Key Takeaways; Cannabis Sector

• Advanced Flower injected $14 million to fuel Standard Wellness expansion across key U.S. markets
• Organigram expanded into U.S. hemp-derived THC market with acquisition of Collective Project
• Vext exited Kentucky medical marijuana market to refocus on core states
• Innovative Industrial is grappling with tenant defaults, as the company faces a tough road ahead

Key Takeaways; Psychedelic Sector

• Filament Health secured C$900K financing, the company also plans to delist from Cboe Canada
• HOPE Therapeutics expanded Florida presence with an acquisition
• Solvonis and Awakn is advancing promising PTSD treatment

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

Top Marijuana Companies for the Week

#1: Advanced Flower

In a strategic move signaling continued confidence in the growth potential of the cannabis industry, Advanced Flower Capital Inc. (NASDAQ: AFCG) announced a $14 million senior secured credit facility to subsidiaries of Standard Wellness Holdings, a privately held multi-state cannabis operator. Of the total credit, $10.5 million was funded at closing, with the remaining funds to be deployed as needed.

According to Standard Wellness, this investment will support the company’s ambitious plans to acquire a dispensary in Missouri, relocate another dispensary in Utah, and refinance and consolidate existing debt facilities, hence enhancing operational efficiency and strengthening their footprint in key limited-license states.

“The Standard Wellness team have proven to be astute capital allocators,” said Daniel Neville, CEO of Advanced Flower Capital. “We are excited to support them as they continue to expand and optimize their business. As we diversify our portfolio, Standard Wellness checks all the boxes; stable operations, strategic market presence, and a seasoned management team with a proven record of success”.

Jared Maloof, CEO of Standard Wellness, praised the partnership with AFC. “Having closed on several debt facilities in the cannabis space, our team was extremely impressed with AFC’s working knowledge of the complexities of our industry,” Maloof said.

The deal is backed by a first lien on Standard Wellness’s Utah operations and dispensaries in St. Louis, Missouri, and Cincinnati, Ohio, as well as a second lien on the company’s Ohio cultivation facility. Collateral includes owned real estate and the value of state-issued cannabis licenses.

This latest financing aligns with AFC’s mission to provide institutional-quality capital to cannabis operators across the U.S. The company specializes in originating and managing loans secured by real estate, licenses, and cash flow, with deal sizes ranging from $10 million to over $100 million.

#2: Organigram

Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), Canada’s leading cannabis company by market share, officially entered the rapidly expanding U.S. hemp-derived THC beverage market through the acquisition of Ontario-based beverage company Collective Project Limited. This strategic move not only marked a pivotal move for Organigram into the booming hemp-derived THC beverage sector in the U.S. but also accelerated its presence in the emerging cannabis beverage category in Canada.

The acquisition, which was announced on April 1, involved an upfront cash payment of approximately C$6.2 million, with a potential milestone and earnout payments totaling up to C$24 million over the next two years. If all benchmarks are met, the transaction could reach a total value of around C$30 million, making it one of the industry’s largest deals in recent years.

“This acquisition represents our first commercial entry into the fast-growing hemp-derived THC beverage market in the U.S.,” said Beena Goldenberg, CEO of Organigram. “It also fast tracks our entry into the cannabis beverage category in Canada, a category that we believe is on the cusp of growth at home.”

Collective Project, which was launched by Hamilton-based Collective Arts in 2013, is known for its unique combination of craft beverages and artist-designed packaging. The brand produces cannabis- and hemp-infused sparkling juices, teas, and sodas with premium, flavor-forward profiles made from real fruit juice and no artificial sweeteners.

Matt Johnston, co-founder of Collective Project, expressed confidence in the partnership: “We are pleased to be working with Organigram, not only Canada’s leading cannabis company but also one deeply committed to high-quality products backed by R&D and science-backed innovation.”

Organigram officially rebranded recently as Organigram Global, marking a strategic shift to solidify its position as a global cannabis leader. And this acquisition further signals a firm commitment to innovation, market leadership, and unlocking new consumer segments in both North America and beyond.

#3: Vext

Vancouver-based cannabis operator Vext Science, Inc. (CSE: VEXT) (OTCQX: VEXTF) announced the sale of its Kentucky medical marijuana processing license for $880,000 in cash, signaling a strategic withdrawal from the state’s cannabis sector. According to Vext, the move will allow the company to sharpen its focus on its primary markets in Arizona and Ohio.

The license, which was originally held by Vext’s subsidiary Vapen Kentucky LLC and an unnamed partner, was fully acquired by Vext in March using non-cash consideration. However, with the recent sale, Vapen Kentucky will now operate solely in the hemp space.

“This transaction underscores our disciplined approach to capital allocation and strategic focus on maximizing returns in our core markets,” said Vext CEO, Eric Offenberger. “By divesting the processing license in Kentucky, we are deepening our focus on our core operations in Arizona and Ohio, where we see the most compelling opportunities to drive long-term value.”

Offenberger added, “The proceeds of the sale strengthen our balance sheet and will support the buildout of our Ohio retail footprint as we continue to prioritize profitability and cash flow growth.”

Vext plans to use the sale proceeds to reduce debt, expand retail operations in Ohio, and for general corporate needs. The transaction is expected to close in the second quarter of 2025, pending regulatory approval from the state of Kentucky.

#4: Innovative Industrial

Innovative Industrial Properties, Inc. (IIP) (NYSE: IIPR), a cannabis-focused real estate investment trust, announced that it is facing mounting pressure as multiple tenants have defaulted on rent payments, prompting investor concern and a sharp decline in the company’s stock.

