany. CEO Clifford Starke expressed confidence in the progressive cannabis agendas in these regions; “Legislators in the primary markets in which we operate, namely the U.S. and Germany, have demonstrated a willingness to advance a progressive cannabis agenda,” Clifford Starke said in a statement.

In Germany, where Flora Growth recently entered through the acquisition of TruHC, the company plans to capitalize on the consumer-focused market by selling home cannabis grow kits, seeds, and cuttings.

Through expanding its European presence, Flora Growth has secured distribution partnerships in the United Kingdom, Poland, and Israel. Additionally, the company closed a $3.23 million underwriting deal and entered into a sales agreement for $3.8 million with Aegis Capital Corp.

With $24.2 million in total assets, including $4.1 million in cash, against $21.1 million in total liabilities, Flora Growth feel it is strategically positioned to navigate the evolving cannabis landscape and potentially reverse its recent financial downturn.

Top Psychedelic Companies for Week

#1: Enveric Biosciences

Enveric Biosciences, Inc. (NASDAQ: ENVB) announced efforts to secure licensing contracts for its drug pipeline, following a recent partnership with MindBio Therapeutics (CNSX: MBIO). 

The company’s CEO, Joseph Tucker, highlighted significant interest from strategic pharmaceutical partners for Enveric’s new drug candidates targeting mental health disorders. The company’s lead asset, EB-003, is a non-hallucinogenic compound aimed at treating depression and anxiety, progressing towards an investigational new drug application and a planned Phase 1 clinical trial.

Enveric has executed seven non-binding term sheets with four potential partners, which could result in up to $410 million in milestone payments and future royalties. These partnerships are centered on compounds developed via Enveric’s AI platforms, Psybrary and PsyAI, generating over 1,000 molecules across various therapeutic areas, including neuropsychiatric conditions, cancer, and joint disease.

Additionally, the clinical-stage biotech company, which focuses on developing treatments for depression and anxiety, reported a net loss of $2.46 million for first quarter 2024 but maintained $6.36 million in cash, bolstered by $4.5 million raised through warrant and equity issuances.

The first quarter was described as “highly productive,” by the company’s CEO, who reflected the company’s strategic advancements and ongoing efforts to expand its therapeutic portfolio and partnerships.

#2: Awakn

Awakn Life Sciences Corp. (CSE: AWKN) (OTC: AWKNF) a clinical-stage biotechnology company focusing on medication-assisted treatments for addiction, particularly Alcohol Use Disorder (AUD), recently disclosed its plan to file its audited annual financial statements and MD&A for the financial year ended January 31, 2024, by May 30, 2024. This announcement came in line with the standard timeline applicable to venture issuers.

The company underwent a significant change in February 2024, when it delisted its common shares from Cboe Canada and listed them on the Canadian Securities Exchange (CSE). This transition made the company a venture issuer under Canadian securities law. However, due to the listing occurring twelve days after the financial year’s end, the filing deadline for financial statements technically remained that of non-venture issuers, which is 90 days from the financial year end.

As a result, Awakn Life Sciences Corp. was notified by the Ontario Securities Commission of its late filing and the potential issuance of a cease-trade order if the financial statements were not filed by 3:00 p.m. (EST) on May 7, 2024.

The company is undergoing an audit conducted by its auditor MNP LLP, expecting completion and filing of the financial statements by May 30, 2024. In anticipation of potential regulatory actions, Awakn has applied for a management cease trade order under National Policy 12-203 – Cease Trade Orders for Continuous Disclosure Defaults (“NP 12-203”). This measure, if approved, would allow individuals who are not directors, officers, or insiders of the company to continue trading in their securities.

Should the application for a management cease trade order be rejected, the company expects a full cease trade order to be issued shortly after May 7, 2024. In the meantime, Awakn announced its commitment to providing bi-weekly default status reports through news releases, complying with alternative information guidelines under NP 12-2023 until the filing requirements are met. The company assured stakeholders that there is no undisclosed material information concerning its affairs.

Key Takeaways; Cannabis Sector

• Village Farms regained Nasdaq compliance; Weedmaps is facing a compliance issue.
• MariMed expanded Maryland presence with a $5.3 million acquisition.
• Tilray adjusted expectations for 2024 amid financial challenges, as they eye Canadian tax relief.

Key Takeaways; Psychedelic Sector

• Optimi Health partnered with a New Zealand institute to supply psilocybin for indigenous healing research. 
• Awakn expanded into U.S. Southern States with groundbreaking addiction treatment partnership.

This week, a glimmer of hope emerged in the cannabis sector as the head of the Food and Drug Administration (FDA) addressed a House committee, stating that there’s “no reason” for the U.S. Drug Enforcement Administration (DEA) to delay its awaited decision on reclassifying marijuana from Schedule 1 to Schedule 3 of the Controlled Substances Act. It has been over seven and a half months since the Department of Health and Human Services forwarded their rescheduling recommendation to the DEA. However, a delay in action has left many stakeholders in the cannabis sector on edge, eagerly awaiting clarity on the regulatory front. The prospect of rescheduling holds significant implications, promising to alleviate tax burdens and pave the way for eventual federal legalization, which is long overdue in the eyes of many.

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

Top Marijuana Companies for Week

#1: Village Farms

Vancouver-based Village Farms International, Inc. (NASDAQ: VFF) successfully regained compliance with Nasdaq listing rules, marking a positive turn for the marijuana producer and supplier company. The Nasdaq requires listed companies to maintain a minimum bid price of $1 per share, a threshold that Village Farms surpassed in March. The company had previously received a warning from Nasdaq in April 2023 due to low share prices but was granted an extension until October to rectify the situation.

