Key Takeaways; Cannabis Sector

• Canopy Growth bought California-based Jetty Extracts for $69 Million.
• Schwazze Q1 revenue surged 64% to $31.8 million; The company also bought Denver cannabis retailer grower for $3.2 million.

Key Takeaways; Psychedelic Sector

• Awakn completed world’s first ketamine study for behavioral addictions; The company also appointed new Chief Medical Officer.

It was another busy week for the legal cannabis industry, with more companies releasing their quarterly financial results. And, as more companies continue to release positive earnings reports, the trends and data, points to the cannabis industry’s continued growth. Also, despite the recent challenges that the global markets have faced, some companies in the sector are moving on with their expansion plans with more acquisitions. Below is a recap of the top companies that dominated the headlines with positive news.

Top Marijuana Companies for Week

#1: Canopy Growth

Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) announced on May 18, 2022, that it had entered into a definitive agreement to buy Lemurian, Inc., better known as Jetty Extracts, a California-based producer of high-quality cannabis extracts and pioneer of clean vape technology. The agreement gives Canopy Growth the right to acquire 100% of Jetty’s outstanding capital stock, subject to federal THC permissibility in the United States.

Under the agreements terms, Canopy Growth will make aggregate upfront payments of approximately USD$69 million in cash and Canopy Growth common shares; majority of which will be Canopy Growth common shares. The deal is however subject to certain adjustments.

Jetty is a top 10 cannabis brand in California, as well as a top 5 vape brand. The privately held company has pioneered the path for the most authentic and natural vape experience available to consumers, thanks to award-winning technology. Additionally, in the extremely competitive California cannabis industry, Jetty has achieved strong growth over the past two years while generating positive EBITDA as a leader in solvent-less vaping and a pioneer of extraction-related intellectual property. Jetty also founded and operates The Shelter Project, a need-based organization that has given cancer patients over $1 million in free cannabis products.

This deal present Jetty with prospective chances to work across Canopy’s powerful U.S. THC ecosystem that already includes the right to acquire both Acreage Holdings, Inc. (OTC: ACRHF), and Wana Brands, as well as a major conditional ownership stake in TerrAscend Corp. (OTC: TRSSF). The two companies are also looking into ways for Jetty to bring its brand and innovative brand portfolio to the Canadian recreational market in order to fully realize Jetty’s industry-leading IP’s North American cross-border potential.

#2: Schwazze

Medicine Man Technologies, Inc. (OTC: SHWZ) also known as Schwazze, announced financial results for the first quarter ended March 31, 2022, on May 16, 2022. Revenues for Q1 2022 totaled $31.8 million, including $26.5 million in retail sales, $5.2 million in wholesale sales, and $0.04 million in other operating revenues. Compared to $19.3 million in Q1 2021, this represented a $12.4 million or 64% increase. The higher sales were attributed in significant part to additional dispensary sales, with the company acquiring fourteen new retail dispensaries in Q1 2022.

Furthermore, the company stated that its 2022 guidance is unchanged. The guidance, which is for a fourth-quarter 2022 (Q4 2022) annualized run rate, indicates that revenue is expected to be in the range of $220 million to $260 million, and adjusted EBITDA is expected to be in the range of $70 million to $82 million.

In addition to announcing the first quarter financial results, Schwazze also announced that it had signed a $3.2 million agreement deal to acquire assets of Urban Health & Wellness, a cannabis retailer and cultivator in Denver. According to a news release, the proposed deal comprises Urban’s dispensaries as well as a 7,200-square-foot indoor cultivation facility with 2,700 square feet of canopy. Under terms of the deal, Schwazze will pay $1.3 million in cash and $1.9 million in shares upon the closure of the purchase.

The proposed acquisition is the latest in a string of maneuvers by Schwazze, which has acquired cannabis assets, including retail stores and cultivators in Colorado and New Mexico. The company also stated that after the purchase is completed, it’s portfolio will include 23 cannabis retail stores and four grow operations. Additionally, the company also said that it had acquired final permission from the NEO Exchange in Toronto to list its common shares.

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 with a near-term focus on Alcohol Use Disorder (AUD), announced on May 19, 2022, the completion of the world’s first ketamine treatment study for behavioral addictions. Gambling Disorder, Internet Gaming Disorder, Binge Eating Disorder, and Compulsive Sexual Behavior were among the behavioral addictions studied.

Prof. Celia Morgan, Awakn’s Head of Ketamine-Assisted Therapy, Professor of Psychopharmacology at the University of Exeter in the United Kingdom, and an internationally recognized expert in the therapeutic use of ketamine, led the study. The study looked into ketamine as a potential new treatment for behavioral addictions by allowing the brain to make new connections and alter behavior.

Awakn stated that the study’s findings suggest that the desired benefits are being achieved through potentially unique pathways, and that the findings warrant a bigger study and further investigation, which it is currently undertaking. Awakn also said that the study backs up the company’s IP strategy and existing patent applications, therefore establishing the company as a leader in the behavioral-addiction treatment research and development market.

Moreover, Awakn also announced that Dr. Arun Dhandayudham will join the company as Chief Medical Officer. The company said that Dr. Ben Sessa will step back from his role as CMO to become the company’s Head of Psychedelic Medicine, therefore allowing him to continue his work in research, academic and training activities, as well as a greater focus on the day-to-day treatment of his clients as the Lead Physiatrist for Awakn Clinics Bristol.

According to Awakn, Dr. Dhandayudham, who’s a Consultant in Addictions Psychiatry since 2005 and a graduate of Oxford and Cambridge, will add a lot of clinical and leadership expertise to the company. Dr. Dhandayudham is currently the Executive Medical Director of WDP, a prominent third-sector organization that provides drug and alcohol support and treatment services throughout the UK, where he previously served as joint CEO. In addition, he was also the Clinical Director of NHS Addiction Services in Bedfordshire and Northamptonshire, as well as the Clinical Lead for the Crime Reduction Initiative (CRI).

Key Takeaways; Cannabis Sector

• Glass House to acquires new California cannabis dispensaries for $22.6 million.
• Trulieve first quarter revenue increased 4% to $318.3 million; the company expects to sell over $1 billion of cannabis in 2022.

Key Takeaways; Psychedelic Sector

• Awakn’s Prof. David Nutt and Prof. Celia Morgan gave exceptional presentations at Psych Symposium: London 2022; The Nordic Psychedelic Science Conference is up next.
• MindMed announced at Psych Symposium: London 2022, that the phase 2 LSD trial for anxiety treatment was a success.

It was another busy week for psychedelic investors, who saw important data presented on flagship programs by the industry’s titans at The PSYCH Symposium in London. Furthermore, more cannabis companies reported their financial results. Below are the top cannabis and psychedelics companies that dominated the business headlines during the week.

Top Marijuana Companies for Week

#1: Glass House Brands

On May 12, 2022, Glass House Brands Inc. (OTC: GLASF) announced that it would purchase three retail assets, which include; two functioning retail dispensaries and another one planned to open in the third quarter of 2022. Moreover, Glass House also stated that with these acquisitions and other initiatives, it expects to generate more than $200 million in sales next year.

The retail dispensaries are currently being operate under the name Natural Healing Center (NHC), which is one of the pre-eminent retail dispensary chains in California and is located in the Central Coast area. Glass House is paying roughly $22.6 million for the two operating retail dispensaries in Lemoore and Morro Bay, with around $5.7 million in cash and the rest in Glass House equity shares.

According to Glass House, revenue from the two operating retail dispensaries was $15.3 million from April 2021 to March 2022, with EBITDA margins exceeding 20%.

