Key Takeaways; Cannabis Sector

• Turning Point Brands’ growth is being driven by Zig-Zag, as Q3 sales increased 23% sequentially to $52.1 million.
• Canopy and Acreage entered into new U.S. strategic arrangement, as the company accelerates entry into the U.S. cannabis market.
• Verano refinanced its $350 million credit facility.
• The Green Organic Dutchman and BZAM Cannabis entered into a binding agreement to merge.

Key Takeaways; Psychedelic Sector

• Awakn obtained funding to increase its commercial operations in the Nordic region.

The price of cannabis stocks skyrocketed this week following the publication of poll results from Monmouth University, which indicated that more than two-thirds of Americans support the legalization of the possession of small amounts of marijuana for personal use. The marijuana sector, which is still in its infancy, appears to be benefiting significantly from Americans’ positive attitude toward the legalization of marijuana. As a result, more investors are beginning to participate in the sector, as the industry’s competitive climate continues to develop.

Below is a review of the top companies in the cannabis and psychedelic industries that dominated the news this week.

Top Marijuana Companies for Week

#1: Turning Point Brands

Turning Point Brands, Inc. (NYSE: TPB) announced financial results for the third quarter ended September 30, 2022. According to Turning Point, net sales declined 1.9% to $107.8 million, but net sales for Stoker’s Product and Zig-Zag rose 10.0% and 23.3%, respectively.

According to Turning Point Brands, Zig-Zag and Stoker’s Segments maintained solid double-digit growth during the quarter, despite a difficult economic environment and consumers still feeling the effects of inflationary pressures. The company stated that Zig-Zag benefited from strong growth in the U.S. papers and Canadian businesses during the quarter as well as the successful introduction of CLIPPER lighters.

For the quarter, the gross profit for the Zig-Zag Products segment rose 18.3% to $28.0 million. Additionally, the Company estimates that $5 million in sales throughout the Zig Zag portfolio were carried over from the fourth quarter. This results clearly indicate that Turning Point Brands’ growth is being driven by Zig-Zag brand.

For the full fiscal year 2022, the company forecast Zig-Zag Products sales of $186 to $191 million.

#2: Canopy Growth

Tuesday morning saw a sharp increase in the price of Canopy Growth Corp. (TSX: WEED) (NASDAQ: CGC) shares, after the company announced a strategy to accelerate its entry into the U.S. cannabis industry and unleash the value of its full U.S. cannabis ecosystem through the creation of a new U.S.-domiciled holding company, Canopy USA, LLC. and the execution of a deliberate and highly structured process.

The Smiths Falls, Ontario-based company made an announcement on Tuesday regarding the launch of Canopy USA, which will enable the acquisitions of the American cannabis companies that Canopy had committed to buy once recreational marijuana usage became legal in the United States. These agreements include the whole acquisition of the multistate operator Acreage Holdings, Inc. (OTC: ACRHF), as well as the acquisitions of Jetty Extracts, a producer of extracts, and Wana Brands, a producer of edibles. All deals are subject to shareholder approval.

“This footprint is expected to enable Canopy USA to accelerate market expansion as key states across the country continue to allow adult-use cannabis,” CEO David Kline said on a conference call with analysts.

#3: Verano Holdings

Verano Holdings Corp. (CSE: VRNO) (OTC: VRNOF), a marijuana multistate operator, and Chicago Atlantic, a cannabis sector real estate lender, entered into a credit agreement to renew Verano Holdings Corp.’s current $350 million credit facility, extending the maturity date to October 30, 2026. The credit facility was initially signed in July 2020, and according to regulatory filings, it has been modified several times since then.

According to Verano, the decision to refinance the debt would provide the company more flexibility in how it manages its debt. According to a Thursday news release, the senior secured loan now bears a fluctuating annual interest rate, which is now at 12.75%.

“The ability to incur an additional $120 million in indebtedness secured by real estate that is currently unencumbered is expected to enable the company to lower its blended total cost of debt,” Verano said in the release.

#4: The Green Organic Dutchman

Two licensed cannabis producers are coming together in Canada’s latest cannabis industry merger. This follows the announcement that The Green Organic Dutchman Holdings Ltd. (OTC: TGODF), located in Mississauga, Ontario, and privately owned, BZAM Cannabis, with headquarters in Vancouver, had entered into a legally binding agreement to merge their businesses.

The merger is an all-stock transaction. And shareholders of BZAM will ultimately own around 49.5% of the combined business. The merger is anticipated to close on November 8, 2022.

Based on retail sales from June to August 2022, the combined company is projected to rank as the sixth-largest cannabis producer in Canada. Furthermore, the merged company forecasts to have adjusted EBITDA that is positive by the middle of 2023 and net revenue of at least $100 million for the calendar year 2023.

In calendar year 2021, TGOD and BZAM generated net revenues of $30.2 million and $32.2 million, respectively; from January to September of the current year, 2022, TGOD and BZAM have recorded net revenues of and $31.6 million and $32.7 million, respectively; this is already an increase from the prior year, despite there being more months left in the year.

Following this disclosure, shares of The Green Organic Dutchman increased by 30%, closing at about six and a half cents by the end of the trading day.

Top Psychedelic Companies for Week

#1: Awakn

Awakn Life Sciences Corp. (NEO: AWKN) (OTC: AWKNF), a biotechnology company that generates revenue through the research, development, and commercialization of therapeutics to treat addiction with a near-term focus on Alcohol Use Disorder (AUD), announced that its wholly-owned subsidiary, Awakn Oslo AS, had signed a financing agreement with TD Veen AS, a family-owned Norwegian investment company, that is also a shareholder in Awakn.

The company said it plans to expand its clinics operation in the Nordic region, following a recent management forecast that indicated a great performance and an increasing demand for Awakn’s treatments, since debuting in Norway late last year. Under its expansion plans, Awakn intends to open a second Norwegian clinic in Trondheim, making it the company’s fourth clinic overall, and relocate its current clinic in Oslo to a larger location with a big capacity for treating more patients. Awakn anticipates that both of the Norwegian clinics will be able to conduct clinical trials and perform research on-site.

Additionally, Awakn stated that, Dr. Lowan Stewart, a prominent specialist and forerunner in ketamine-assisted therapy in Norway, will continue to serve as the executive director of Awakn’s Nordic operations, and be in charge of the anticipated expansion.

Anthony Tennyson, Awakn CEO, commented on this significant announcement saying; “We are excited to be pushing into our next phase of growth in the Nordics. We have been very happy with the reaction to Awakn and our offering in Norway and the growing demand backs that sentiment up.”

Key Takeaways; Cannabis Sector

• Tilray soared more than 30%; the company relaunched its medicinal cannabis oral solution in Ireland; and reported a 10% revenue increase for the first quarter of fiscal year 2023.
• Aurora repurchased debt worth $23 million.
• Curaleaf completed purchase of Tryke for $181 million; the stock skyrocketed 33%.
• WM Technology received a consensus ‘moderate buy’ rating from analysts as the stock surged 64%.

Key Takeaways; Psychedelic Sector

• Analyst Patrick Trucchio from H.C. Wainwright & Co. reiterated a $10 buy rating for Awakn shares.

The cannabis sector had a terrific week, with stocks surging on numerous exchanges late on Thursday afternoon after President Biden unexpectedly announced that he would pardon thousands of people who had been found guilty in federal court of possessing marijuana for personal use. In addition, the President pledged to launch a review of the plant’s classification under the Controlled Substances Act, which could result in a potential change in the drug’s federal classification. At the moment, marijuana is listed as Schedule 1 substances, alongside drugs like heroin.

President Biden said in a statement, “we classify marijuana at the same level as heroin – and more serious than fentanyl. It makes no sense. Too many lives have been upended because of our failed approach to marijuana. It’s time that we right these wrongs.”

The announcement made by President Biden was seen as one of his first significant steps toward decriminalizing marijuana, thus fulfilling his campaign promise to nullify earlier federal possession convictions and start the process of potentially reducing the drug’s legal categorization. The federal decriminalization of marijuana will undoubtedly be a key development for the global legal cannabis industry.