 Meanwhile, WM Technology, Inc. (NASDAQ: MAPS), the parent company of Weedmaps, is the latest to face the non-compliance challenge. On Tuesday, WM Technology disclosed that it had received a notice of non-compliance from Nasdaq. This announcement came following the company’s failure to submit its annual 10-K report on time.

WM Technology attributed the delay in filing to recent changes in its executive finance leadership and the necessity to conclude additional financial-closing procedures associated with internal control weaknesses. Nevertheless, the company reassured stakeholders that it would submit the Form 10-K promptly. With the non-compliance notice, WM Technology now has 60 days to present a compliance plan to Nasdaq. The stock exchange may grant an extension until the end of September for the company to rectify its status.

These developments highlight the regulatory challenges faced by companies operating in the cannabis-related industry; particularly the Nasdaq’s minimum bid-price requirement, which has prompted various adjustments among listed marijuana and ancillary companies, including share consolidations. Aurora Cannabis Inc. (NASDAQ: ACB), a Canadian producer, notably consolidated its shares on a 10-to-one basis in February in response to Nasdaq regulations. Conversely, SpringBig Holdings, Inc. (OTC: SBIG), a cannabis marketing and loyalty company, opted to delist from Nasdaq in September 2023 after failing to meet the compliance the requirements.

#2: MariMed

MariMed Inc. (OTC: MRMD), a Massachusetts-based marijuana multistate operator (MSO), solidified its foothold in the Maryland cannabis market with a second significant acquisition.

The acquisition involved the closure of a $5.3 million deal for Community Wellness and Compassionate Care Center, which was finalized on April 5. This transaction added to MariMed’s existing presence in Maryland, giving them a second retail store in the state.

Following the closure of the deal, MariMed is poised to reopen the Upper Marlboro outlet, which closed in July 2023, pending regulatory approvals. The company also paid the state’s adult-use conversion fee, indicating its intention to sell recreational cannabis at the newly acquired store. With existing operations in Annapolis and a cultivation and processing facility in Hagerstown, MariMed is strategically positioned to capitalize on Maryland’s growing cannabis market.

Despite these expansions, MariMed has faced challenges, including supply chain disruptions and regulatory setbacks, impacting its financial performance. The company reported a net loss of $16 million in 2023, attributing some of these losses to delays in expansion projects across multiple states. CEO Jon Levine cited difficulties in securing basic construction materials, such as electrical panels, which have led to significant delays in the completion of expansion projects, including the Hagerstown cultivation facility.

However, MariMed remains optimistic about its future prospects in Maryland’s cannabis market. The company plans to continue pursuing additional dispensary acquisitions, with the aim of reaching the state-allowed maximum of four stores. And by strategically expanding its footprint in Maryland, the company will be able to capitalize on the state’s growing demand for adult-use cannabis products and position itself as a key player in the region’s cannabis industry.

#3: Tilray

Canadian cannabis and beverage company Tilray Brands, Inc. (NASDAQ: TLRY) revised its financial outlook for fiscal year 2024 during its third-quarter earnings call. The company’s Chief Financial Officer, Carl Merton, lowered the 2024 guidance, citing challenges in meeting previously announced projections, notably in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) and adjusted free cash flow. 

Tilray CFO disclosed during the earnings call that the earlier forecast of $68 million-$78 million in adjusted EBITDA for 2024 was no longer attainable. Consequently, the company revised its adjusted EBITDA range to $60 million-$63 million. Additionally, Tilray no longer anticipates achieving positive adjusted free cash flow for the entirety of the fiscal year.

As for the third-quarter results, the company posted a net loss of $105 million for the quarter ended Feb. 29, with net revenue totaling $188.3 million. While revenue increased by approximately 30% compared to the previous year, it declined from the second quarter of 2024. The revenue mix comprised $54.7 million from beverage alcohol, $63.4 million from cannabis, $56.8 million from distribution, and $13.4 million from wellness.

Considering Canada’s intricate cannabis excise tax structure, Tilray executives voiced anticipation ahead of the federal budget release, particularly regarding a parliamentary finance committee proposal to cap excise taxes on marijuana products at 10% of their value. Tilray CEO, Irwin Simon, estimated potential annual savings of $80 million if the proposal were implemented, highlighting the impact of such a change on the company’s finances.

Looking ahead, Tilray eyes the prospect of selling pharmaceutical-grade medical cannabis in the U.S. following potential rescheduling from Schedule 1 to Schedule 3, potentially diverging from current strategies pursued by American multistate operators. 

Additionally, Tilray operates a medical marijuana distribution business in Germany, where recent legislative shifts may open new avenues for growth. With the removal of medical cannabis from the Narcotics Act, the company anticipates an expansion in the German medical cannabis market, facilitating easier prescription access for patients and potentially broader health insurance coverage.

Top Psychedelic Companies for Week

#1: Optimi Health

Canadian psychedelics company Optimi Health Corp. (OTC: OPTHF) solidified its international presence by striking a deal to supply psilocybin to a research institute in New Zealand. The agreement, which was made with the Mātai Medical Research Institute on behalf of the Tū Wairua Project, marked Optimi’s first venture into the New Zealand market.

Under this partnership, Optimi will provide its British Columbia-made psilocybin extracts for a clinical study focused on addressing methamphetamine use disorder among native Maori tribal members. The initiative aims to revive ancient healing practices using natural medicines within the indigenous Māori community.