Furthermore, Glass House said that the third retail dispensary, which is currently under construction and located in Turlock, California, is expected to open in Q3 2022. And based on the present performance of NHC’s operating dispensaries and the market fundamentals in Turlock, Glass House believes the Turlock store can eventually achieve steady annual revenues of around $10 million with an EBITDA margin of around 20%.

#2: Trulieve

Trulieve Cannabis Corp. (OTC: TCNNF) (CSE: TRUL) reported first-quarter results for the period ended March 31, 2022, with sales up 64% year over year to $318.3 million from $193.8 million and up 4% sequentially. This was higher than the $307 million average analyst prediction on Yahoo Finance. It was also a nice step up from the $305 million in revenue in the fourth quarter, especially at a time when many cannabis companies are struggling to beat the fourth quarter’s sales.

Trulieve also reported a net loss of $32 million, a 55% increase over the same period previous year, but a significant change from the $30 million in net income. The earnings per share were $0.17, compared to $0.24 the previous year. Additionally, earnings fell short of analyst expectations of $0.03 per share.

The company also reported a $1.7 million adjusted net income, which excludes $17.2 million in transaction, acquisition, integration, and other non-recurring charges primarily related to the Harvest acquisition, $13.8 million in asset impairments related to the closure of redundant cultivation facilities, and a $2.7 million loss due to the divestiture of a duplicative, non-operating location. However, operating expenses increased 138% to $149 million.

Trulieve also reiterated its guidance for 2022, with sales projected to be in the range of $1.3 billion to $1.4 billion and adjusted EBITDA in the range of $450 million to $500 million. According to the company’s current estimates, it expects to do better in the second half of 2022 than in the first half.

Top Psychedelic Companies for Week

#1: Awakn

On Wednesday, May 11, scientists, and policymakers convened in London for the Agenda of The PSYCH Symposium, which is a daylong event focused on the latest research and the future of Europe’s psychedelics industry. This was the biggest day of 2022 so far for psychedelic stock investors, as they got to hear from major players in the sector. Amongst them was Awakn’s Life Sciences Corp. (NEO: AWKN) (OTC: AWKNF) chief research officer, Prof. David Nutt, and Prof. Celia Morgan, Awakn’s head of ketamine assisted psychotherapy for addiction.

During a panel on the importance of industrial sustainability of psychedelics, Prof. David Nutt and Prof. Celia Morgan discussed various ways of ensuring the safety, efficacy, and patient accessibility of psychedelic medications. In addition, Prof. David Nutt received a standing ovation for his great presentation on the differences in brain affinity for LSD, psilocybin, and mescalin.

Following the success of The PSYCH Symposium in London, Awakn announced that The Nordic Psychedelic Science Conference will be the next event on the agenda. Moreover, the company announced that Prof. Celia Morgan and Dr. Ben Sessa, Awakn’s co-founder and chief medical officer, will both give presentations on the use of psychedelics to treat addiction at this conference. The Conference is scheduled to take place in Oslo, Norway on May 19-20, 2022.

Awakn is a biotechnology company that works in the United Kingdom and Europe to research, produce, and provide psychedelic medications to treat addiction and other mental health disorders. The company’s headquarters are in Vancouver, British Columbia, Canada.

#2: MindMed

On May 11, 2022, Mind Medicine (MindMed) Inc. (NASDAQ: MNMD) (NEO: MMED) finally gave the world a glimpse into its LSD-as-medicine project. Speaking at the highly anticipated PSYCH Symposium in London, Prof. Matthias Liechti and Dr. Friederike Holze, who are co-primary investigators of the trial and MindMed collaborators at University Hospital Basel (UHB), announced positive topline data from a Phase 2 placebo-controlled investigator-initiated clinical trial that evaluated LSD in the treatment of anxiety disorders. The presentation was titled “LSD as a Treatment for Anxiety Disorders: New Evidence of Efficacy.”

The preliminary findings showed that LSD has considerable, quick, long-lasting, and positive effects, as well as the ability to safely reduce anxiety and depression symptoms. The reduction in anxiety levels 16 weeks following LSD injection was the study’s primary goal. In 16 weeks after medication, 65% of patients had their anxiety levels decline by at least 30% compared to before treatment. Furthermore, secondary variables measuring depression, anxiety, and other significant mental symptoms showed similar quick and persistent responses, indicating a long-term therapy benefit.

Additionally, LSD was well-tolerated and there were no recorded instances of treatment-emergent suicidal ideation with intent, suicidal behavior, or intentional self-injury.

MindMed supports the UHB Liechti Lab in conducting investigator-initiated trials for LSD and other novel therapies and has exclusive access and rights to the data generated by these studies.

Key Takeaways; Cannabis Sector

• Riv Capital acquired New York-based Etain for $247 million.
• Verano delivered solid fourth quarter results as revenue increased to $211 million.
• Canadian cannabis producer HEXO appointed new CEO and CFO.

Key Takeaways; Psychedelic Sector

• Awakn announced results for the fourth quarter and fiscal year ending January 31, 2022.

The cannabis sector has continued to evolve through several ups and downs over the past few months. With the Fed hiking interest rates and the ongoing geopolitical economic worries, the global economy is in a state of flux. Below is a roundup of the top cannabis and psychedelics companies that dominated the business headlines during the last week of April.

Top Marijuana Companies for Week

#1: RIV Capital

On March 30, 2022, RIV Capital, Inc. (CSE: RIV) (OTC: CNPOF) announced a definitive agreement to acquire Etain LLC and Etain IP LLC for $247 million. Etain is the only woman-owned and operated cannabis business in New York, and one of the state’s original five medical cannabis license holders. After receiving regulatory clearances from the New York Cannabis Control Board and the New York State Office of Cannabis Management, RIV Capital will acquire full ownership and control of the Etain companies. A restriction that a minority-owned cannabis company could only sell to another minority-owned cannabis company existed in New York at one point, although it is unclear whether this will be enforced.

RIV Capital is being funded by The Scotts Miracle-Gro Company (NYSE: SMG), which essentially means that it’s Scotts buying the cannabis company. According to the agreement, RIV will make a cash payment of $212 million and a stock payment of $35 million.

In the state of New York, Etain is one of only 10 approved vertically integrated cannabis operators. It was also the only operator in New York with a female CEO, but that has also come to an end. This is because, RIV Capital has recruited Mark Sims as President and CEO to oversee the company’s formal entry into the US market and expansion into licensed adult-use operations in New York.

Mr. Sims is a current director of RIV Capital, a role he will retain. In addition, he was the Senior Vice President of Strategy and M&A for The Scotts Miracle-Gro, where he also previously served as its CIO and head of the business transformation. He replaces Narbé Alexandrian, who departed RIV Capital to pursue other opportunities.

RIV Capital said it will invest more money and resources into four new dispensaries, as well as assist the construction of a new state-of-the-art flagship indoor cultivation facility suited to the high-end New York market.

#2: Verano

Verano Holdings Corp. (OTC: VRNOF) reported fourth-quarter revenue of $211 million and a net income of $27 million, or 19% of revenue, for fiscal year 2021. This was also Verano’s first quarter using GAAP accounting standards and being audited by the PCAOB in the United States.

In comparison to 2020, revenue for the whole year of 2021 increased by 223% to $738 million. Moreover, the company stated that revenue grew by 233% to $760 million on a pro forma basis, compared to 2020. The company also said that depreciation and amortization of acquisitions, as well as expansion capex, contributed to the $15 million net loss for the year, compared to $38 million in 2020.