Below is a review of the top companies in the cannabis and psychedelic industries that dominated the news this week.

Top Marijuana Companies for Week

#1: Tilray

Tilray Brands, Inc. (NASDAQ: TLRY) stock rallied more than 30% on Thursday afternoon. TLRY shares saw the first boost in bullish trading in months as a result of the U.S. President move to pardon thousands of citizens charged federally with simple possession of marijuana. This significant gain was the biggest one-day moves the marijuana stock has seen this year.

This week, the company announced the relaunch of its medicinal cannabis oral solution in Ireland, which is covered by the nation’s Medical Cannabis Access Program. Denise Faltischek, Chief Strategy Officer, and Head of International Business at Tilray Brands, said, “We are extremely proud to relaunch in Ireland with an expanded footprint. The MCAP reimbursement approval is a tremendous step in providing patients with greater access to Tilray’s high-quality medical cannabis products that address their needs. We remain dedicated to do our part to increase access for patients in need around the world.”

Additionally, the company announced its financial result for the first fiscal quarter that ended on August 31, 2022. According to the released financial figures, Tilray’s first quarter cannabis sales for the fiscal year 2023 increased 10% sequentially to $58.6 million, further confirming the company’s position as a world leader in the cannabis industry.

#2: Aurora

Aurora Cannabis Inc. (NASDAQ: ACB), a Canadian marijuana company, trimmed its debt by repurchasing convertible senior notes valued at about 31.3 million Canadian dollars ($23 million). According to a Friday morning press release, Aurora paid CA$29.8 million in cash to repurchase some of the notes, representing a 5.45% discount from the notes’ par value.

The Edmonton, Alberta-based producer said it repurchased the notes “to reduce the company’s debt and annual cash interest costs” and will save approximately CA$11.9 million in annual cash interest savings from note buybacks “made from Q3 2022 onwards.”

In June, Aurora repurchased roughly $20 million of the same senior convertible notes. The 5.5% senior convertible notes were originally issued in early 2019 and raised $345 million. According to the terms of agreement, the notes will mature in February 2024.

Aurora stock price also soared on Thursday as President Biden’s comments on marijuana sparked a little more optimism in the industry. During regular trading, Aurora’s price rose from roughly $1.20 per share to over $1.30 per share.

#3: Curaleaf

Curaleaf Holdings, Inc. (CSE: CURA) (OTC: CURLF) was one of hottest cannabis stocks on Thursday, following the pro-cannabis news from President Joe Biden. With a market valuation of more than $4 billion, CURLF stock has grown to become one of the most valuable marijuana plays. Curaleaf surged 33% on Thursday, with shares closing at $6.19 per share.

The cannabis multistate operator announced that it had completed the previously announced acquisition of Arizona-based Tryke Companies for a total of $181 million in cash and stock. As a result of the decline in the value of Curaleaf’s stock, the effective price was reduced from $286, which was the agreed amount when the deal was announced in November last year.

Curaleaf is based in Massachusetts and is listed on the Canadian Securities Exchange (CSE). Federal legalization of marijuana would mean that the company could list its shares on a U.S. stock exchange, which will eventually attract more investors. For now, unless you’ve got access to the CSE, you’ll have to buy its shares over the counter.

With vertically integrated operations in 21 states, including Massachusetts, New York, and Florida, Curaleaf is one of the biggest MSOs in the country. With federal legalization, its income will only increase. Additionally, the company has established a foothold in the German market thanks to the recent completed 55% ownership in Four 20 Pharma GmbH, one of the top medical marijuana manufacturers in the Germany. By early 2024, marijuana for adult use is anticipated to be legal in Germany.

#4: WM Technology

Although WM Technology, Inc. (NASDAQ: MAPS) is a smaller-cap stock, it attracted a lot of attention on Thursday after President Biden made pro-cannabis statements. As a result, the stock increased by nearly 64%, closing at $2.65 per share on Thursday.

It’s critical to comprehend the ownership structure of the company in order to determine who is actually in charge. In the case of WM Technology, institutional investors own a respectable stake in the company, 70.66%, making them the group with the largest share. This suggests that the stock has been examined by the analysts working for those institutions, and they like it. But they could be mistaken, just like anyone else.

Nevertheless, a number of research analysts have recently made favorable remarks about MAPS shares, indicating that they anticipate the stock will continue to increase and that the growth will hasten once marijuana is decriminalized.

Top Psychedelic Companies for Week

#1: Awakn

According to a research note by H.C. Wainwright & Co. analyst, Patrick Trucchio, Awakn Life Sciences Corp. (NEO: AWKN) (OTC: AWKNF) is one of the best-positioned companies to benefit from the strong potential of psychedelics in alcohol use disorder (AUD), a market that is estimated to be worth more than $20 billion globally.

In an investment report that was published on H.C. Wainwright & Co. BlueMatrix research library, Trucchio said, “with a potential addressable patient population in Western markets that exceeds 30 million people and with 10% or less of these patients in active treatment, the unmet medical need and opportunity for innovative approaches to treatment is very high. As such, we believe the potential for psychedelics with therapy to ameliorate AUD could represent a significant opportunity for drug sponsors, which is highly underappreciated by investors.”

In his research report, Trucchio discussed about Awakn and Cybin Inc. (NYSE: CYBN), two publicly traded biopharma firms based in Canada that have considered psychedelic therapies to treat AUD. In addition, he reiterated his buy ratings for Awakn stock, stating that the stock is worth an estimated $10 per share, which would be a robust increase from the current price.

In addition to MDMA therapy for AUD, Awakn is researching the use of the NMDA receptor antagonist, ketamine, in combination with psychotherapy to treat various addiction disorders. On the other hand, Cybin is currently examining deuterated psilocybin, or CYB003, as a treatment for severe depressive disorder.

Key Takeaways; Cannabis Sector

• High Tide’s third-quarter revenue rose 18% to C$95.4 million; in addition, the company closed a $19 million non-dilutive credit arrangement.

Key Takeaways; Psychedelic Sector

• Cybin announced key research and development milestones, beating anticipated timeframe.
• Awakn reported strong Q2 earnings. The company also announced participation in a global investment conference.

This week, the S&P 500 fell more than 4% as a result of the Federal Reserve raising interest rates by 75 basis points to combat rising inflation. The stock market is typically being pressured lower by these rising interest rates and currency volatility, and the longer the interest rates stay higher, the more the concerns of a global recession continue to intensify. Though the market is currently in a bearish state, some sectors are nevertheless doing well despite the uncertainties. Here is a weekly summary of the top companies in the cannabis and psychedelic sectors that dominated the news.

Top Marijuana Companies for Week

#1: High Tide

High Tide Inc. (NASDAQ: HITI), a prominent cannabis retailer with brick-and-mortar stores and global e-commerce assets, reported its third quarter 2022 financial results, showing a 98% growth in revenue and the eleventh consecutive quarter of positive adjusted EBITDA.

High Tide, Canada’s biggest non-franchised retailer, announced third-quarter revenue of C$95.4 million, up 18% from the second quarter and up 98% from the same period last year. In addition, the company reduced its net loss from $12 million a year earlier and from C$8 million sequentially to C$2.72 million. Additionally, earnings came in at a loss of five cents per share compared to a loss of three cents per share during the same period last year.

High Tide CEO, Raj Grover, said in a news release, “High Tide now sits within striking distance of having the highest revenue of any cannabis company reporting in Canadian dollars.”

The financial figures showed that C$80.7 million of sales was generated in Canada, while C$12.7 million and C$1.9 million of revenue came from the United States and internationally respectively. In comparison to the same period the previous year, revenues increased by 110% in Canada, 33% in the United States, and 1,486% internationally.

High Tide’s discount membership model, which saw daily store sales increase by 18% over the previous quarter and by 46% since last year, is largely responsible for the company’s success in brick-and-mortar stores.