Optimi’s CEO, Bill Ciprick, expressed the significance of this collaboration in honoring the cultural heritage of the Māori people; “This agreement marks our entry into a new market and underscores the historical and cultural importance of the work being undertaken by our colleagues in New Zealand to honour and respect the indigenous heritage of the Māori people,” Bill Ciprick said in the press release.

The study aligns with the indigenous tribe’s mission to reconnect with traditional healing methods utilizing natural flora and fauna. Jody Toroa, trustee of Rangiwaho Marae, emphasized the importance of utilizing Optimi’s natural fungi, which closely resembles local indigenous species, over synthetic alternatives. According to her, this approach ensures the integrity of the project and facilitates the reclaiming of cultural knowledge and customary practices. “Alongside many First Nations peoples, we have a relationship with native flora and fauna as a source of healing and reconnection to our respective indigenous cultural practices,” Toroa said. 

#2: Awakn

Awakn Life Sciences Corp. (CSE: AWKN) (OTC: AWKNF) expanded its presence in U.S. southern states through a licensing partnership with Rivus Wellness and Research Institute in Oklahoma City. This marked Awakn’s debut in the U.S. southern states, bringing its innovative treatment for Alcohol Use Disorder (AUD), Awakn Kare, to a new region. 

Awakn Kare has shown remarkable efficacy in trials, with an 86% abstinence rate six months post-treatment, far surpassing the current standard of care. The partnership grants Rivus access to Awakn’s therapies and training for practitioners, while Awakn receives fees and revenue shares.

CEOs of both companies expressed excitement about the collaboration, emphasizing a shared commitment to providing superior addiction treatments. Anthony Tennyson, CEO of Awakn, said “We are excited to partner with Rivus and their excellent team, there is shared ethos and vision between the two organizations which is important. Being able to provide a whole new cohort of people in Oklahoma with a new more effective treatment option whilst they are in desperate need, is what drives us.” While Dr. Lane Peyton of Rivus also echoed this sentiment saying, “The Rivus Wellness and Research Institute has consistently served the Oklahoma City mental health community with innovative treatments, interventions, and preventions, and we feel that this partnership with Awakn Kare will benefit our patients tremendously.”

This partnership reflects a significant advancement in addressing the need for more effective AUD treatments in the United States, offering hope for improved outcomes and transformed lives. 

Key Takeaways; Cannabis Sector

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

Key Takeaways; Psychedelic Sector

• Awakn partnered with Oklahoma clinic for addiction treatment.

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

Top Marijuana Companies for Week

#1: Canopy Growth

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

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

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

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

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

#2: Trulieve

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

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

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

#3: Goodness Growth

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

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

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

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

#4: Avant Brands

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

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

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

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

Top Psychedelic Company for Week

#1: Awakn

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

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

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

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

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

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

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

Key Takeaways; Cannabis Sector

• High Tide reported break-even net income amid record cannabis sales in the first quarter of 2024.
• TerrAscend is claiming a $26 million tax refund, as they unveiled a strategy to navigate 280E challenge.
• Cresco is struggling with losses; Nonetheless, they’re eyeing new cannabis markets.
• Cannabis REIT Chicago Atlantic reported 17% interest income increase for 2023.
• Ayr Wellness CEO is optimistic about future adult-use marijuana markets.

Key Takeaways; Psychedelic Sector

• Awakn unveiled a breakthrough in alcohol use disorder treatment.

This week was ablaze with financial reports from several cannabis players, revealing a notable trend: many cannabis multistate operators (MSOs) are seeking 280E tax refunds to bolster their financial health. While this move seems to improve their balance sheets and cash flows, it also raises concerns about future tax burdens, because should 280E persist, these gains could turn into future tax burdens. Nonetheless, the elimination of 280E would be a game-changer, but its fate hangs in the balance, mainly due to uncertainty regarding the DEA’s potential rescheduling of cannabis from Schedule 1 to Schedule 3.

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

Top Marijuana Companies for Week

#1: High Tide

High Tide Inc. (NASDAQ: HITI), a prominent Canadian cannabis retailer based in Calgary, Alberta, reported a significant financial milestone in its first-quarter fiscal results for 2024. Despite industry-wide challenges, the company announced break-even net income and positive free cash flow.

During the November-January quarter, High Tide witnessed a notable increase in revenue, reaching 128.1 million Canadian dollars ($94.6 million), marking an 8% rise compared to the previous year.

The company also reported generating CA$3.6 million in positive free cash flow for the quarter, indicating a healthy financial position. It stated that it aims to sustain this positive cash flow throughout fiscal 2024, with CA$28.7 million in cash reserves as of January 31.

Noteworthy achievements during the quarter included a record CA$7.3 million in sales from its Cabanalytics Business Data and Insights platform, along with a substantial increase in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to CA$10.4 million, marking a 90% growth year-over-year.

The company’s loyalty programs also saw significant traction, with 32,000 people enrolled in its paid loyalty program and over 1.32 million memberships in the Cabana Club loyalty program as of March 2024, showcasing High Tide’s commitment to customer engagement and retention.

High Tide CEO, Raj Grover, emphasized the importance of reaching break-even net income, highlighting it as a critical milestone within the company’s trajectory, particularly in the context of the global cannabis market; “I am very proud to announce that High Tide has reached break-even net income this quarter, which is a critical milestone in our ongoing corporate trajectory and is a rarity in the global cannabis space,” Grover said in a news release.