Verano presently has active operations in 13 states, with 96 dispensaries and 13 cultivation and processing facilities with a total cultivation capacity of over one million square feet. Additionally, after closing the proposed transaction, the company has also agreed to buy Goodness Growth Holdings, Inc. (OTC: GDNSF) in order to build a strong foundation in the lucrative markets of New York, Minnesota, and New Mexico.

In addition, Verano also reported that the company’s current assets were $274 million as of December 31, 2021, comprising $99 million in cash and cash equivalents. The company also had a working capital of $196 million and a total debt of $290 million, excluding lease liabilities and issuance charges.

#3: HEXO

HEXO Corp. (NASDAQ: HEXO), a major Canadian cannabis company, named its third CEO in less than a year, as well as its sixth chief financial officer since 2019. Hexo announced on Friday, April 29, 2022, that Charlie Bowman will serve as acting president and CEO until he receives a security clearance from Health Canada. Bowman previously served as Hexo’s acting chief operating officer and Hexo USA’s general manager. He succeeds former CEO Scott Cooper, who took over as CEO of Hexo in October 2021 after Hexo founder and CEO Sébastien St. Louis was ousted.

The company said in a news release that Bowman is well positioned to guide Hexo towards having a positive cash flow. In a statement, Bowman highlighted Hexo’s goal for creating positive cash flow by gaining market share for their leading brands across Canada’s recreational sector, while also expanding their global enterprise and developing new medicinal cannabis products.

In addition, the company also stated that acting Hexo CFO Curtis Solsvig is also leaving the company and will be replaced on an interim basis by Julius Ivancsits once his security clearance is granted. Ivancsits was previously the CFO of Goba Capital in Miami.

Top Psychedelic Company for Week

#1: Awakn

On Thursday, April 28, 2022, Awakn Life Sciences Corp. (NEO: AWKN) (OTC: AWKNF), a biotechnology company that researches, develops, and delivers combined therapeutics to treat addiction, released its financial results and business highlights for the three and twelve months ended January 31, 2022.

Awakn reported $236,037 in 12-month revenue from its clinics for the fiscal year ended January 31, 2022, compared to nil returns in the previous year. Moreover, revenue was $204,300 in the fourth quarter, 2021, compared to $31,737 in the fourth quarter, 2020, which was a 544% increase quarter over quarter. According to the company, the provision of Ketamine aided therapy at the Oslo clinic in Norway and the Bristol clinic in the United Kingdom generated the majority of revenue during the 12-month period.

In addition, the company stated that it had roughly $1.6 million in cash as of January 31, 2022. Furthermore, the company reported that following the conclusion of the year, they completed a $3.25 million private placement.

Following the announcement of the financial results, Anthony Tennyson, Awakn Life Sciences’ Chief Executive Officer, noted that the Company’s fiscal year 2021 was a foundational year. Where they built their business model around researching, producing, and providing integrated medicines to treat addiction, with a near-term focus on Alcohol Use Disorder (AUD), which affects 400 million people worldwide. He also mentioned that this business model allows them to create novel and potentially more effective combined medicines for treating addiction, as well as collect real-world data to support interactions with regulatory bodies before commercializing their combined therapeutics at a big scale.

Key Takeaways; Cannabis Sector

• Institutional mortgage REIT AFC Gamma committed $82.5 million for Florida marijuana MSO Bloom Medicinals.
• Decibel announced Q4 results with strong revenue growth and sixth period of consecutive positive adjusted EBITDA.
• Red White & Bloom took steps to enhance its financial position.

Key Takeaways; Psychedelic Sector

• Mindset Pharma strengthened its portfolio by filing a new provisional patent application for its Next-Generation DMT and 5-MeO-DMT drug candidate compounds.
• Awakn provided shareholders with a business update on its 3 ketamine-assisted therapy clinics.

Top Marijuana Companies for Week

#1: AFC Gamma

Cannabis real estate lender AFC Gamma, Inc. (NASDAQ: AFCG) announced a senior secured credit facility worth up to $82.5 million for Florida-based multistate marijuana company Bloom Medicinals, which is a family-owned company with three cultivation facilities, two processing facilities, and 12 dispensaries. AFC Gamma stated that the facility is secured by first-lien mortgages on Bloom’s real estate properties and other commercial security interests.

According to a news release issued by AFC Gamma on Thursday April 21, 2022, Bloom aims to use the funds from the new credit facility to settle existing debt, finance development activities, acquire a Level 1 Cultivation license in Ohio, and provide extra operating capital.

AFC Gamma also said that, Bloom’s five Ohio medical marijuana dispensaries would benefit from the cultivation facility and the acquisition would make Bloom’s Ohio operations vertically integrated.

AFC Gamma, which is situated in West Palm Beach, Florida, recently announced that it was refinancing two outstanding debts with Bloom, which is based in Boca Raton, a city on Florida’s southeastern coast. In addition, AFC Gamma recently announced $46.4 million in loans to other cannabis companies.

The lender reported $419.2 million of loan commitments as of the end of 2021. The company’s shares trade on the NASDAQ exchange as AFCG.

#2: Decibel

On April 22, 2022, Decibel Cannabis Company Inc. (TSXV: DB) (OTC: DBCCF) released its audited financial results for the fourth quarter and year ended December 31, 2021. Decibel’s net revenue increased 5% sequentially to $14 million in the fourth quarter, which was a 23% rise compared to the same period in 2020. Moreover, the Calgary, Alberta-based company recorded its third straight growth in quarterly net sales in 2021, with annual sales of CA$52.5 million.

In addition to the growing cannabis sales, the company also reported a net profit of 1.7 million Canadian dollars ($1.3 million) for the fiscal year 2021 and a positive adjusted EBITDA of CA$7.4 million.

Despite Decibel having positive financial results, competitors suffered significant declines in cannabis sales over the same period of time. Unlike its larger and better-funded rivals Tilray Brands, Hexo Corp., and Canopy Growth Corp., Decibel stated on Friday that it has increased its market share in the past six months, rising from around 4% last summer to around 5% in March 2022, which is also better than Cronos and Aurora Cannabis.

According to Decibel, the launch of Decibel’s new infused pre-roll lines, as well as continuous growth in demand for flower, vape, and concentrate products, contributed to the 5% increase in revenues over the previous quarter. However, price compression in the floral market and slower retail sales due to greater competition had a negative impact.

In the first-quarter 2022 business outlook, Decibel forecasts net revenue to reach between $16.5 and $17.5 million in the first quarter of 2022, up from $12.6 million in the first quarter of 2021. Additionally, the company expects to end the quarter with a record 4.0% recreational national market share.

#3: Red White & Bloom

Red White & Bloom Brands Inc. (CSE: RWB) (OTC: RWBYF) announced on April 20, 2022, that it had completed a number of restructuring and operational decisions that are intended at strengthening the balance sheet and reducing costs significantly in 2022. The measures taken include, selling the Illinois property, paying off $51.7 million in debt, decreasing manpower, and focusing on its own brands.

According to the Toronto-based company, these moves strengthen its balance sheet by removing $115 million in liabilities and over $22 million in yearly expenses. As a result, Red White & Bloom expects to have a positive EBITDA before the end of the year.

One of the moves by the company include, selling its Granville, Illinois, cultivation facility for $56.1 million to New Branches of California. Moreover, the company plans on paying off $51.7 million of secured debt, a move that will eliminates $6.3 million of annual interest. The company also announced that it was aiming to save more than $2.5 million through reductions in workforce, suppliers and consultants; however, the exact employee head-count reductions weren’t announced. In addition, the company also stated that it was working on eliminating $60 million in future royalty payments by streamlining brands.