According to Statistics Canada data, the Cabana Club loyalty program, which is the largest in Canadian cannabis retail, surpassed 750,000 Members, with over 90% of daily transactions conducted by club members. It was also reported that the 750,000 Cabana Club members, represented more than 12% of the cannabis consumers across the country, excluding Quebec.

“This membership number was our initial goal when we launched our discount club model last October, and we have now met our target in under a year,” Grover said. “We look forward to rolling out our Cabana Elite program in the near term. This program will let members access additional benefits for a small recurring fee, while the existing Cabana Club program will remain free of charge,” he said.

High Tide also announced the closing of a $19 million senior secured credit facility with connectFirst Credit Union Ltd., with an initial period of five years and at connectFirst’s floor interest rate. The company said that it intended to increase the number of stores with the money raised.

Top Psychedelic Companies for Week

#1: Awakn

Awakn Life Sciences Corp. (NEO: AWKN) (OTC: AWKNF) reported strong financial results as revenue increased along with patients, demonstrating the rising demand for addiction-focused psychedelic therapy. This revelation came after the Canadian biotechnology company released its financial report card for the second quarter ended July 31.

Through its clinics, Awakn reported revenues of C$339,872 for the second quarter, compared to zero the year before. The second quarter’s revenue increased by C$86,718, which was 34% increase compared to the first quarter.

According to the company, the delivery of ketamine-assisted therapy at the London, Bristol, and Oslo Awakn clinics was the main factor in the surge in revenue during the historically slowest time of the year for their services.

Over the course of the quarter, Awakn received approval for its Phase III clinical trial for ketamine-assisted therapy for alcohol use disorder treatment. Furthermore, the company was given C$2.5 million by the National Institute for Health and Care Research of the United Kingdom to pay for 66% of the trial’s expenses. This is the first time a government agency has funded a Phase III trial in psychedelics.

Anthony Tennyson, the CEO of Awakn, commented on the profitable results, saying “today’s results and revenue growth demonstrate the continued momentum building in our business and the successful execution of our business plan in both pillars of the business: R&D and Commercialization.”

The company reported that it had $481,830 in cash. Additionally, it announced the closing of a private placement in which 1,880,454 units were sold for $0.55 each, generating gross proceeds of $1,034,250.

Awakn stated that it expects to complete its behavioral study of ketamine in gambling addiction over the remaining months of the fiscal year. The company also anticipates that it’s going to receive regulatory and ethics permission for its Phase III clinical trial for ketamine-assisted therapy.

The company said it will also attempt to expand the commercialization of its therapeutic products in the United States and Canada, by securing more licensing partners to use its intellectual property, which includes ketamine-assisted therapy for the treatment of alcohol use disorder.

In addition to reporting strong revenue results, Awakn announced its participation in the H.C. Wainwright Global Investment Conference on September 27th at 10:00am ET.

#2: Cybin

Cybin Inc. (NEO: CYBN), a biopharmaceutical company dedicated to advancing psychedelics into therapeutics, said that it had achieved significant research and development milestones outlined in the company’s acquisition agreement with Adelia Therapeutics in 2020. The milestones were attained earlier than anticipated, which has aided Cybin in moving forward with the next stage of developing a clinical therapeutic.

The accomplishment of these milestones was essential in moving Cybin’s psychedelic programs from the lab to the clinic, which will give the company the opportunity to find potential new drug formulations and delivery systems, develop clinical protocols for psychedelic compounds, and support the clinical-stage development of CYBN’s proprietary CYB003 and CYB004 programs for major depressive disorder and anxiety disorders.

“It is extremely gratifying that we have been able to progress our ambitious R&D pipeline – from discovering new drug candidates to entering the clinic – ahead of our projected schedule,” said Cybin CEO, Doug Drysdale, in the press release.

The goal of Cybin is to develop safe and efficient treatments for patients to address a wide range of mental health conditions. To this end, the company collaborates with a network of top partners and internationally renowned scientists. Headquartered in Canada and founded in 2019, Cybin is operating in Canada, the United States, the United Kingdom, the Netherlands, and Ireland.

Key Takeaways; Cannabis Sector

• Glass House Brands closed the acquisitions two California dispensaries.
• Cansortium’s Q2 revenue rose to $22.4 million; the company forecasts 42% growth in 2022.

Key Takeaways; Psychedelic Sector

• Awakn’s technical analysis is growing stronger, according to a seasoned technical expert.
• MindMed announced positive results from a clinical trial for patients with anxiety; the company also announced participation in a Global Investment Conference.

Below is a weekly recap on the top companies that dominated the headlines in the cannabis and psychedelic sectors.

Top Marijuana Companies for Week

#1: Glass House Brands

 On September 7, 2022, Glass House Brands Inc. (NEO: GLAS-A) (OTC: GLASF), one of the fastest-growing vertically integrated cannabis companies, announced that it had completed the acquisition of two Natural Healing Center dispensaries in Grover Beach and Lemoore, California, after receiving all necessary local regulatory approvals. Furthermore, the company said that with immediate effect, the financial outcomes of the stores in Grover Beach and Lemoore will be consolidated into the financials of Glass House Brands.

Glass House announced on May 12, 2022, that it had signed agreements to buy 100% of the equity interests in three retail properties owned by Natural Healing Center; two operating retail dispensaries, Lemoore and Morro Bay, and one retail dispensary, Turlock, which was scheduled to open in Q4 2022. Following this, Glass House disclosed in their Q2 earnings release on August 11, 2022, that they had reached an agreement to purchase Natural Healing Center’s flagship Grover Beach operating dispensary for US$15.9 million, with US$8.1 million of the purchase price in assumed debt, US$7.7 million in stock, and US$0.1 million in cash net of working capital.

Grover Beach store is the gem in NHC’s collection of dispensaries, this is shown by the huge profits the dispensary delivers, for instance it brought in US$16 million in revenue in 2021. The dispensary is one of the only four total dispensaries in Grover Beach and given its high sales volume and reliable cash flow generation, it is the top taxpayer in the city.

#2: Cansortium

Cansortium Inc. (CSE: TIUMU) (OTC: CNTMF) released its financial results for the second quarter ending June 30, 2022. The company reported a 36% rise in revenue during the same period last year, from $16.5 million to $22.4 million. This revenue was higher than the average analyst estimates of $18 million from Yahoo Finance.

Cansortium’s rise in revenue came from Florida, where the company reported a 33% rise in revenue, from $14.2 million to $18.8 million. In addition, the net losses decreased from $25 million for the same period last year to $11.9 million this year.

“We generated a record quarter of results in Q2, highlighted by double-digit revenue growth, margin expansion and a material increase in adjusted EBITDA and cash flow generation,” said Cansortium CEO, Robert Beasley. “The investments we have made to add scale and improve cultivation in Florida are paying dividends. Our Sweetwater indoor cultivation facility is now fully operational and the yields in our Tampa facility have doubled from the start of 2022, all of which has led to dramatically improved productivity at the store level and a consistent increase in new patient count. In fact, revenue in Florida was up 16% from Q1 without adding a single new store during the quarter.”

Cansortium said it continues to forecast for revenue in 2022 to be in the $90-$95 million range, which would represent an increase of almost 42% from the midpoint of 2021. Additionally, Cansortium is still anticipating that adjusted EBITDA in 2022 will be in the $25–$28 million range, which would represent a roughly 35% increase from 2021.

Top Psychedelic Companies for Week

#1: Awakn

Clive Maund, a seasoned technical analyst, offered his opinion on Awakn Life Sciences Corp. (NEO: AWKN) (OTC: AWKNF) as its stock continues to strengthen. According to Clive Maund, the persistently strong upside volume from the middle of August has raised the accumulation line, strengthening the technical picture for the Awakn stock.

The expert believes that this indicates a soon-coming upside breakthrough for the stock, and his analysis is backed up by the well-developed double bottom pattern, which is visible on the 15-month chart.

According to Clive’s technical analysis, Awakn’s stock has a fairly strong technical setup and is therefore worth taking a risk on, in his opinion. Additionally, he adds that given the stock trades in respectable quantities on the US OTC market, traders should be pleased to go overweight on the stock.