#2: TerrAscend

TerrAscend Corp. (OTC: TSNDF), a major player in the multi-state marijuana industry, made headlines with its recent announcement during the release of its fourth-quarter and full-year 2023 financial results. The company revealed plans to halt tax payments under Section 280E of the Internal Revenue Code, alongside hints regarding their legal rationale.

TerrAscend, headquartered in Canada, intends to file amended tax returns for 2020, 2021, and 2022, with the expected refunds covering federal and state taxes from 2020 and 2021.

According to Executive Chair, Jason Wild, the company’s revised tax stance could lead to amended returns and an estimated refund of around $26 million. This decision follows the reclassification of $59.2 million in tax liabilities on TerrAscend’s balance sheet as of the close of 2023, as stated by Chief Financial Officer Keith Stauffer during the company’s fourth-quarter earnings call.

Stauffer indicated that TerrAscend will adopt a conventional taxpayer approach moving forward, bypassing the implications of 280E. When pressed for specifics on the legal strategy regarding nonpayment of taxes under 280E, Stauffer alluded to a legal interpretation similar to that outlined in the ongoing Boies Schiller lawsuit, where cannabis companies are contesting federal marijuana prohibition under the Controlled Substances Act.

This announcement from TerrAscend coincides with a period in the cannabis industry marked by companies exploring strategies to mitigate 280E tax burdens. Trulieve Cannabis Corp. (OTC: TCNNF) has already received substantial tax refunds, while Ascend Wellness Holdings, Inc. (OTC: AAWH) also filed amended federal tax returns and anticipates refunds and Jushi Holdings Inc. (OTC: JUSHF) has also outlined their own strategies regarding 280E.

In terms of financial performance, TerrAscend reported a significant increase in net revenue for the quarter ending December 31, reaching $86.6 million, up by 25.4% compared to the same period in 2022. However, the company posted a quarterly net loss from continuing operations amounting to $41.8 million.

Furthermore, for the full-year 2023, TerrAscend reported net revenue of $317.3 million, marking a 28% year-over-year increase, alongside a net loss from continuing operations totaling $82.3 million.

#3: Cresco

In 2023, Cresco Labs Inc. (OTC: CRLBF), a prominent Chicago-based cannabis multistate operator, faced significant financial setbacks, recording a staggering $180 million net loss for the year, according to their fourth quarter and full-year financial report.

This loss was primarily attributed to the company’s exit from two state markets and the collapse of a high-profile $2 billion merger with Columbia Care, now known as The Cannabist Company Holdings Inc. (OTC: CBSTF).

However, amidst the adversity, Cresco managed to end the year on a positive note, reporting a fourth-quarter profit of $4.8 million on revenue of $188.2 million. This marked a significant turnaround from previous quarters and showcased the company’s ability to adapt and recover. Furthermore, as of the beginning of 2024, Cresco reported holding $109 million in cash and equivalents, indicating a solid financial position to pursue its growth strategies amidst a rapidly evolving industry landscape.

Looking ahead, Cresco is prioritizing markets like Florida and Ohio, aiming to position itself strategically for potential regulatory changes. Unlike some competitors, the company is not banking solely on federal cannabis reform or expecting tax refunds under Section 280E of the Internal Revenue Code. Instead, it plans to make substantial investments in key markets and evaluate opportunities as they arise.

#4: Chicago Atlantic

Chicago Atlantic Real Estate Finance, Inc. (NASDAQ: REFI), a cannabis real estate investment trust (REIT) based in Illinois, announced a significant increase in net interest income for the year 2023. According to a recent financial news release, the company’s net interest income surged to $57.1 million, marking a notable 17% rise compared to the previous year ending on December 31.

During the fourth-quarter earnings call, senior management at Chicago Atlantic highlighted the growing prospect of federal marijuana reform, which they believe is driving investment and enhancing equity for their clients. They expressed optimism regarding potential changes in legislation, including the rescheduling of marijuana and the elimination of Section 280E of the Internal Revenue Code, which could significantly improve cash flow for borrowers associated with the company.

Despite a slight decline of 5.8% in net income in the fourth quarter compared to the previous quarter, attributed to increased management and incentive fees, Chicago Atlantic remains bullish about the future outlook. Co-CEO Tony Cappell emphasized the rising demand for credit within the cannabis industry, particularly as states like Ohio gear up for recreational cannabis launches and potential adult-use legalization looms in Florida; “The demand for credit in this capital-constrained industry should only accelerate as a result,” Cappell said.

As of Dec. 31, Chicago Atlantic had committed to lending approximately $378.8 million across 27 portfolio investments, signaling its substantial involvement in financing cannabis real estate ventures.

In addition to its financial performance, Chicago Atlantic also announced two promotions within its senior management team. Former co-President Peter Sack was appointed co-CEO alongside Tony Cappell, while Phil Silverman, who previously served as interim Chief Financial Officer, was appointed permanently to the position.

#5: Ayr Wellness

In a recent earnings call with investors and analysts, David Goubert, the CEO of Ayr Wellness Inc. (OTC: AYRWF), a Miami-based multistate operator (MSO), expressed confidence in the company’s ability to leverage upcoming adult-use marijuana markets. During the earnings call, Goubert highlighted Ayr’s strategic positioning, noting that only 15 of its 91 retail stores are currently operating in adult-use markets. He believes this positions Ayr favorably to tap into the potential of emerging recreational opportunities, particularly in states like Ohio, Florida, and Pennsylvania.

Additionally, during the earnings call, Ayr reported a 10% increase in full-year revenue, totaling $463.6 million for 2023 compared to $421.4 million in 2022. Goubert attributed this growth to the expansion of retail operations in Florida and wholesale activities in New Jersey. The company’s wholesale business, initiated in New Jersey in the third quarter of 2022, is set to expand into Massachusetts, New Jersey, and Ohio in the current year.