Red White & Bloom still has operations in Illinois as well as Arizona, California, Florida, Michigan and Oklahoma. In addition, the company recently completed the acquisition of a marijuana company in Michigan.

Top Psychedelic Company for Week

#1: Mindset Pharma

On April 19, 2022, Mindset Pharma Inc. (CNSX: MSET) (OTC: MSSTF), a drug discovery and development company focused on developing optimized and patentable next-generation psychedelic medicines to treat neurological and psychiatric disorders with unmet medical needs, filed a new provisional patent application that covers new chemical entities (NCEs), which expands the Company’s next-generation DMT and 5-MeO-DMT platform that is currently in the development stage.

This latest patent application demonstrates Mindset’s corporate objective to expand the therapeutic psychedelic toolkit for patients with mental health disorders who are waiting for transformative drugs.

Mindset has a large IP footprint in the psychedelic sector, with novel chemical entities in development that mirror the functioning of first-generation psychedelic drugs while also having enhanced pharmacological and safety profiles to suit a variety of in-clinic needs.

On its patent-pending new compounds, the company performs a differentiated battery of highly specialized in-vitro and in-vivo testing to choose the best psychedelic medication candidates for human clinical trials.

#2: Awakn

Awakn Life Sciences Corp. (NEO: AWKN) (OTC: AWKNF), a biotechnology company dedicated to researching, developing, and delivering revolutionary therapeutics to treat addiction, provided shareholders with an update on its three fully operational ketamine-assisted therapy clinics, two in the United Kingdom and one in Norway. Below is a breakdown report on the three clinics.

Awakn Clinics Bristol was Awakn’s and the UK’s first medical psychedelic-assisted therapy clinic. The clinic began in the fourth quarter of 2021 and is currently in its sixth month of operation, with high demand for both its evidence-based ‘KARE’ protocol for the treatment of AUD and its ketamine-assisted therapy for the treatment of depression, anxiety, PTSD, and eating disorders.

Awakn Clinics Oslo (previously Axonklinikken) was bought by Awakn in late 2021 and is one of the premier ketamine-assisted therapy clinics in the Nordics. Awakn completed the integration of Axonklinikken into its clinic network in the first quarter of 2022, and the clinic was officially rebranded as Awakn Clinics Oslo in March 2022. Clients from all over Norway can now receive Awakn’s evidence-based ‘KARE’ and ketamine-assisted therapy at Awakn Clinics Oslo.

After getting regulatory approval to begin operations in March 2022, Awakn Clinics London, which is Awakn’s flagship facility, was officially opened and is now, treating clients. It, like the other of Awakn’s clinics, provides evidence-based therapies for a variety of mental diseases and addictions.

Dr. Ben Sessa, Awakn’s Chief Medical Officer, said; “To have three clinics operational and delivering ketamine-assisted therapy in such a short space of time is hugely gratifying.” He also said that the clinics provide a fantastic potential for Awakn’s growth, and he believes this is due to the fact that Awakn serve a broad group of people who have struggled to find an effective therapy for their sickness.

Key Takeaways; Cannabis Sector

• Jushi expands Nevada presence by closing on $53.6M acquisition of NuLeaf.
• American Green is developing its own cryptocurrency.
• Cannabis real estate investor, NewLake, acquired cultivation property in Missouri for $34.0 million.
• InterCure reported record breaking $89 million revenue for 2021.

Key Takeaways; Psychedelic Sector

• Awakn successfully completed phase one of its drug discovery program.

Although the legal cannabis sector has grown swiftly, it is still in its early phases. Nevertheless, the combination of federal legalization delays and unpredictable capital markets disruptors have created a difficult environment that is always changing. Despite these challenges, operators on the other hand, are finding new methods to compete, grow, and advance the sector. Below is a full weekly roundup on the top movers and shakers of the cannabis and psychedelics sectors.

Top Marijuana Companies for Week

#1: Jushi

On April 07, 2022, Jushi Holdings Inc. (OTC: JUSHF), which is a Florida-based marijuana multistate operator, bolstered its operations in Nevada by the completion of its $53.6 million acquisition of Nevada-based NuLeaf, Inc.

In the Las Vegas area, NuLeaf has two high-performing adult use and medicinal retail dispensaries, as well as one in Lake Tahoe. NuLeaf also owns a third licensed retail dispensary located directly on the Las Vegas Strip that is expected to open in the second quarter. In addition, the company operates a 27,000-square-foot growing plant in Sparks, Nevada, as well as a 13,000-square-foot processing facility in Reno, Nevada.

This is Jushi’s latest move to solidify its position in the $1 billion Nevada industry. Moreover, the NuLeaf acquisition comes on the heels of the recently completed Apothecarium Nevada acquisition. As a result of these acquisitions, Jushi now has four dispensaries in Nevada, three of which are in the Las Vegas area, which is a high tourist-friendly city. The company said that the NuLeaf acquisition will enable Jushi to sell its branded products on the wholesale market in Nevada.

Just a couple of weeks ago, Jushi reported that its total revenue rose 104% in the fourth quarter to $65.9 million over last year and increased 22% sequentially. However, some analysts believe that the company’s revenue was slowing as the year began. But there’s no doubt that the addition of NuLeaf will help bolster those revenue numbers.

#2: American Green

On April 7, 2022, American Green, Inc. (OTC: ERBB) president David G. Gwyther said that the company is working on developing its own cryptocurrency dubbed The American GreenBack.

American Green recently completed the second cash payment under the terms of a binding letter of intent (LOI) to acquire VendWeb. The company wants to develop a new crypto coin that will be used in age-verified transactions for alcohol sales at sporting events, concerts, and nightclubs, as well as other age-restricted locations like cannabis dispensaries and smoke shops.

The company said that, The American GreenBack crypto, as designed, would combine biometric data (ID, fingerprint, retinal scan, palm print, etc.) with Know Your Customer (KYC) and Anti-Money Laundering (AML) compliant verification software, all of which would be stored on a single, unalterable blockchain. The company added that only other KYC/AML-verified counterparties will be able to exchange the crypto.

In 2009, American Green, Inc. became the country’s second publicly traded cannabis company. With over 77,000 verified beneficial owners, the company is currently one of the largest cannabis companies in terms of shareholder count. The objective of the company is to be the leader in the cannabis and premium CBD industries. The management hopes that the use of American GreenBack crypto as their proprietary vending solutions will help them achieve that goal.

#3: NewLake

Connecticut-based NewLake Capital Partners, Inc. (OTC: NLCP) plans to invest as much as $34 million in a marijuana cultivation operation in Missouri. On Wednesday, April 06, 2022, the company announced the completion of part one of a three-part commitment for a cultivation property in Missouri. Part of the commitment include, the purchase of a 40,000-square-foot industrial property in O’Fallon, Missouri, and the signing of a long-term, triple-net lease with an affiliate of C3 Industries, Inc, which is guaranteeing the lease.

The $34.0 million aggregate commitment from NewLake will be split into three parts. Part one begins with NewLake’s $7.3 million purchase of the company’s flagship Missouri cultivation facility, along with a pledge to pay an additional $5.2 million to finish construction by June 2022.

Part two helps to fund a proposed expansion of the facility by providing up to $16.5 million to buy an adjacent piece of property and build a 65,000 square foot cultivation facility (subject to normal and customary closing conditions and regulatory approvals). The combined property will be a state-of-the-art 105,000 square foot growing facility once completed. Finally, part three is a $5.0 million interest-only loan that can be accessed over the next year.