Clive’s technical analysis on Awakn was published by Streetwise Reports, which is one of the leading sources of financial news and investment ideas.

Awakn Life Sciences is a biotechnology company that generates revenue by researching, developing, and commercializing therapeutics to treat addiction with a near-term focus on alcohol use disorder. The company’s primary goal is to offer effective therapies to addicts who are in great need. And in order to accomplish this, they aim to commercialize their pipeline of research and development across several channels. In addition to developing and testing a pipeline of innovative patentable pharmaceuticals with better qualities for treating addiction, Awakn is also conducting continuing clinical research programs on ketamine and MDMA-assisted therapy.

 #2: MindMed

After some much-needed positive news for investors, Mind Medicine (MindMed) Inc. (NASDAQ: MNMD), (NEO: MMED), reversed course and recovered with a great trading day on Thursday. This came after the company released some positive results from a clinical trial involving anxiety patients who received LSD as a placebo, in doses that were regulated.

In contrast to conventional LSD, which can relieve anxiety symptoms for up to four weeks with just one dose, MindMed’s patented MM-120 product seemed to provide patients with better advantages and benefits.

Commenting on this positive results, Rob Barrow, CEO and Director of MindMed, stated: “This paper further reinforces the positive preliminary evidence for LSD in patients who suffer from anxiety disorders. Acute administration of LSD produced long-lasting and notable reductions of anxiety and comorbid depression symptoms for up to 16 weeks. These results are encouraging and supportive of our proprietary MM-120 product candidate in its potential to one day offer a therapeutic benefit for patients suffering from GAD after just a single-dose administration.”

A peer-reviewed journal published the findings of this Phase 2B clinical experiment.

Given that the MindMed stock has been in free fall ever since its 1 for 15 reverse split a few weeks ago, this news was a positive sign for the company and some much-needed good news for investors.

In addition, the company announced that it will take part virtually in the H.C. Wainwright, 24th Annual Global Investment Conference, and its presentation will be accessible starting at 7:00 a.m. ET on September 12, 2022.

Key Takeaways; Cannabis Sector

• Aurora invested C$45 million to take control of a profitable agriculture grower.
• TerrAscend added to its purchase binge in Michigan by purchasing a $28.5 million cannabis dispensary.
• Statehouse’s mergers and acquisitions strategy is paying off as the company doubled second quarter revenue.

Key Takeaways; Psychedelic Sector

• Awakn announced expansion of commercial operations into Canada by signing a licensing partnership.

Below is a weekly recap on the top companies that dominated the headlines in the cannabis and psychedelic sectors.

Top Marijuana Companies for Week

#1: Aurora Cannabis

Amid a significant marijuana oversupply in Canada, Aurora Cannabis Inc. (NASDAQ: ACB) is expanding into the attractive flower and vegetable propagation industries by acquiring a controlling stake in Bevo Agtech, which is one of the biggest suppliers of flowers and vegetable seedlings in North America.

According to a press statement, the Edmonton, Alberta-based Aurora paid 45 million Canadian dollars ($35 million) in cash for 50.1% of Bevo. Furthermore, if Bevo meets specific financial targets, an additional $12 million in Aurora shares will be paid.

Carey Squires, Aurora’s head of corporate development and strategy, said Bevo’s expanding business and profitability was key to getting the deal done. The executive said Aurora plans to accelerate the plant propagation and ornamental business.

Bevo Agtech is an agricultural producer, which is based in Langley, British Columbia. The company operates 63 acres of greenhouses in B.C., where it propagates vegetable plants including tomatoes, peppers, and cucumbers as well as other plants such as flowers and grasses.

In addition, Bevo also agreed to pay up to CA$25 million for Aurora’s enormous greenhouse complex at Edmonton International Airport. Both parties agreed that the closing price will be based on Bevo successfully reaching financial milestones at the Sky facility. Additionally, Aurora said in its release that Bevo will continue to be run by the existing management team. And the company will take a controlling position on Bevo’s board.

#2: TerrAscend

TerrAscend Corp. (OTC: TRSSF) (CSE: TER), a multistate cannabis operator, is expanding its presence in Michigan by spending $28.5 million to buy a six-store chain, boosting the number of medicinal and adult-use marijuana shops it operates in the state to 17.

According to a news release, TerrAscend, which has offices in New York and Toronto, will purchase KISA Enterprises MI, LLC and KISA Holdings, LLC under a cash-and-stock transaction. Depending on the locale, TerrAscend will rebrand its stores as either Gage or Cookies companies.

TerrAscend entered the Michigan market for the first-time last year when it paid $545 million in shares to buy Gage Cannabis. According to TerrAscend Executive Chair Jason Wild, the acquisitions put the company in the driver’s seat in one of the most promising U.S. marketplaces. “Michigan is a key market for us,” he said in a statement. “This acquisition exemplifies our strategy of building depth to solidify our retail leadership while expanding profitability and scale in the state.”

Analyst estimates that Michigan’s recreational marijuana sales this year could total between $1.4 billion and $1.7 billion. This is means that with its recent acquisition spree in the state, TerrAscend is well poised to capitalize on this growing market.

#3: StateHouse Holdings

StateHouse Holdings Inc. (OTC: STHZF) (CSE: STHZ) share price plummeted in premarket trading on Friday, this was despite the company posting positive earnings results.

The West Coast vertically integrated holdings company, which is formerly known as Harborside, announced its financial results for the second quarter ending June 30, 2022, on August 25, 2022. As per the result, StateHouse totaled $34.6 million revenue in the second quarter, up 125% from $15.4 million in the same period last year.

StateHouse said that the increase reflected the acquisitions of Urbn Leaf and Loudpack, which were completed in March and April of 2022, respectively.

Commenting on the positive results, Ed Schmults, the company’s CEO said, “The second quarter was a landmark period for StateHouse, as we completed the acquisition of Loudpack to create a leading, fully integrated California cannabis company. We then launched the first phase of a major integration initiative, which was completed before the end of the quarter and resulted in significant annual cost savings.”

StateHouse stated that it aims to operate as a consumer-packaged products company with production, processing, brands, and retail stores in order to reduce its exposure to the volatile bulk cannabis market. The company also stated that in addition to continuing to reduce expenses, it also wants to become a scalable, controllable, profitable, and more predictable cannabis company.

In July, StateHouse disclosed that it had reached an agreement on a payment schedule with the Internal Revenue Service to settle and decrease federal tax liabilities, leading to a one-time non-cash gain of about $16.1 million. The company reported that it is still negotiating with the IRS on further outstanding taxes.

Top Psychedelic Company for Week

#1: Awakn

On August 18, 2022, Awakn Life Sciences Corp. (NEO: AWKN) (OTC: AWKNF) announced that it had entered into its first licensing partnership agreement in Canada with Wellbeings® Pain Management and Dependency Clinic, which is a company with roots in Ontario that focuses on multidisciplinary, evidence-based, best-practice and patient-centered care. The partnership will make it possible for Wellbeings to administer Awakn’s specialized ketamine-assisted therapy to patients who have AUD as a co-morbidity for pain.

As per the terms of the license agreement, Awakn will grant access to its proprietary therapeutics for AUD and provide training to Wellbeings practitioners, and in exchange, Wellbeings will pay Awakn an annual subscription and a revenue share for each treatment.

This was the second Licensing Partnership agreement that Awakn has signed in North America, and it came a week after the announcement of an agreement with Revitalist Lifestyle and Wellness Ltd. (OTC: RVLWF), which is one of the largest publicly listed U.S. based ketamine wellness-clinic chains.

Through these agreements, Awakn is now able to generate revenue from its proprietary therapies in several countries, including the United Kingdom, United States, Norway, and Canada.

Awakn’s introduction into the Canadian market is a game-changer because the most recent comprehensive cost assessment pegged the entire cost of alcohol-related harm to Canadians at $14.6 billion. The Canadian government also estimated that, prior to the pandemic, more over 19% of the population qualified as heavy drinkers. Therefore, by giving clinic owners access to a licensed, effective treatment option, Awakn seeks to assist those who are struggling with alcoholism.