Despite the revenue growth, Ayr reported a total net loss of $279.5 million for 2023, with a quarterly net loss of $30.3 million ending December 31. However, in February, Ayr successfully completed a debt extension, retiring or deferring approximately $400 million of debt, which is expected to bolster the company’s financial position moving forward.

Top Psychedelic Company for Week

#1: Awakn

Awakn Life Sciences Corp. (OTC: AWKNF) a biotechnology company specializing in medication-assisted treatments for addiction, particularly Alcohol Use Disorder (AUD), successfully concluded an investigative study on a proprietary S-ketamine oral thin film (OTF) formulation. Administered sublingually, this formulation demonstrated significant dissociative effects, akin to intravenous racemic ketamine, and effectively reduced alcohol cravings in harmful drinkers.

This achievement follows Awakn’s recent global licensing agreement with LTS Lohmann Therapie-Systeme AG for the S-ketamine OTF, securing access to Phase 1 clinical trial data and patents. Leveraging this agreement, Awakn has designated the program AWKN-002 for AUD treatment in the US market, intending to advance to late-stage clinical trials following a planned pre-IND meeting with the FDA in the first half of 2024.

AWKN-002, coupled with manualized relapse prevention cognitive-behavioral therapy (CBT), is poised to broaden access to ketamine treatment due to its rapid onset and offset of action compared to intravenous ketamine. This expansion aligns with Awakn’s commitment to reaching more patients in need of life-saving addiction treatments.

Key Takeaways; Cannabis Sector

• Curaleaf reported strong growth in 2023, amidst global expansion plans.
• MariMed reported revenue growth and net loss in 2023; alongside 2024 growth forecast.
• Cronos Group reported improved financial performance in 2023.
• Planet 13 announced a public offering to raise $11.3 million.
• AFC Gamma’s Q4 report revealed challenges and optimism in cannabis lending.

Key Takeaways; Psychedelic Sector

• Awakn announced listing on the Canadian Securities Exchange.
• FDA granted breakthrough therapy designation to MindMed’s LSD candidate for generalised anxiety disorder.

In a rollercoaster week for MSOs, the cannabis industry faced both triumphs and challenges. Despite many positive Q4 reports in late February, this week witnessed an unusual trend as only a few large MSO reported their financials. Surprisingly, the market responded with increased selling even after companies displayed strong financial performances, highlighting the ongoing turbulence in the sector.

However, amid all the ups and downs, there’s a beacon of hope shining through. The cannabis landscape is brimming with potential, especially with the exciting possibility of federal legalization on the horizon. As the industry eagerly anticipates this transformative step, the future looks bright, even though it’s still uncertain.

In this weekly roundup, we delve into the latest developments and initiatives across the cannabis and psychedelic sectors. From groundbreaking medical research to emerging therapeutic applications and shifts in legal frameworks.

Top Marijuana Companies for Week

#1: Curaleaf

Curaleaf Holdings, Inc. (OTC: CURLF), a major player in the cannabis industry, recently reported significant revenue growth for the fourth quarter of 2023, reaching $345.3 million, representing a 1.5% increase over the previous year and a 3.6% increase over the third quarter.

Despite a net loss of $57.7 million from continuing operations during this period, Curaleaf’s full-year revenue for 2023 soared to $1.35 billion, marking a 6% year-over-year increase. This growth signals Curaleaf’s enduring presence as the largest publicly traded marijuana operator by market capitalization.

Despite reporting a net loss for the year, the company remains financially robust, with $91.8 million in cash and total debt of $587.8 million at the end of 2023. The company said that it is exploring strategies to optimize its financial performance, including potential legal challenges related to tax regulations under Section 280E of the Internal Revenue Code.

Looking ahead, Curaleaf stated that it is focused on expanding its footprint in both domestic and international markets. The company aims to capitalize on new opportunities in states such as New York, Ohio, Florida, and Pennsylvania, as well as key European countries like Germany, the U.K., and Poland. It also plans to leverage the recent legalization of cannabis in Germany to further its European presence.

Curaleaf’s financial performance in 2023 reflects both the opportunities and challenges facing the cannabis industry. Despite posting losses, the company’s revenue growth and strategic initiatives highlight its resilience and long-term vision for success.

As Curaleaf continues to explore new markets and expand its product offerings, it remains at the forefront of the evolving cannabis landscape, poised to capitalize on emerging opportunities and drive sustainable growth in the years to come.

#2: MariMed

MariMed Inc. (OTC: MRMD), a Massachusetts-based marijuana multistate operator, reported its financial performance for the full-year and fourth quarter of 2023. The company experienced substantial revenue growth but also reported a net loss during the period.

In 2023, MariMed’s revenue surged to $148.6 million, marking nearly an 11% increase from the previous year’s $134 million. The boost in revenue was primarily attributed to wholesale expansion and new asset openings. Despite the revenue growth, the company reported a net loss of $16 million for 2023, a significant contrast compared to the $13.6 million profit in 2022.

For the fourth quarter ending Dec. 31, 2023, MariMed reported a net loss of $10.1 million and revenue of $38.9 million. This represents an increase in losses compared to the same period in the previous year.

Increased competition in Illinois and construction delays at its processing facility in Norwood, Massachusetts, were cited as contributing factors to MariMed’s financial performance challenges. Additionally, regulatory issues in the company’s home state further complicated matters.