NewLake CEO David Weinstein said in the press release that the company is making the investment because it has been impressed by C3 Industries’ success in limited-license states such as Michigan and Oregon.

NewLake, which went public, last year, trades on the U.S. over-the-counter (OTC) markets as NLCP.

#4: InterCure

Israeli-based cannabis company InterCure Ltd. (NASDAQ: INCR), also known as Canndoc, reported its financial and operating results for the fourth quarter and year ending December 31, 2021 on April 06, 2022.

InterCure announced revenue of $33 million (NIS 80 million), which was higher than preliminary figures and three times that of the fourth quarter of 2020, indicating a 29% sequential growth. In addition, the expected net income was $1 million (NIS 3 million) for the quarter.

InterCure also reported revenue and adjusted EBITDA for fiscal year 2021 of $89 million (NIS 220 million) and $23 million (NIS 55 million), respectively, indicating increases of 230% and 250% year over year. Also for 2021, the expected net income was $5 million (NIS 13 million). In addition, the company said it had $89 million (NIS 217 million) in cash at the end of the year.

InterCure also said it received 5.2 million shares back from the sponsor of its SPAC transaction in the third quarter. The shares were susceptible to forfeiture from the SPAC sponsor depending on share price target conditions, according to the agreement. Nonetheless, the free return of the shares to the company provided a considerable value of about $56 million to all InterCure shareholders based on the current share price.

Since the quarter ended, InterCure has struck a definitive agreement with Altman Health, which is the leading Israeli wellness brand with over 1,700 points of sale that focus on the new Israeli CBD product market. In addition, the company added three new medical cannabis devoted pharmacies to its chain, bringing the total number of retail locations in Israel to 23, with 15 of them currently dispensing medical cannabis.

Top Psychedelic Company for Week

#1: Awakn

On April 6, 2022, Awakn Life Sciences Corp. (NEO: AWKN) (OTC: AWKNF), a biotechnology company focused on researching, developing, and delivering revolutionary therapeutics to treat addiction, announced the successful completion of phase one of its new chemical entity (NCE) development program. This key development bolsters Awakn’s pipeline for the treatment of a wide range of both substance and behavioral addictions.

Awakn announced that it had completed a hit to lead program that met its primary objectives of finding and patenting novel chemistry scaffolds. In addition, the company said that it had also established drug discovery assays that have the potential to make lead optimization more efficient.

This historic discovery by Awakn is an important first step toward the development of new, faster-acting, and safer entactogenic medications for the market.

During this NCE development program, several chemical scaffolds were identified using a combination of computational screening and medicinal chemistry techniques, as well as in vitro pharmacology and DMPK testing. And as a result of this successful research, several patents have now been filed with several of these chemical scaffolds, demonstrating in vivo activity and offering a great starting point for lead optimization.

This announcement builds on Awakn’s acquisition in March 2021 of a significant body of proprietary research from Prof. Nutt’s Equasy Enterprises, which included details of newly discovered actions of MDMA and gave Awakn an advantageous starting point for this phase of development.

Key Takeaways; Psychedelic Sector

• Stifel analyst issued a speculative buy on Awakn with $8 price target.

Key Takeaways; Cannabis Sector

• RIV Capital bought New York cannabis company Etain for $257 million.
• Trulieve reported record Q4 and full year earnings results; revenue increased 36% sequentially to $305 million after acquisition of Harvest.
• IM Cannabis reported record fourth quarter and fiscal year, 2021, financial results; the company also provided first quarter, 2022, outlook.
• Cannabis manufacturer, Valens, raised $22.5 million in bought deal offerings.

Marijuana stocks have taken a beating in the past year, getting pummeled as hopes evaporated for federal marijuana legalization before inflation worries and the war in Ukraine tanked the broader market. However, the tide seems to be turning. This is because, The Marijuana Opportunity, Reinvestment and Expungement, ‘The MORE Act’, which was initiated by the House Judiciary Chairman, Jerrold Nadler, was passed through a House vote on Friday, April 1, 2022. There’s high hope that the passing of this bill will bring huge optimism in the cannabis sector, and even push us further to the federal legalization of marijuana.

Moreover, there was also another key development in the psychedelics sector, where Stifel Financial Corp., which is an American multinational independent investment bank and financial services provider company, initiated a speculative buy rating coverage on Awakn Life Sciences, with a target price of C$8.00.

Below is the full weekly roundup on the top business stories that dominated the psychedelics sector and the cannabis industry.

Top Psychedelic Company for Week

#1: Awakn

Awakn Life Sciences Corp. (NEO: AWKN) (OTC: AWKNF) made the news headlines this week after a well-known analyst upgraded the buy ratings on the company’s shares. Awakn is expected to have an optimistic future, according to Stifel Financial Corp. analyst, Andrew Partheniou. The stock market analyst issued a Speculative Buy rating on the psychedelics stock, with a price target of $8 for the stock.

For various reasons, Partheniou believes Awakn is one of the top psychedelics stocks to invest in. The company’s prospects were underlined in his Initiation of Coverage analyst report, which described it as a “pure play” psychedelic company that is succeeding in creating addiction treatments. He also highlighted Awakn’s elite management team that includes Professor David Nutt. He believes that the elite management is giving Awakn an edge against its competitors. Partheniou has set an $8 price target for Awakn. The stock is currently trading at $1.26.

The psychedelics industry is slowly but steadily approaching a mainstream global legalization and adoption. In a few years, self-medicating using psychedelics like those developed by Awakn may be routine for persons suffering from post-traumatic stress disorder, depression, alcohol addiction, and anxiety.

Awakn, which was founded in Canada in 2020, is a biotechnology company focused on researching, developing, and delivering psychedelic therapeutics to treat behavioral addictions. Shares of Awakn trade as AWKN on the Canadian stock exchange NEO and also trade as AWKNF in the over the counter (OTC) markets in the USA. The company is currently based in Toronto, Canada.

Top Marijuana Companies for Week

#1: RIV Capital

On March 30, 2022, RIV Capital, Inc. (CSE: RIV) (OTC: CNPOF) announced a definitive agreement to purchase Etain LLC and Etain IP LLC, which are owners and operators of legally registered cannabis production and retail outlets in New York, the deal is worth $247 million.  Etain was the only woman-owned and operated cannabis company in New York. In addition, it was one of the state’s first five medical cannabis license holders.

According to the terms of the definitive agreement, after receiving regulatory clearances from the New York Cannabis Control Board and the New York State Office of Cannabis Management, RIV Capital will acquire full ownership and control of all Etain companies. The deal is subject to these approvals because a restriction that a minority-owned cannabis company could only sell to another minority-owned cannabis company existed in New York at one point; however, it is unclear whether this restriction will be enforced.

Scotts Miracle-Gro (NYSE: SMG) is funding RIV Capital in this acquisition deal. This means that Scotts is essentially the company buying Etain. As per the terms of agreements, RIV Capital will make a cash payment of $212 million and an additional stock payment of $35 million.

RIV Capital said it will put more money and resources into four new dispensaries, as well as assist the creation of a new state-of-the-art flagship indoor cultivation facility suited to the high-end New York market.

#2: Trulieve

Trulieve Cannabis Corp. (OTC: TCNNF), a leading and top-performing multi-state cannabis company in the United States, released its quarterly and full-year results on March 30, 2022.