Anthony Tennyson, Awakn CEO commented, “We are delighted to sign another Licensing Partnership agreement in quick succession. Expanding our revenue generation into Canada is another significant milestone for Awakn. Wellbeings share our vision and goal of making new more effective treatment options available to so many people who are suffering and will make another excellent partner as we start to disrupt the incumbent addiction treatment industry in North America.”

Key Takeaways; Cannabis Sector

• Cannabis REIT IIPR generated record revenue of $70.5 million in the second quarter.
• Green Thumb Q2 revenue increased 5%, to $254 million.
• Scotts Miracle-Gro share price soared, despite the company missing earnings estimates.

Key Takeaways; Psychedelic Sector

• Awakn received CA$2.5 government funding for phase III trial.

July was a great month for cannabis stocks, as more companies reported their second quarter financial results. Looking ahead to August, we expect the sector to continue the good performance as more companies are expected to announce their financial reports. Below is a weekly roundup on the top companies that dominated the headlines in the cannabis and psychedelic sectors with top deals and good earnings reports.

Top Marijuana Companies for Week

#1: Innovative Industrial Properties

Innovative Industrial Properties, Inc. (NYSE: IIPR) the first and only real estate company listed on the New York Stock Exchange, focusing on the regulated U.S. cannabis industry, announced the results for the second quarter ended June 30, 2022 on August 3, 2022.

For the three months that concluded on June 30, 2022, IIP generated total revenues of about $70.5 million, up from around $48.9 million for the same period in 2021, or a 44% gain. According to the company, the main drivers of the record increase in revenue were, acquisition and leasing of new properties, additional improvement allowances and construction funding at existing properties that resulted in base rent adjustments, and contractual rental escalations at certain properties.

As of August 6, 2022, IIP owned 110 properties spread across the various states in the USA, totaling about 8.6 million rentable square feet. The company has also invested about $2.1 billion across its portfolio, which includes the purchase price, construction funding, and improvements reimbursed to tenants. Additionally, the company has committed an additional $209.6 million to pay for draws made by its tenants.

#2: Green Thumb

Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) released its financial results for the second quarter that ended on June 30, 2022.

Revenue grew to $254.3 million from $221.9 million in the same quarter previous year, a 4.8% sequential rise and a 14.6% year-over-year gain. This easily beat the Yahoo Finance average analyst estimates for sales of $248 million.

Additionally, the company outperformed analysts’ forecasts of $0.04 in earnings. In the second quarter of 2022, net income was $24.4 million, or $0.11 per basic share and $0.10 per diluted share, as opposed to the prior year’s second quarter, when net income was $22.1 million, or $0.10 per basic and diluted share.

According to GTI, the legalization of adult-use cannabis in New Jersey and Illinois, as well as the addition of 19 retail locations compared to the second quarter of last year, were the main drivers of revenue growth. Additionally, the company’s 77 open and operating retail stores saw an increase in foot traffic.

“We are pleased with our second quarter results, especially in this challenging economic environment. Five percent revenue growth and greater than 300 basis point improvement in Adjusted EBITDA margins over the previous quarter demonstrate the results of our focus. We continue to maintain a strong balance sheet, which gives us ample flexibility to support our growth initiatives,” said Green Thumb Founder, Chairman, and Chief Executive Officer Ben Kovler.

#3: Scotts Miracle-Gro

The Scotts Miracle-Gro Company (NYSE: SMG) saw a surge in its shares during early Tuesday, August 2 trading, this was despite the gardening company reporting dismal earnings results.

The lawn care and hydroponics company reported its third-quarter results for the period ending July 2, 2022, and revenues decreased by 26% to $1.19 billion, with decreases in both major business sectors; sales for the U.S. consumer division fell 14% to $904.5 million from $1.05 billion, while sales for the hydroponic company Hawthorne dropped by 63% to $154.5 million from $421.9 million in the same period last year.

Moreover, the sales of $1.23 billion were below the average analyst expectation on Yahoo Finance.

Scotts reported a $8.01 GAAP net loss per share, which includes pre-tax restructuring and impairment costs of $724.2 million. The non-GAAP adjusted earnings per share, which is the basis of the Company’s guidance, was $1.98.

However, on a positive note, SG&A declined 30% to $135.8 million as a result of cost-cutting initiatives and lower accruals for yearly incentive compensation.

Top Psychedelic Company for Week

#1: Awakn

Awakn Life Sciences Corp. (NEO: AWKN) (OTC: AWKNF), a commercial biotechnology company that generates revenue by researching, developing, and commercializing therapeutics to treat addiction with a near-term focus on alcohol use disorder (AUD), announced in July that the National Institute for Health and Care Research (NIHR), a UK government organization, had approved grant funding for 66% of the costs of Awakn’s Phase III clinical trial, which investigates the use of ketamine-assisted therapy for the treatment of AUD. It is estimated that the trial will cost CA$3.75 million in total, with Awakn funding approximately CA$1.25 million of that.

The funding will go toward Project Kestrel, which is Awakn’s primary clinical development program that aims to produce clear Intellectual Property and marketing authorization/regulatory approval for ketamine-assisted therapy for treating AUD in the US and the UK.

The Phase III trial is anticipated to be the largest ketamine-assisted treatment clinical trial to date and the only Phase III psychedelic clinical trial to ever receive government funding. To carry out the historic trial, Awakn will collaborate with the University of Exeter (UoE) and the UK’s National Health Service (NHS).

Professor Celia Morgan, Head of Ketamine-Assisted Therapy at Awakn and University of Exeter Professor of Psychopharmacology, will be in charge of the Phase III trial.

The CEO of Awakn, Anthony Tennyson, commented: “We are pleased with today’s news for several reasons. A government showing such strong support for this new type of treatment is a global first. Secondly, working with the NHS to deliver the treatment in their existing infrastructure is a huge statement of intent, but most importantly, for so many millions of people around the world suffering from alcohol addiction, a new treatment hope has just got one big ‘step’ closer. I could not be prouder of the Awakn team and our partners for making this a reality.”

 Key Takeaways; Cannabis Sector

• Greenlane provided an update on its strategy to generate more than $30 million in improved liquidity by year-end, as a result its stock price surged over 29%.
• iAnthus announced closing of recapitalization transaction, raising $25 million additional financing.
• Sundial Growers entered into a bid agreement for Zenabis Global’s assets.

Key Takeaways; Psychedelic Sector

• Awakn’s CEO to deliver presentation at H.C. Wainwright & Co. 1st annual mental health conference.

Below is a weekly roundup on the top companies that dominated the headlines in the cannabis and psychedelic sectors with top deals and announcements.

Top Marijuana Companies for Week

#1: Greenlane

Greenlane Holdings, Inc.  (NASDAQ: GNLN) announced update on a plan to generate more than $30 million in non-dilutive liquidity. Part of the company’s strategy to achieve this goal includes getting a loan to cover its working capital needs, selling the company’s headquarters building in Boca Raton Florida, and getting rid of non-sore and lower-margin inventory.

Greenlane said in a statement that for the past three months it has been engaged in an intensive and comprehensive process to select the ideal partner for an asset-based loan that can support its working capital needs. The company said it expects to execute an agreement by the early third quarter of 2022, which is expected to result in more than $10 million of liquidity. As of the last quarter, the company has current liabilities of $77 million and total liabilities of $91 million.

In addition, Greenlane has listed its headquarters building for sale in May 2022 and that it has gotten significant interest from several buyers amidst a strong Florida commercial real estate market.

Finally, the Company said it’s working to sell through its excess & obsolete (E&O) inventory of lower-margin, non-strategic products, along with reducing the overall level of inventory on hand. In May, the Company commenced its official E&O sales program internally and has since sold more than $1 million of previously reserved E&O inventory. Management anticipates that the proceeds from these E&O sales, combined with a general sell-down of other non-core third-party brand inventory, is expected to generate more than $10 million of liquidity for the Company.