The company’s CEO, Jon Levine, expressed frustration over unexpected delays, such as prolonged wait times for an electrical panel; “Who would have thought that an electrical panel would take six months to get?” Levine said during the call. These circumstances influenced MariMed’s cautious approach to projecting growth for 2024.

MariMed outlined a conservative growth forecast for 2024, projecting revenue growth of 5%-7% and capital expenditures of $10 million. The company emphasized its focus on key operating milestones, including the commencement of wholesale operations in Illinois, to position itself for long-term growth.

Furthermore, to fuel future growth, MariMed secured financing without diluting shareholder equity. In November 2023, the company refinanced $58.7 million in debt, ensuring favorable terms for a 10-year period.

Looking ahead, MariMed anticipates operational expansions, including the transition to a permanent facility in Illinois and the acquisition of operating assets in Maryland.

#3: Cronos Group

Canadian cannabis producer Cronos Group Inc. (NASDAQ: CRON) made significant strides in reducing its losses in the fiscal year 2023, narrowing down to $74.5 million (101 million Canadian dollars).

The company’s consolidated net revenue saw a slight uptick, reaching $87.2 million from $86.7 million in the previous year. Cronos attributed this increase primarily to higher sales of cannabis flower and extracts in Canada, as well as the commencement of sales in Germany and Australia.

However, the company faced challenges in Israel, experiencing a decline in cannabis flower sales due to pricing pressure amidst a competitive market and currency fluctuations against the U.S. dollar.

In terms of product categories, cannabis flower sales slightly decreased to $62.1 million, while cannabis extracts witnessed a 9% increase to $24.6 million. Revenue from other sources saw a small decline. Geographically, sales in Canada surged by 15%, reaching $64.7 million, whereas sales in Israel dropped by 30.1% to $21.1 million. Sales from other countries doubled from the previous year.

Moreover, Cronos achieved cost savings of $30 million in 2023, surpassing its initial target, with further savings anticipated in general and administrative as well as research and development expenses. Additionally, As of December 31, 2023, Cronos held cash and cash equivalents amounting to $669.3 million positioning it in a strong financial position for expansion.

Looking ahead, the company stated that it remains vigilant regarding potential impacts from geopolitical conflicts, particularly the Israel-Hamas war, on its operations and personnel in Israel.

#4: Planet 13

In a strategic move aimed at bolstering its financial position, Planet 13 Holdings Inc. (OTC: PLNH), a prominent marijuana multistate operator, announced the pricing of a public offering to generate gross proceeds totaling at least $11.3 million.

The Las Vegas-based company announced plans to sell 18.75 million units at a rate of 60 cents per unit through an underwritten public offering. Each unit encompasses one common share with no par value alongside one warrant, which enables the acquisition of an additional share at 77 cents within a five-year timeframe, subject to certain adjustments.

Planet 13 further disclosed that the underwriters, spearheaded by Beacon Securities, retain a 30-day over-allotment option to procure “up to an additional 2,812,500 shares and/or warrants.” Should this option be exercised in its entirety, it would furnish the company with $12.9 million in gross proceeds.

In a statement, Planet 13 outlined its intentions regarding the utilization of the raised funds. The company aims to allocate the proceeds towards working capital and general corporate endeavors, including but not limited to acquiring additional retail cannabis licenses within Nevada, expanding its retail footprint in Florida and Illinois, and implementing various capital enhancements.

The offering closed on March 7, marking a significant development in the trajectory of Planet 13, which operated across multiple states including California, Florida, Illinois, and its home base of Nevada.

#5: AFC Gamma

AFC Gamma, Inc. (NASDAQ: AFCG), a publicly traded cannabis industry lender, reported its financial performance for the fourth quarter and full fiscal year 2023. The company reported nearly $16 million in net interest income for Q4, marking an 18.9% decline from the same period in 2022. The full-year net interest income for 2023 was $64.2 million, reflecting a 14% decrease from 2022.

Despite these figures, AFC Gamma faced challenges, posting a quarterly net loss of $9.2 million compared to a net income of $2.9 million in the same quarter of the previous year. The full-year net income for 2023 was nearly $21 million, down from $35.9 million in 2022. CFO, Brandon Hetzel, attributed the difference between distributable earnings and net loss to increased unrealized losses on loans held at fair value and a rise in current expected credit losses reserve.

CEO Daniel Neville discussed the company’s positive outlook, noting an expanding pipeline driven by what they term “cannabis 3.0 players.” “Many of these companies are building through a combination of organic growth and opportunistically acquiring distressed assets,” Neville stated. “We are excited to finance many of these operators that have clean capital stacks and are unburdened with debt, sale-leasebacks or legacy tax liabilities.”

As per the recent financial result, AFC Gamma is actively reducing exposure to underperforming assets, with two borrowers currently in receivership. The company’s year-end financials revealed cash and cash equivalents of $121.6 million, total assets of $466.6 million, and total liabilities of $146.5 million.

Additionally, AFC Gamma recently announced a strategic move to split into two entities, separating its non-cannabis commercial real estate assets to create Sunrise Realty Trust. This restructuring underscores AFC Gamma’s commitment to refining its focus and optimizing its lending activities within the evolving cannabis industry landscape.

Top Psychedelic Companies for Week

#1: MindMed

In a significant development for the field of psychedelic medicine, Mind Medicine (MindMed) Inc. (NASDAQ: MNMD) received breakthrough therapy designation from the FDA for its LSD candidate, MM120, aimed at treating generalised anxiety disorder (GAD). Alongside this milestone, MindMed unveiled pivotal 12-week data from its Phase 2b study and provided insights into its Phase 3 program plans.