Trulieve reported revenue of $305.3 million in the fourth quarter, which was up 81% from the fourth quarter of 2020 and a 36% increase from the third quarter. In addition, the company reported a net loss of $71.5 million and an adjusted net income of $1.8 million for the quarter, which excluded $73.3 million in non-recurring fair value of inventory step-up, transaction, acquisition, and integration losses that are principally related to the Harvest acquisition. The loss per share was $0.49, which missed the average analyst forecast of $0.18 cents per share on Yahoo Finance.

Trulieve announced that revenue for the full year of 2021 increased by 80% year over year to $938.4 million. The company also reported $18 million in net income and $123.4 million in adjusted net income, excluding $105.4 million in non-recurring compensation, the fair value of inventory step-up, and transaction, acquisition, and integration charges primarily related to the Harvest Health & Recreation Inc. (“Harvest”) acquisition.

In addition, the company said that it had rebranded and reopened fourteen legacy Harvest dispensaries in Florida in the month of October, following the Harvest acquisition.

#3: IM Cannabis

On March 31, 2022, IM Cannabis Corp. (NASDAQ: IMCC), a leading medicinal and adult-use recreational cannabis company with operations in Israel, Canada, and Germany, released its financial results for the quarter and fiscal year ended December 31, 2021.

Revenues in the fourth quarter were $20.0 million, up 309% from the fourth quarter of 2020 and up 35% sequentially. The fourth-quarter net loss was $12.5 million, compared to a net loss of $20.0 million in 2020. Additionally, the basic and diluted loss per share was $0.19 which was up compared to $0.13 in the fourth quarter of 2020.

Moreover, revenues in 2021 were $54.3 million, up 242% from the previous year. Furthermore, total dried flower sold for the year ended December 31, 2021 was 8,410kg at an average selling price of $4.90 per gram, compared to 2,586kg for the same period in 2020 at an average selling price of $5.75 per gram. Also, in 2021, the net loss was $18.5 million, which reduced significantly compared to $28.7 million net loss in 2020. In addition, the basic and diluted loss per share in 2021 was $0.31 and $0.66, respectively, compared to $0.74 for basic and diluted loss per share in 2020.

Additionally, the company said that cash and cash equivalents were $13.9 million on December 31, 2021, which was a huge increase compared to $8.9 million on December 31, 2020.

Looking forward IMC Cannabis forecasts sales and gross margin to rise sequentially in the first quarter of 2022. And the company said that they expect to reveal their first quarter financial results on or around May 16, 2022.

#4: The Valens Company

The Valens Company Inc. (NASDAQ: VLNS), a Canadian cannabis product maker, launched a $22.5 million (28.1 million Canadian dollar) purchase deal offering with an over-allotment option.

According to Valens, which is based in British Columbia, the net proceeds from the offering deal will be used to continue to pursue strategic expansion plans in North America, and also provide funding for working capital, and for general business reasons.

Under the bought deal offering, underwriters Stifel GMP and Alliance Global Partners will purchase 10,613,207 Valens units for CA$2.65 ($2.13) each. Each unit consists of one common share and half of a common share purchase warrant, which can be used to purchase another common share for CA$3.20 within 48 months of the closing price.

In addition, an over-allotment option will allow the underwriters to purchase an additional 15% of the units sold for 30 days after closing. The offering is expected to close in early April 2022, subject to approvals.

Moreover, Valens plans to list the new common shares and warrant shares (VLNS) on both the Toronto Stock Exchange and the NASDAQ exchange, where it has been listed since late 2021.

Key Takeaways; Cannabis Sector

• Agrify secured $135 million debt facility.
• TerrAscend reported full year 2021 net sales of $210.4 million; an increase of 42% YOY.
• Ayr Wellness reported solid Q4 and full year 2021 results.
• Canadian cannabis firm High Tide reported $72 million in revenue for first quarter.
• Glass House Brands reported a 44% increase in Q4; the company expects positive cash flow this year.

Key Takeaways; Psychedelic Sector

• Awakn received regulatory approval for flagship clinic in London to begin delivering treatments; the company also appointed Kevin Lorenz as U.S. head of commercial development.

Since the World Health Organization declared the COVID-19 outbreak a global pandemic in March 2020, it’s been a roller coaster ride for many cannabis companies. Despite the setbacks, majority of the companies in the sector have shown strong resilience and they continue to thrive as major states continue to legalize adult-use and sale of cannabis. Below is a weekly roundup of the top business stories from the cannabis and psychedelics sectors. It was another busy week in the sector as more companies reported their quarter earnings results.

Top Marijuana Companies for Week

#1: Agrify

Agrify Corporation (NASDAQ: AGFY), a cannabis ancillary company, signed a definitive agreement to fund up to $135 million in debt financing to bolster its balance sheet and support sustained expansion. According to a news release that was issued on Monday, March 14, 2022, the Massachusetts-based developer of indoor agriculture technologies, said that under the senior secured debt facility, $65 million will be available at closure. And depending on certain conditions, the remaining $70 million can be accessed in $35 million increments.

The note, which has a favorable annual interest rate of 6.75 percent, will mature in March 2026. Additionally, it also includes stock warrants that will be issued to the lender. The warrants can be exercised at $6.75 each, which is equivalent to 110% of Agrify’s stock closing price on the day before the definitive agreement. In addition, the warrants, which have a term of 5.5 years, are potentially exercisable for a number of shares equal to 65% of the funding amount, divided by the closing stock price on the trading day before the definitive agreement.

The agreement also requires that Agrify should pay the interest on the loan in cash and on a quarterly basis for the first year. Moreover, under the agreement terms, Agrify should make payments equal to 4% of the original principal on a monthly basis starting in February 2023. It was also reported that Alliance Global Partners will be the placement agent for the financing.

Agrify produces hardware and software for use in cannabis cultivation and other crops. The company went public in January 2021 and has raised additional capital and made acquisitions since. Agrify shares trade as AGFY on the NASDAQ exchange.

#2: TerrAscend

On March 16, 2022, TerrAscend Corp. (OTC: TRSSF) (CSE: TER) released its financial results for the fourth quarter and full year ended December 31, 2021. In the fourth quarter, net sales were $49.2 million, up from $49.1 million in the third quarter and $49.6 million in the same period the previous year.

The net loss was $5.9 million, compared to $94 million the previous year. TerrAscend attributed the loss to a $3.3 million one-time loss in lease termination fees, $6.9 million in finance and other expenses, $6.9 million in accumulated income taxes, and $2.0 million in transaction costs, all of which were predominantly linked to the Gage Growth Corp. acquisition. These costs were partially offset by a non-cash gain of $14.4 million on the fair value of warrant liabilities.

Net sales for the entire year 2021 were $210.4 million, up 42 percent from the previous year. As a result, the company made a $6.1 million profit. The 42 percent increase in net sales was attributed to the company’s first full year in the New Jersey medical cannabis market and retail expansion in Pennsylvania. In addition, the net sales also reflected the profits from the acquisition of KCR in May 2021, as well as a full year of operations at the three existing Apothecarium shops. Total revenue was further boosted by the late 2020 expansion of State Flower production in California and the acquisition of HMS Health in Maryland in May of 2021.

Cash and cash equivalents totaled $79.6 million as of December 31, 2021, compared to $102.6 million as of September 30, 2021 and $59.2 million as of December 31, 2020, indicating that the company has enough cash and cash equivalents to fund planned organic and inorganic expansion plans.

During the quarter, the Company completed the partial acquisition of its New Jersey partnership for $25 million, increasing its ownership to 87.5 percent from 75 percent.