With all of these moves, Greenlane said that it anticipates that it can generate more than $30 million of liquidity on a non-dilutive basis by the end of 2022.

Investors responded positively to Greenlane’s update on its strategy to generate more than $30 million in liquidity. And as a result of this announcement, the stock price of the company surged by over 29% pre-market on Friday, Jun 24, 2022.

#2: iAnthus

iAnthus Capital Holdings, Inc. (OTCPK: ITHUF) (CSE: IAN), which owns, operates and partners with regulated cannabis operations across the United States, announced on Friday, June 24 2022, that it had completed its previously announced recapitalization transaction. According to the company, the implementation of the recapitalization transaction resulted in various changes to the corporate governance and capital structure of the Company.

Following the Recapitalization Transaction’s completion, a number of the Secured Lenders and Consenting Unsecured Debentureholders purchased 8% senior secured debentures with a maturity date of June 24, 2027, and an aggregate principal amount of $25 million. The company stated that it will utilize the money raised from the sale of the additional secured notes for working capital, general corporate expenses, and charges and fees associated with the completion of the recapitalization transaction.

#3: Sundial

Sundial Growers Inc. (NASDAQ: SNDL) announced on Monday, June 20, 2022, that it had entered into a purchase agreement, in the form of a “stalking horse bid, pursuant to which the shares of Zenabis Global Inc. and the business and assets of its direct and indirectly wholly-owned subsidiaries would be acquired by Sundial. Earlier this month, Zenabis Global, which is a subsidiary of Quebec-based licensed cannabis producer HEXO Corp. (NASDAQ: HEXO), filed for creditor protection under Canada’s Companies’ Creditors Arrangement Act (CCAA) to restructure the business.

Hexo bought Zenabis only one year ago for huge deal of 235 million Canadian dollars ($185 million) in stock. This mega deal is one of the several recent acquisitions that have ultimately pushed the Quebec business to the brink of bankruptcy.

Although the Calgary, Alberta-based Sundial did not disclose the value of the bid. One of the assets covered by the bid agreement include the 380,000 square foot indoor growing facility in Atholville, New Brunswick, which has an annual production capacity of roughly 46,000 kg of dried cannabis and 15,000 kg of extraction capacity. The facility was granted authorization to export goods internationally to Israel, Malta, the UK, and the EU after receiving EU GMP certification. Additionally, the Zenabis Group and the Malta-based ZenPharm Limited have a joint venture agreement that permits commercial bulk imports into Malta from the Atholville facility and subsequent exports of completed medicinal cannabis products to the EU and the UK.

“We are committed to creating continuity for the Zenabis Group’s operations and employees and assisting Zenabis in good faith with its restructuring,” Sundial CEO Zach George said in a statement.

Sundial’s bid; however, is subject to the approval of the Quebec Superior Court. And the bidding procedures will be sought on July 5, 2022.

Top Psychedelic Company for Week

#1: Awakn

Awakn Life Sciences Corp. (NEO: AWKN) (OTC: AWKNF), a biotechnology company, that engages in the researching, developing, and delivering of psychedelic therapeutics to treat addiction and other mental health conditions in the United Kingdom and Europe announced its participation at the H.C. Wainwright Global Investment Conference from June 27 – 28, 2022 in New York.

The Toronto based company said that the company’s CEO, Anthony Tennyson, was going to deliver a key presentation at H.C. Wainwright & Co. 1st annual mental health conference on June 27, 2022.

Awakn is a top psychedelic company that is focusing on several forms of addiction treatment. Recently, the company initiated a behavioral study that looked into using ketamine to treat gambling disorder; the study will be the first worldwide examination of this method of treating gambling disorder. Additionally, the company submitted a PCT application for the use of ketamine and ketamine-assisted psychotherapy in the treatment of behavioral addictions. This came after the successful completion of company’s behavioral addictions study, and the data provided from the study was used in the patent filing.

In addition, the company recently stated in its recent financial results that it has $2.8 million in cash, and it expects to open more clinics soon. Awakn also said that it is hoping to receive regulatory and ethics approval for Phase III clinical trial for Ketamine-Assisted Therapy for the treatment of Alcohol Use Disorder

Key Takeaways; Cannabis Sector

• Tilray Brands announced accretive strategic transaction with HEXO.
• High Tide’s revenue skyrocketed by 98%.
• SpringBig became the largest publicly traded loyalty and marketing automation platform in the cannabis industry.

Key Takeaways; Psychedelic Sector

• Awakn reported financial results for quarter ended April 30, 2022.

Below is a weekly roundup on the top companies that dominated the headlines in the cannabis and psychedelic sectors with top deals and announcements.

Top Marijuana Companies for Week

#1: Tilray

Tilray Brands, Inc. (NASDAQ: TLRY) was able to negotiate a lower pricing for HEXO Corp. (NASDAQ: HEXO). The changes to the original deal included an additional discount on Tilray Brands’ purchase price as well as the reduction of the conversion price under the HEXO convertible notes. Under the new amendments, Tilray Brands’ purchase price was reduced from C$0.85 to C$0.40 per share. The acquisition deal is likely to close on or around July 15, 2022.

As part of the new deal, Tilray Brands will purchase the HEXO secured convertible notes from HT Investments MA LLC, which will include 100% of the existing $185 million outstanding principal balance of the HEXO convertible notes, as well as any accrued and unpaid interest. Under the terms of the amended agreements, Tilray will pay 89.2% of the HEXO convertible notes’ outstanding principal balance, which equates to a 10.8% discount on the outstanding principal amount.

Irwin D. Simon, Tilray Brands’ Chairman and CEO, said, “We believe HEXO continues to be the right strategic partner for Tilray Brands in Canada and, therefore, look forward to closing this transaction in July and working with HEXO to deliver on the promise and the potential of this partnership for our shareholders, consumers, and employees.”

Charlie Bowman, HEXO’s President and CEO, added, “The strategic alliance with Tilray Brands accelerates HEXO’s operational turnaround and unlocks capital to expand our market leadership globally. The partnership is an essential next step in improving our capital structure, and we’re confident that the synergies realized will reset the industry.”

#2: High Tide

After the market closed on Tuesday, Jun 14, 2022, High Tide Inc. (NASDAQ: HITI) released its financial results for the second fiscal quarter of 2022, which ended on April 30, 2022. According to the financial results, High Tide’s revenue climbed to $81.0 million from $40.9 million the previous quarter, which was a 98% increment. Sequentially, revenue increased by 12% compared to the first quarter of 2022. This was the second-highest quarterly sales amount reported in Canadian dollars by a Canadian cannabis company.

Additionally, in the second quarter, the net loss was reduced by 33% to $8 million, compared to a net loss of $12 million in the same period last year.

“Once again, I can proudly report that High Tide continues to see consistent and significant growth year-over-year and sequentially with every passing quarter, despite a persistently challenging macro environment and the state of the capital markets. Since its launch, the ongoing growth of our innovative discount club model has resulted in a 48% increase in daily same-store sales, contributing to our 98% revenue growth over the same quarter last year,” said Raj Grover, President, and Chief Executive Officer of High Tide.

Furthermore, High Tide said that through its subsidiaries in certain states in the US it plans to restart sales of hemp-derived cannabinoids, such as delta-8 tetrahydrocannabinol and delta-9 tetrahydrocannabinol, which are extracted from cannabis plants that meet the definition of “hemp” under the Agriculture Improvement Act of 2018.

In addition, High Tide said that it aims to expand revenue through the third fiscal quarter of 2022 and the rest of the year through organic growth and accretive M&A. The company wants to have at least 150 stores open, by the end of the year. Currently, its Canadian retail portfolio includes 126 stores. The company also stated that it plans to enter the British Columbia market in the third fiscal quarter of 2022 and that it will continue to grow strategically in other provinces where it already operates.

#3: SpringBig

SpringBig Holdings, Inc. (NASDAQ: SBIG) (NASDAQ: SBIGW) a leading provider of SaaS-based marketing solutions, consumer mobile app experiences, and omnichannel loyalty programs to the cannabis industry, and Tuatara Capital Acquisition Corporation (NASDAQ: TCAC) announced on June 15, 2022 that their previously announced business combination had been finalized.