MindMed’s Phase 2b study yielded promising results, showcasing the sustained efficacy of MM120 over a 12-week period. Administered as a single oral dose, MM120 demonstrated substantial improvements in the Hamilton Anxiety rating scale (HAM-A) compared to placebo. Notably, the 100-µg dosage exhibited a 65% clinical response rate and a 48% clinical remission rate, indicating its potential as a viable treatment option for individuals grappling with GAD.

The FDA’s recognition of MM120 marks a significant advancement in the therapeutic application of psychedelics. MindMed’s MM120 joins the ranks of breakthrough therapies, underscoring the growing acceptance of psychedelic compounds as potential treatments for mental health disorders.

With the breakthrough therapy designation secured, MindMed plans to proceed with an End-of-Phase 2 meeting with the FDA in the first half of 2024. Following this, the company aims to initiate its Phase 3 clinical program in the second half of the year, further advancing MM120 towards potential regulatory approval.

#2: Awakn

Awakn Life Sciences Corp. (OTC: AWKNF) a clinical-stage biotechnology firm dedicated to developing therapy-assisted treatments for addiction, particularly focusing on Alcohol Use Disorder (AUD), announced its approval to list the common shares of the company on the Canadian Securities Exchange (CSE) under the symbol “AWKN” effective February 13, 2024. This decision came as a significant strategic move, aligning with Awakn’s commitment to advancing its business operations and enhancing shareholder value.

Awakn ceased trading on Cboe Canada as of the close of trading on February 12, 2024. Shareholders did not need to take any action regarding this change of listing.

Awakn operates at the forefront of clinical-stage biotechnology, focusing on developing innovative medication-assisted treatments for addiction, with a primary emphasis on addressing AUD. AUD impacts approximately 51 million individuals in the US and key European markets, affecting a staggering 285 million people globally, for whom existing treatment modalities often fall short. Awakn’s mission is to deliver breakthrough therapeutics to individuals grappling with addiction, aiming to revolutionize the standard of care in this domain.

The company’s strategic roadmap is centered on commercializing its robust research and development pipeline across diverse channels, thereby ensuring broad accessibility to its groundbreaking treatments.

As Awakn embarked on this new chapter of growth and expansion with its listing on the CSE, it reaffirmed its dedication to advancing the frontiers of addiction therapy and creating sustainable value for its stakeholders.

Key Takeaways; Cannabis Sector

• AFC Gamma announced a spinoff, creating two specialized companies in cannabis and commercial real estate.
• Aurora Cannabis welcomed a new CFO, as they completed share consolidation.
• Ascend Wellness expanded operations with a second acquisition in Massachusetts.
• Agrify reported strong Q4 results with lower losses, but investors await revenue clarity.

Key Takeaways; Psychedelic Sector

• Awakn announced listing on the Canadian Securities Exchange.

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: AFC Gamma

AFC Gamma, Inc. (NASDAQ: AFCG) recently revealed plans to undergo a strategic separation by spinning off its commercial real estate arm into a new independent entity named Sunrise Realty Trust, Inc. (SUNS). The move aims to establish two distinct publicly traded companies, each with a clear focus on their respective industry. The separation is expected to be completed by mid-2024, pending regulatory approvals.

The Florida-based marijuana-sector real estate lender is restructuring to enhance its appeal to investors and provide clearer investment propositions. The newly formed Sunrise Realty Trust intends to operate as a real estate investment trust (REIT) and will concentrate on commercial real estate ventures in the southern United States.

Sunrise Realty Trust, led by incoming CEO Brian Sedrish, aims to become a prominent player in commercial real estate debt markets. With around $115 million in assets and two commercial real estate loans already funded, SUNS will focus on various commercial real estate debt instruments, including senior mortgage loans and mezzanine loans, with an emphasis on opportunities for value creation and recapitalization in the Southern U.S.

“We believe that CRE [Commercial Real Estate] debt markets today present a significant opportunity to capitalize on market dislocations precipitated by the rise in interest rates, declining liquidity, and a retrenchment of banks from CRE lending,” said Brian Sedrish.

Upon completion of the separation, both AFC Gamma and SUNS will operate as independent entities with their own investment teams and boards of directors, mainly composed of independent members. While there will be some overlap in corporate management roles, each company is expected to benefit from a separate cost of capital and attract investors aligned with its growth opportunities.

CEO of AFC Gamma, Daniel Neville, expressed confidence in the strategic move, stating, “As separate companies, we believe each business will be better positioned to pursue tailored growth strategies.”

Shareholders of AFC Gamma will receive SUNS shares on a pro-rata basis as part of the spinoff, and a special cash dividend will be distributed. The successful execution of the spinoff remains contingent on regulatory approvals, and the process does not require shareholder approval.

#2: Aurora Cannabis

Aurora Cannabis Inc. (NASDAQ: ACB), a prominent player in the Canadian cannabis industry, made significant moves as it appointed Simona King, a seasoned executive from Bristol-Myers Squibb Company (NYSE: BMY), as its new chief financial officer. The announcement, which was made by the company on February 20, 2024, also included the completion of its share consolidation.

The appointment of Simona King marks a strategic transition for Aurora Cannabis, as she brings a wealth of experience from her tenure at Bristol Myers Squibb, a multinational pharmaceutical giant. King steps into the role previously held by Glen Ibbott, one of Aurora’s longest-serving executives. Ibbott, known for his dedication and contributions to the company since 2017, decided to step down to explore new opportunities. Despite his departure from the CFO position, Ibbott will continue to serve Aurora in an advisory capacity in the coming months.