TerrAscend is a prominent North American cannabis company with vertically integrated operations in Pennsylvania, New Jersey, Michigan, and California, as well as licensed cultivation, processing, and production in Maryland and Canada. The company’s key markets are retail dispensaries The Apothecarium and Gage, as well as scaled cultivation, processing, and manufacturing facilities.

#3: Ayr Wellness

On Thursday, March 17, Ayr Wellness Inc. (OTC: AYRWF) reported a 133 percent increase in fourth-quarter revenue to $111.8 million from $47.8 million the previous year. It was a 16 percent rise from the $96.2 million in revenue in the third quarter. The company also said that it earned $23 million in net income for the quarter and $0.35 in earnings per share. This was also an improvement from the $3.3 million net deficit in the third quarter.

In addition, the revenue for the fiscal year 2021 was $357.6 million, up from $155.1 million the previous year. The year’s net deficit was reduced to $17 million, down from $24.6 million in 2020. Irrespective of these solid Q4 results, the company predicts that the first half of the year will be flat, but that the second half will pick up.

Given previous construction delays and uncertain regulatory timelines for key revenue-generating initiatives, such as regulatory approval for adult-use sales and cultivation expansions in both Massachusetts and New Jersey, Ayr Wellness expects financial results to remain relatively flat in the first half of 2022, in line with industry trends, followed by a step-function in growth beginning in Q3 2022 and continuing through Q4 2022.

Ayr Wellness reported that if everything goes according to plan and the company receives approvals in the third quarter, the fourth quarter of 2022 may see an annualized run-rate of $250 million in Adjusted EBITDA, $100 million in operating income, and $800 million in revenue. On an annually basis, the company expects $250 million in Adjusted EBITDA, $800 million in Revenue, and $100 million in US GAAP Operating Income, based on the run rate forecast in the fourth quarter of 2022.

#4: High Tide

After the stock market closed on Thursday, March 17, 2022, High Tide Inc. (NASDAQ: HITI) (TSXV: HITI), a Canadian cannabis company, released its financial results for the first fiscal quarter of 2022, which ended January 31, 2022. In the first quarter of 2022, revenue grew to $72.2 million, up from $38.3 million the previous year. In comparison to the fourth quarter of 2021, revenue increased by 34% sequentially. A net loss of $7.3 million was also reported by the company. All figures are in Canadian dollars.

Geographically, $52.4 million in revenue was earned in Canada in the first quarter of 2022, $17.4 million in the United States, and $2.3 million internationally. Revenue increased by 53% in Canada, 346% in the United States, and 1,016% globally compared to the first quarter of 2021. In comparison to the fourth quarter of 2021, income earned grew by 22 percent in Canada, 65 percent in the United States, and 455 percent globally.

“This past quarter’s results, showcasing 34% sequential revenue growth and 80% sequential increase in Adjusted EBITDA, re-affirm our exponential, yet sustained growth trajectory. We continue to execute on our business plan quarter after quarter by strategically expanding our business in Canada and internationally through organic growth and accretive M&A across our diversified ecosystem. Our forward-thinking approach makes us a leader amongst our peer group in Canada, as we keep introducing innovative retail concepts such as our discount club model, while remaining agile and pivoting quickly when needed due to the constantly evolving dynamics in the global cannabis landscape,” said Raj Grover, President and Chief Executive Officer of High Tide.

High Tide reported that it aims to expand revenue through organic growth and accretive M&A throughout the second fiscal quarter of 2022, as well as the rest of the year. The company plans to expand its Canadian retail store portfolio to at least 150 locations by the end of the calendar year 2022, with a major concentration on the province of Ontario. The company also stated that it intends to enter the British Columbia market in the near future and that it will continue to grow strategically in the provinces where it now operates. Despite the fact that hurdles exist as a result of the ongoing COVID-19 epidemic, the Company is optimistic in its ability to maintain a strong growth trajectory.

#5: Glass House Brands

Glass House Brands Inc. (OTC: GLASF) announced on March 17, 2022 that revenue for the fourth quarter ended in December increased by 7% sequentially to $18.4 million. This was a 44 percent increase compared to the same period the previous year.

Wholesale biomass sales, which climbed 31% over Q3 2021, were credited with driving the sequential revenue improvement, according to Glass House. In addition, the adjusted EBITDA loss was $9.1 million, up from $5.4 million in the previous quarter. Lower wholesale price and inventory reserves in the quarter severely impacted gross margin, resulting in a $3.8 million decline sequentially.

As for the full year results, Glass House said that in 2021, the company had a 44 percent rise in revenue to $69.4 million, an increase of $21.2 million. The growth was due to an increase in the company’s CPG and retail activities. Because of the high rise in Glass House Farms branded sales, Glass House’s CPG business surged by 93%.

Glass House also said that the full-year impact of the company’s Berkeley store, which opened in January 2021, generated $6.8 million in revenue during the year. Subsequently, this boosted retail sales by 50%. In addition, during 2021, adjusted EBITDA was a loss of $11.8 million, up from a loss of $0.3 million in 2020. The rise was due to a combination of decreased gross profit and greater non-excludable operational expenses.

Finally, Glass House said that Looking ahead, they expects to be able to fully utilize the Phase 1 capacity of the SoCal Facility this year and next, assuming wholesale and CPG pricing stay steady. The company also said that production will be in line with existing production metrics. And according to Glass House, this will put the company on track to generate positive cash flow from operations by early 2023.

Top Psychedelic Companies for Week

#1: Awakn

On March 17, 2022, Awakn Life Sciences Corp. (NEO: AWKN) (OTC: AWKNF), a biotechnology company that is researching, developing, and delivering psychedelic therapeutics to treat addiction, announced that Awakn Clinics London has received formal approval from the Care Quality Commission (CQC) to begin addiction and mental health treatments.

The flagship London clinic is Awakn’s third, joining the company’s two other clinics in Bristol, UK, and Oslo, Norway (Norway). The facilities provide ketamine-assisted therapy for addiction and a variety of mental illnesses. Awakn’s breakthrough treatment protocol, established in their newly published Phase II a/b clinical trial, will be given to clients seeking therapy for Alcohol Use Disorder.

Anthony Tennyson, Awakn’s CEO, commented, “This is a very exciting moment for Awakn and for ketamine-assisted therapy overall as it starts to become a more accessible option for patients. Most importantly, it provides an effective treatment option for so many when other current therapies or treatments fall short. The CQC giving us this recognition again signals a positive direction for the UK and Europe toward embracing ketamine-assisted therapy as a mainstream treatment.”

Following the CQC approval, Awakn will apply to the Home Office for a schedule 2 license, allowing ketamine to be administered in the London clinic.

In addition to these great developments, the company announced on Tuesday, March 15, 2022 that it had appointed Kevin Lorenz as its U.S. Head of Commercial Development, with immediate effect. Mr. Lorenz will be in charge of Awakn’s therapeutics commercialization activities in the United States, beginning with the launch of its Licensing Partnership business in the second half of 2022, which is projected to generate revenue.

Mr. Lorenz joins Awakn with extensive commercial biotech experience, having worked in the pharmaceutical sales industry for over two decades, specializing in the addiction treatment market in the United States. He formerly worked at Alkermes as a Senior Regional Sales Director, where he oversaw a team of executives and representatives responsible for Vivitrol, an FDA-approved medicine for the treatment of Alcohol Use Disorder and Opiate Use Disorder, across 32 states. Mr. Lorenz was in charge of half of Alkermes’ Vivitrol sales in the United States, which totaled $170 million each year. In addition, Mr. Lorenz formerly worked at Cephalon Inc. and Janssen Pharmaceuticals, among other companies. He holds a degree from Lambuth University.