On June 9, 2022, TCAC shareholders approved the Business Combination in a special general meeting. And as a result of the Business Combination’s completion, TCAC changed its name to SpringBig Holdings, Inc. Subsequently, the common stock and warrants of TCAC were renamed “SBIG” and “SBIGW,” respectively, and began trading on the Nasdaq Global Market on Wednesday, June 15, 2022.

SpringBig is the largest customer loyalty and marketing platform in the cannabis industry and is the provider of choice and trusted partner to many leading cannabis retailers and brands across North America. The Company serves over 1,300 clients with more than 2,400 retail locations.

Top Psychedelic Company for Week

#1: Awakn

Awakn Life Sciences Corp. (NEO: AWKN) (OTC: AWKNF) reported its financial results for the first quarter ending April 30, 2022. In contrast to the previous year, Awakn’s clinics brought in $253,154 in revenue, which was a 23.9% increase, compared to the three months ended January 31, 2022.

The company said the revenue increase was primarily driven by the provision of ketamine-assisted therapies at the Oslo clinic in Norway and the Bristol clinic, which is the flagship London clinic in the UK that just started offering treatments in April 2022.

Anthony Tennyson, Chief Executive Officer of Awakn Life Sciences, said, “Today’s results demonstrate the significant momentum building in our business across both our research and development pipeline and in our therapeutics commercialization business. The addiction treatment market opportunity is, unfortunately, large and growing, and Awakn is uniquely positioned to offer proven therapeutics supported by data to sufferers for whom the current standard of care is inadequate and relapse rates are unacceptably high.”

Moreover, Awakn stated that it is still concentrating on several forms of addiction treatment. Recently, the company initiated a behavioral study that looked into using ketamine to treat gambling disorder; the study will be the first worldwide examination of this method of treating gambling disorder. Additionally, the company submitted a PCT application for the use of ketamine and ketamine-assisted psychotherapy in the treatment of behavioral addictions. This came after the successful completion of company’s behavioral addictions study, and the data provided from the study was used in the patent filing.

In addition, the company stated that it has $2.8 million in cash, and it expects to open another clinic soon. Awakn also said that it is hoping to receive regulatory and ethics approval for Phase III clinical trial for Ketamine-Assisted Therapy for the treatment of Alcohol Use Disorder

Key Takeaways; Cannabis Sector

• Aurora reduced debt by buying back $20 million worth of convertible notes.
• Silver Spike co-led up to $170 million to CA marijuana company Shryne Group.
• Entourage Health reported record Q1 results, as revenue increased 17% to $15.8 million.
• Cansortium released revenue figures for Q1 with revenue increasing 30% to $19.7 million.

Key Takeaways; Psychedelic Sector

• Awakn initiated a follow-up behavioral study on gambling disorder.

The recent flux of psychedelics and cannabis companies into and out of profitability, as seen by their respective quarterly earnings results and yearly reports, provides an insight into what it takes to survive and prosper in these sectors. And it’s evident that strategic acquisition, development of novel therapies, and raising awareness and forming partnerships are the names of the game today, in what are still emerging industries that are clouded by challenges and potential. Below is a look at the top companies that dominated the headlines in these sectors during the course of the week.

Top Marijuana Companies for Week

#1: Aurora

Aurora Cannabis Inc. (NASDAQ: ACB), a Canadian company defining the future of cannabinoids around the world, announced on Friday, June 3, 2022 that it had repurchased an aggregate of approximately $25.3 million (US$20 million) principal amount of its convertible senior notes.

Aurora, which is based in Edmonton, Alberta, said it repurchased the notes on Friday to lower the company’s debt and annual cash interest payments. The convertible senior notes Aurora repurchased were initially offered in 2019 for gross proceeds of $345 million.

According to the company, since the third quarter, Aurora has repurchased notes worth 9.5 million Canadian dollars ($7.6 million) in annual cash interest savings. In addition, the company said that it currently has a cash balance of around CA$455 million.

According to a regulatory filing, Aurora repurchased CA$13.4 million of senior notes in the third quarter and additional CA$128 million of senior notes between the end of the quarter on March 31 and May 11. Aurora also raised $172.5 million in gross proceeds from a bought deal financing that closed earlier this week. The announcement of this deal had a negative impact on the company’s stock on Friday, May 27, when prices plunged by over 40%, causing a massive selloff. Investors will be hopeful that with the announcement that this bought deal offering has closed, stock prices will skyrocket to new highs.

#2: Silver Spike

Silver Spike Investment Corp. (NASDAQ: SSIC) announced it has co-led a senior secured term loan of up to $170 million to Shryne Group Inc. Shryne cultivates, manufactures, distributes, and retails branded cannabis products on a large scale, and owns and operates award-winning brands like as Stiiizy, which according to BDS Analytics is the top ranked brand in California and the third brand nationally.

According to Silver Spike Capital Head of Credit Frank Kotesen, the senior secured term loan is among the largest ever financial facilities offered to a private cannabis company. Shryne is a private company and according to its website, the company has 18 operating retail locations in California and 13 more in the development phase. In addition, the company has three distribution centers, with two more in the development. Shryne also has one outdoor growing facility, and two indoor grow facilities in development in Humboldt County. Additionally, the company operates three manufacturing facilities and is developing a fourth.

Based in New York, Silver Spike Capital is the parent company of Silver Spike Investment Corp, a specialized finance company that invests in the cannabis ecosystem through direct loans and equity ownership in privately owned cannabis companies.

Unfortunately, neither the names of the other loan participants nor the details of the loan were revealed, in the news release. Furthermore, it was not specified how the loan would be used.

#3: Entourage Health

On Monday Canadian cannabis company Entourage Health Corp. (TSX-V: ENTG) (OTC: ETRGF) announced its financial results for the first quarter ending March 31, 2022. Entourage reported that the total sales for the fourth quarter of 2021 was $15.8 million, up 17% from the previous quarter.

According to Entourage, the weighted average cost per gram of plants on hand from clone to harvest was $0.52 in the first quarter, compared to $0.63 in the fourth quarter. Additionally, the company also said that due to lower operating costs, the weighted average cost per gram of inventory on hand fell to $0.51 in the first quarter of 2022 from $0.66 in the fourth quarter of 2021.

In March 2022, Entourage announced that it had received an extension of its credit facilities’ maturity date from March 28, 2022, to May 31, 2022, as well as a deferral of certain financial covenants until May 31, 2022. In addition, Entourage and LiUNA Pension Fund announced the expansion of their existing credit facility on April 29, 2022, with an additional $15 million in funding available. During the announcement of this deal, Entourage said that the non-dilutive cash will be utilized for general working purposes in order to help the company grow more commercially.

Finally, in May 2022, Entourage announced proposed changes to its 8.5% unsecured convertible debentures, which would be voted on at a meeting of debenture holders scheduled for June 20, 2022.

#4: Cansortium

Cansortium Inc. (CSE: TIUM-U) (OTC: CNTMF) announced preliminary unaudited financial results for the first quarter ended March 31, 2022, on Tuesday, May 31, 2022. The company reported a 30% rise in revenue to $19.7 million, up from $15.1 million the previous year and $14.7 million in the fourth quarter. Unfortunately, there were no earnings or loss data released by the company.

However, the company did say that sales in 2022 will be in the region of $90–$95 million, which will represents a 45% increase from the midpoint of 2021. Moreover, Cansortium also expects adjusted EBITDA in 2022 to be in the $25–$28 million range, representing a 35% increase over 2021.

In addition, the company said it plans to open 4-6 more locations in Florida during 2022. They added that four of these locations have already been contracted and are in the process of being built.
Cansortium further stated that it plans to file its audited annual financial statements for 2021 and its unaudited interim financial statements for the first quarter of 2022 by June 8, 2022. They also stated that a conference call for shareholders and potential investors will be held shortly after that.