Aurora’s CEO, Miguel Martin, acknowledged Ibbott’s substantial contributions, saying, “Since 2017, Glen has dedicated immeasurable time, energy, and passion to shaping Aurora into a leading medical cannabis company; and we have been fortunate to have his leadership over the years as we navigated this emerging industry. We wish him all the best for his future endeavors.”

Additionally, the company announced the completion of its share consolidation process. In late January, Aurora unveiled its plan to consolidate shares on a 10-to-1 basis, a move aimed at restoring compliance with Nasdaq’s minimum bid-price requirement and enhancing access to institutional investors. The consolidation plan effectively reduced Aurora’s outstanding shares from 475,903,822 to 47,590,382, streamlining the company’s capital structure and bolstering its financial stability.

The appointment of Simona King and the completion of the share consolidation reflect Aurora Cannabis’s proactive approach to adaptability and growth in a dynamic industry landscape. As the company continues its journey, these strategic initiatives position Aurora to capitalize on emerging opportunities and drive sustainable value for its stakeholders.

#3: Ascend Wellness

Ascend Wellness Holdings, Inc. (OTC: AAWH) announced its acquisition of a second cultivation license and associated operations in Massachusetts, further solidifying its presence in the state’s emerging cannabis market.

The company’s CEO, John Hartmann, expressed enthusiasm about the acquisition, emphasizing Ascend’s dedication to Massachusetts and its commitment to expanding cultivation and production capabilities within the state. He stated, “Densifying our key markets is a stated strategy for our business, and this reinforces that focus.”

Ascend’s decision to expand comes on the heels of significant growth in both wholesale and retail markets in Massachusetts. The company currently operates three retail stores in Boston, Newton, and New Bedford, which have experienced a surge in consumer demand. Hartmann attributed this demand to the success of the Simply Herb brand, introduced in the state less than two years ago. According to data from BDSA, Simply Herb has quickly risen to become the top-selling brand in Massachusetts, outpacing competitors in fourth-quarter sales.

The newly acquired facility, located in Amesbury, is pending regulatory approval, anticipated to be granted in the first half of 2024. Until approval is secured, Ascend will operate the facility under an interim consulting agreement. The Amesbury facility boasts a 54,000 sq. ft. area, with plans for significant investment to expand canopy space to 15,000 sq. ft. and establish a state-of-the-art kitchen.

When combined with Ascend’s existing cultivation and production facility in Athol, Massachusetts, the acquisition will increase the company’s total cultivation space in the state to an impressive 70,000 sq. ft. of canopy. This expansion positions Ascend Wellness Holdings as a key player in Massachusetts’ rapidly evolving cannabis industry.

#4: Agrify

Agrify Corporation (NASDAQ: AGFY) recently made headlines with its preliminary unaudited financial results for the fourth fiscal quarter of 2023. While Agrify showcased notable reductions in losses, it notably omitted any mention of revenue figures, leaving investors and analysts speculating about the company’s financial performance.

 In the latest announcement, Agrify reported a significant decrease in its net loss for the fourth quarter, which is expected to stand at a historical low of $750,000. This marks a notable improvement compared to the $2.1 million net loss reported in the third quarter and the staggering $58 million loss in the fourth quarter of 2022. Additionally, the loss from operations is projected to decrease by 46% to a historical low of $2.5 million, down from $4.6 million in the third quarter.

Agrify’s optimism extends further as it anticipates achieving its lowest net cash burn in company history for the fourth quarter. Furthermore, it aims to approach cash flow break-even by the second half of 2024, indicating a promising trajectory towards financial sustainability.

Despite the positive projections, Agrify left stakeholders wanting more, as it refrained from disclosing revenue figures, a crucial metric that reflects the company’s ability to generate income and sustain growth. While reductions in losses are undoubtedly commendable, investors are keen to assess the company’s revenue streams and overall financial health.

Agrify assured stakeholders that official results will be released by the end of March, shedding light on its financial performance and the progress of its projects. Until then, investors will eagerly await further insights into Agrify’s revenue generation capabilities and its path towards profitability.

Top Psychedelic Company for Week

#1: Awakn

Awakn Life Sciences Corp. (OTC: AWKNF) a clinical-stage biotechnology firm dedicated to developing therapy-assisted treatments for addiction, particularly focusing on Alcohol Use Disorder (AUD), announced its approval to list the common shares of the company on the Canadian Securities Exchange (CSE) under the symbol “AWKN” effective February 13, 2024. This decision came as a significant strategic move, aligning with Awakn’s commitment to advancing its business operations and enhancing shareholder value.

Awakn ceased trading on Cboe Canada as of the close of trading on February 12, 2024. Shareholders did not need to take any action regarding this change of listing.

Awakn operates at the forefront of clinical-stage biotechnology, focusing on developing innovative medication-assisted treatments for addiction, with a primary emphasis on addressing AUD. AUD impacts approximately 51 million individuals in the US and key European markets, affecting a staggering 285 million people globally, for whom existing treatment modalities often fall short. Awakn’s mission is to deliver breakthrough therapeutics to individuals grappling with addiction, aiming to revolutionize the standard of care in this domain.

The company’s strategic roadmap is centered on commercializing its robust research and development pipeline across diverse channels, thereby ensuring broad accessibility to its groundbreaking treatments.

As Awakn embarked on this new chapter of growth and expansion with its listing on the CSE, it reaffirmed its dedication to advancing the frontiers of addiction therapy and creating sustainable value for its stakeholders.