Key Takeaways; Cannabis Sector

• TerrAscend entered Michigan cannabis market with the completion of Gage Growth acquisition.
• Acreage Holdings reported Q4 2021 results; revenue increased 21% to $58.1 million.
• Scotts Miracle-Gro expects Hawthorne sales to decrease 15-25% in fiscal 2022.

Key Takeaways; Psychedelic Sector

• Awakn announced that the company will participate at upcoming March 2022 conferences.
• Numinus added Ayahuasca & San Pedro to Federal license for psychedelic research.

Over the last few years, the cannabis sector has gone through various ups and downs. Recently the sector has seen some optimism as news emerged that the opening of adult-use sales in New Jersey could happen as early as May. This will no doubt be one of the big catalysts for the sector in 2022. Below is a roundup of the top business stories from the cannabis and psychedelics industry for this week.

Top Marijuana Companies for Week

#1: TerrAscend

TerrAscend Corp. (OTC: TRSSF) (CSE: TER) is now the official owner of Gage Growth Corp., which is based in Michigan. On March 10, 2022, shares of Gage ceased trading following the completion of the previously announced deal with TerrAscend. After the closing of this deal, TerrAscend now owns and manages operations in California, Michigan, Maryland, New Jersey, Pennsylvania, and Canada, as well as 7 cultivation and processing facilities and 25 functioning shops serving the medicinal and adult-use cannabis markets in the United States and Canada.

As a result of the deal, TerrAscend made Gage a wholly-owned subsidiary. And in conjunction with the transaction, Gage shares were delisted from the CSE at the close of trading day on March 10, 2022. Additionally, Gage filed an application with the applicable securities regulators to cease to be a reporting issuer and terminate Gage’s public reporting responsibilities.

This acquisition is no doubt a defining moment for TerrAscend. This is because Gage had swiftly positioned itself as a market leader in Michigan, which grew to become the third largest cannabis market in the United States as of December 2021, with recorded cannabis sales of $168 million, reflecting a yearly market size of more than $2.0 billion. In addition, Gage has exclusive licensing agreements with Cookies, Blue River, Pure Beauty, Khalifa Kush, and others in Michigan.

The acquisition is expected to provide financial flexibility to TerrAscend, which is predicted to result in above-average long-term margins and cash flow for the company.

#2: Scotts Miracle-Gro

Shares of Scotts Miracle-Gro Company (NYSE: SMG) were down 6% on Tuesday, March 08, 2022, after news emerged that the company had cut its full-year sales estimates for its hydroponic segment, Hawthorne. Furthermore, Scotts stated that the reduction would most certainly result in lower adjusted earnings per share than originally forecasted. Shares of the company are currently trading for $115.05, which is a significant decline from the year’s high of $254 that was set earlier this year.

Speaking at the Raymond James 43rd Annual Institutional Investors Conference, CFO of Scotts Miracle-Gro, Cory Miller, said that the company now anticipates Hawthorne sales to decrease 15% to 25%, including the benefits of acquisitions. Sales in the segment have been hampered for several months, according to the company, due to an oversupply of cannabis, which has caused a halt in both indoor and outdoor cultivation.

During the presentation, Miller stated that as a result of this decline, a large purchase to boost the company’s footprint in the live goods category is no longer expected in fiscal 2022. Scotts Miracle-Gro had been actively pursuing such a possibility, over the last year; however, those talks have come to a stop.

Because of the lowered Hawthorne sales expectation, Scotts Miracle-Gro’s guidance for non-GAAP adjusted earnings per share is unlikely to be met. However, Miller stated that management is confident about the U.S. Consumer segment’s sustained strength and is striving to close the profitability gap caused by the Hawthorne sales shortfall, with a goal of non-GAAP adjusted earnings per share of at least $8.00.

In addition, the company said it expects to provide a further update on May 3, 2022, when it releases its second-quarter results.

#3: Acreage Holdings

On March 10, 2022, Acreage Holdings, Inc. (OTC: ACRHF) released its financial results for the fourth quarter of 2021, and full year ended December 31, 2021. Total revenue for Q4 2021 was $58.1 million, an increase of $26.6 million or 84% compared to Q4 2020.

Acreage said that the acquisitions of Ohio, California, and Maine operations over the last 12 months, as well as extra revenue from the completion of expansions at several of their cultivation sites, along with increased demand and production across several states, was what drove the year-over-year rise for the company.

In addition, the company reported that the revenue growth was somewhat offset by revenue declines due to divestitures and declines within its operations that were being held for sale. Additionally, they said that total revenue for Q4 2021 improved sequentially by $9.9 million or 21% compared to the third quarter of 2021. The company also had total gross profit of $27.6 million, which is an increase of $13.1 million or 90% compared to Q4 2020.

In terms of balance sheet and liquidity, Acreage ended the year with $44.3 million in cash and cash equivalents and restricted cash. The Company also reported that they secured a $150 million Credit Facility with a syndicate of lenders. Under the terms of the Credit Facility, $100 million was available for immediate use and a further $50 million will be available in future periods under a committed accordion option once certain, predetermined milestones are achieved. Acreage said that it intends to use the proceeds of the Credit Facility to fund expansion initiatives, repay existing debt, and provide additional working capital.

Top Psychedelic Companies for Week

#1: Awakn

Awakn Life Sciences Corp. (NEO: AWKN) (OTC: AWKNF), a biotechnology company, researching, developing, and delivering psychedelic therapeutics to treat addiction, announced on March 09, 2022, that Anthony Tennyson, Chief Executive Officer, is scheduled to present at some upcoming March 2022 investor conferences.

Some of these investor conferences include; 34th Annual ROTH Conference, which will happen on Sunday, March 13th to Tuesday, Match 15^th, Oppenheimer’s 32nd Annual Healthcare Conference, which will be held on Wednesday, March 15th to Thursday, March 17^th, and Maxim’s 2022 Virtual Growth Conference which will occur on Monday, March 28th to Wednesday, March 30^th.

If you are interested in learn more about Awakn’s goals and progress of using psychedelic therapeutics to better treat addiction, you can register here, and you will get to learn more about the company  and the progress they are making, from the CFO, Anthony Tennyson.

#2: Numinus Wellness

Numinus Wellness Inc. (TSX: NUMI) (OTC: NUMIF), a mental health company focused on developing innovative treatments and safe, evidence-based psychedelic-assisted therapies, announced on March 9, 2022 that it had received approval from Health Canada to conduct research on Ayahuasca and San Pedro at its licensed, state-of-the-art research facility, Numinus Bioscience.

This license expansion will help Numinus cement its reputation as a leading global research center for natural psychedelic medicines, and it will complement Numinus’ present work on Psilocybe species and intrinsic synergistic chemicals.

Numinus Bioscience has been granted permission to work with San Pedro cactus, the beta-carbolines harmaline and harmalol, and the botanical materials Banisteriopsis caapi, Psychotria viridis, Diplopterys cabrerana, and Mimosa tenuiflora, thanks to the renewal of its Dealers’ License.

The botanical ingredients are noteworthy for their use as admixtures in Ayahuasca, a hallucinogenic beverage prepared from a variety of plant components that is used in Amazonian Indigenous traditional practices for ceremonial, medical, and spiritual purposes.

Since 2020, Numinus Bioscience’s license has been significantly revised to broaden the scope of its research activities, with prior permissions permitting the study of DMT, Ketamine, LSD, MDMA, Mescaline, Psilocin, and Psilocybin. Approved activities for these include possession, analytical testing, production, assembly, sale, export and delivery.