Top Psychedelic Company for Week

#1: Awakn

On Thursday, June 2, 2022, Awakn Life Sciences Corp. (NEO: AWKN) (OTC: AWKNF), a biotechnology company focused on researching, developing, and commercializing therapeutics to treat addiction with a near-term focus on Alcohol Use Disorder (AUD), announced that they have initiated a larger behavioral addiction study investigating ketamine as a treatment for Gambling Disorder.

On May 19, 2022, Awakn reported that they had completed a successful pilot study for a variety of behavioral addictions. Furthermore, Awakn filed a Patent Cooperation Treaty (PCT) for the treatment of behavioral addictions with ketamine and ketamine-assisted psychotherapy on May 26, 2022.

The larger placebo-controlled study will include 42 patients with Gambling Disorder who will undergo a memory reactivation treatment aimed at weakening the link between reward and addiction memories. This will be the world’s first study that aims to look into this technique for treating Gambling Disorder.

In addition, the study will use the latest brain imaging technique EEG (Electro Encephalography) to evaluate synaptic plasticity following the administration of ketamine. This aims to determine the window of maximal neuroplastic change. And because of the neuroplasticity, Awakn might be able to forecast when therapy will be most effective. Additionally, the researchers will also gather extensive pharmacokinetic (PK) data, examine metabolites, and look at neurological biomarkers as part of the study.

During this announcement, Awakn CEO Anthony Tennyson stated that the company is committed to help those who are suffering from addictions, and that the significant research and development milestones they have achieved in recent weeks have inspired them. He also congratulated the Awakn team of experts, as well as everyone engaged, including patients, clinicians, and caregivers, stating that none of this would have been possible without the team’s dedication.

Key Takeaways; Cannabis Sector

• Boston Beer announced the launch of a new line of cannabis-infused iced teas.
• Decibel reported rising revenue in Q1.
• Ayr Wellness reported positive revenue of $111.2 million, up 90% YoY.

Key Takeaways; Psychedelic Sector

• Awakn filed PCT application for the treatment of behavioral addictions.
• The FDA gave Revive Therapeutics positive feedback on the primary endpoint change.

As the cannabis sector evolves, certain trends are beginning to emerge. The most recent one is the sales drop in the first quarter. When many companies presented their first-quarter results, they informed investors that revenues declined after the fourth quarter but were ramping up in the second quarter. With that said, below is a weekly roundup on the cannabis and psychedelics sectors as more companies continued to release their quarterly financial reports this week.

Top Marijuana Companies for Week

#1: Boston Beer

On May 23, 2022, The Boston Beer Company, Inc. (NYSE: SAM), which is the manufacturer of renowned, high-quality brands like Samuel Adams, Truly Hard Seltzer, and Twisted Tea, announced the launch of TeaPot, a new line of cannabis-infused iced teas. TeaPot will be the company’s first infused beverage, and it will be sold in select Canadian provinces starting in July.

TeaPot combines actual tea with certain cannabis strains to improve its quality. The brand’s initial product is Good Day Iced Tea, which is made with real lemon black tea and infused with Pedro’s Sweet Sativa, a unique cultivar grown in Strathroy, Ontario by licensed producer Entourage Health Corp. (TSXV: ENTG) and marketed only in Canada under the Color Cannabis retail brand.

According to Headset retail figures, Canada’s infused beverage market share has surged by roughly 850 percent since 2020, making it nearly double the size of the US cannabis beverage market. According to TeaPot, the continuous rise of the cannabis beverage sector is encouraging, and they feel it is one of the next innovation frontiers. The brand also stated that they will continue to develop an attractive product pipeline in Canada’s federally controlled market, as they await more progress on US regulations.

#2:  Decibel

Decibel Cannabis Company Inc.  (TSXV: DB) (OTCQB: DBCCF) released its first-quarter financial results for the first quarter ending March 31, 2022. Decibel reported overall revenues of $23 million for the quarter, a significant increase over the fourth quarter and a significant increase over previous year’s revenue of $14 million in the same time period in 2021.

Despite the fact that the first quarter is traditionally a seasonally slow period, the company noted that net revenue growth was driven by the launch of Decibel’s new infused pre-roll lines and sustained growth in demand for flower, vape, and concentrate products.

Furthermore, Decibel reported a net loss of $4.37 million in the quarter. The company also said that they generated $2.86 million in revenue from operations, and that they had $7.3 million in net current assets.

Moreover, the company stated that it expects lower working capital requirements in 2022 and that its supply chain is improving. In addition, the company said that it has identified a number of initiatives and capital investments to help increase cash flow generation and manage working capital levels from Q2 2022 onward.

#3: Ayr Wellness

Ayr Wellness Inc. (OTC: AYRWF) announced financial results for the first quarter of 2022, with revenue up 90 percent to $111.2 million from $58 million the previous year. However, sales were down slight from the previous quarter’s $111.8 million. As for the fourth quarter of 2022, Ayr expects to generate $250 million in Adjusted EBITDA, $100 million in operating income, and $800 million in revenue on an annualized basis.

In addition, the company’s net losses were reduced from $16 million in the first quarter of last year to $9 million this year. Moreover, Ayr said it spent $33.2 million on capital expenditures in the first quarter and expects to spend another $37 million in the second half of 2022. The company also said that it had a cash balance of $78.7 million at the end of the quarter.

Top Psychedelic Companies for Week

#1: Awakn

Awakn Life Sciences Corp. (NEO: AWKN) (OTC: AWKNF), a biotechnology company focused on researching, developing, and commercializing therapeutics to treat addiction, announced the filing of a Patent Cooperation Treaty (PCT) application for the treatment of behavioral addictions with ketamine and ketamine-assisted psychotherapy on Thursday, May 26, 2022.

Last week, Awakn reported the successful conclusion of its behavioral addictions study, and the data from this study was included in the patent application. During this study, ketamine was tested as a potential novel treatment for Gambling Disorder, Internet Gaming Disorder, Compulsive Sexual Behavior Disorder, and Binge Eating Disorder.

PCT covers all behavioral addictions, as well as any recognized disorder or condition with obsessive signs. If the patent filing is approved, Awakn will have exclusive rights to employ ketamine and ketamine-assisted therapy to treat behavioral addictions. And with no effective pharmacological treatments for behavioral addictions currently available worldwide, the study findings and the potential patent filing position Awakn at the forefront of the industry at a time when behavioral addiction rates are rising at an alarming rate and sufferers having few treatment options that in most cases result in poor outcomes.

In response to this significant announcements, Awakn CEO, Anthony Tennyson, said that the announcement illustrated Awakn’s emphasis in researching, developing, and commercializing medications to treat addiction and other behavioral disorders.

#2: Revive Therapeutics

The worldview of Revive Therapeutics Ltd.’s (CSE: RVV) (OTC: RVVTF) Phase 3 clinical trial to assess the safety and efficacy of Bucillamine in the treatment of COVID-19 graced on Thursday, May 26, 2022, when the US Food and Drug Administration (FDA) appeared to be favorable to the company’s request to change the trial’s primary endpoints.

On May 16, 2022, Revive Therapeutics requested that the FDA determine and agree on a study that evaluated the safety and efficacy of Bucillamine, which an oral drug with anti-inflammatory and antiviral properties, in patients with mild to moderate COVID-19. Revive wanted FDA to assess the study’s potential new primary efficacy endpoints, such as the rate of sustained clinical resolution of COVID-19 symptoms, and thus have more meaningful study endpoints for the FDA to consider for potential Emergency Use Authorization.

On Thursday, Revive Therapeutics reported it had received positive comments from the FDA in regard to its request. And although the FDA has not yet granted the major endpoint change, the announcement on Thursday was enough to catch the attention of forward-thinking investors, hence pushing Revive shares higher by 21.06%.

Revive is a life sciences company that specializes in the research and development of therapeutics for infectious diseases and rare disorders. The company is prioritizing drug development efforts in order to take advantage of FDA regulatory incentives. Currently, the Company is exploring the use of Bucillamine for the potential treatment of infectious diseases, with an initial focus on severe influenza and COVID-19.