Weekly Roundup on the Cannabis Sector & Psychedelic Sector

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.
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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.

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