In a recent press release, IIP acknowledged defaults from key tenants, including 4Front Ventures Corp. (CSE: FFNT) (OTCQB: FFNTF), Gold Flora Corporation (Cboe Canada: GRAM) (OTCQB: GRAM), and TILT Holdings Inc. (Cboe CA:TILT) (OTCQB: TLLTF), collectively representing over 10% of the company’s contractual rent. These defaults come amid broader industry headwinds like high taxation, falling cannabis prices, and limited access to capital. IIP stated it is “proactively seeking to refresh a substantial portion of its tenant base with more financially viable long-term tenants,” though it offered few specifics.

PharmaCann, a privately held cannabis company and IIPR’s largest tenant, also failed to honor a recent payment plan, defaulting on all leases in December and further deepening concerns about IIPR’s revenue stability. Adding to the uncertainty, Gold Flora’s recent filing for voluntary receivership raised additional red flags regarding the company’s profitability and long-term growth prospects.

Analysts are unimpressed by the IIPR’s current options. Aaron Grey of Alliance Global Partners noted, “The alternative of evictions is a route that could be taken but would take time and eventually come with rents closer to market rate, which would be lower.” He also warned that facilities built for cannabis cultivation may be difficult to re-lease or repurpose quickly.

Considering the ongoing defaults, Alliance Global Partners downgraded IIPR’s price target from $70 to $55 and flagged a potential dividend cut. They also maintained a neutral rating on the stock, citing continued uncertainty until more tenants secure refinancing.

As of now, IIPR’s future strategy hinges on evictions or rent renegotiations, both of which carry financial downsides. Until its tenant base stabilizes, analysts and investors alike remain cautious.

Top Psychedelic Companies for Week

#1: Filament Health

In a decisive move to stabilize its financial footing and refocus its strategic trajectory, Filament Health Corp. (OTCQB: FLHLF) (Cboe CA: FH), which is a clinical-stage natural psychedelic drug development company, announced a private placement to raise approximately C$900,000, while also announcing a plan to voluntarily delist from the Cboe Canada exchange.

The financing is being led by psychedelic-focused investment fund Negev Capital Fund One and key company insiders, including CEO and Co-founder Benjamin Lightburn. The deal comprised secured convertible debentures carrying a 9% annual interest rate, which are convertible into common shares at C$0.02, along with three-year warrants priced at C$0.03 per share.

Vadim Uzberg, partner at Negev Capital, reaffirmed the investor’s confidence in the company: “As a longstanding supporter of Filament Health and its mission, we are pleased to continue our commitment. Filament remains well-positioned, leveraging its groundbreaking botanical drug development platform and an industry-leading intellectual property portfolio.”

Additionally, the company stated that the decision to delist comes on the heels of mounting financial pressure and low trading volume on the Cboe Canada exchange. “Maintaining the listing has become financially and administratively burdensome,” the company stated, noting that the saved costs would be redirected to clinical development and operational efforts.

Lightburn emphasized the strategic nature of the move: “This financing, in conjunction with the planned delisting, will allow for the pursuit of certain near-term objectives,” he said. He also pointed out that the company’s presence on Cboe Canada has hindered potential future listings on senior U.S. exchanges.

Despite the delisting, Filament will remain a reporting issuer in Canada, maintaining its disclosure obligations under national securities regulations.

#2: HOPE Therapeutics

HOPE Therapeutics, Inc., a healthcare delivery company currently developing a network of interventional psychiatry clinics to offer psychedelic medications and a subsidiary of NRx Pharmaceuticals, Inc. (NASDAQ: NRXP), announced its acquisition of Dura Medical, a Florida-based network of clinics specializing in interventional psychiatry and chronic pain treatment. The move is part of HOPE’s broader strategy to expand its footprint in Florida and broaden its range of advanced therapies for mental health.

Though financial details were not disclosed, HOPE confirmed that Dura Medical is both revenue-generating and EBITDA-positive. As part of the agreement, Stephen Durand, founder of Dura Medical and a U.S. Army Reserve veteran, will assume the role of Director of Florida Clinic Operations under the new ownership.

“We founded Dura Medical with the mission to reduce suicide in our community and aim to treat more than 10,000 people by 2026,” said Durand. “We’re excited to align that mission with the HOPE Network and to lead HOPE’s expansion in Florida and beyond.”

Founded in 2018, Dura Medical provides treatments including ketamine therapy, transcranial magnetic stimulation (TMS), Spravato, Stellate Ganglion Blocks, and traditional psychiatry services. These therapies support patients dealing with depression, PTSD, anxiety, suicidality, and other related disorders. The clinics also serve military veterans through the Veterans Affairs Community Cares Network.

HOPE’s co-CEOs, Dr. Jonathan Javitt and Matthew Duffy, praised Durand’s leadership and the synergy between the two organizations: “Steve Durand has been a pioneer in combining psychedelic medications with neuroplastic technologies like TMS for treating suicidal depression and PTSD. We’re thrilled to incorporate Dura’s excellence and commitment to care into HOPE’s Florida network.”

The acquisition comes at a time when HOPE Therapeutics is actively expanding. The company recently signed a $2.5 million term sheet with a global medical device manufacturer, supporting the build-out of its interventional psychiatry network. This investment, which is paired with bank financing and existing assets, is expected to close alongside HOPE’s ongoing clinical acquisitions.

#3: Awakn

Solvonis Therapeutics PLC (LSE: SVNS) shared significant progress in its joint project with Awakn Life Sciences Corp. (CSE: AWKN) (OTC: AWKNF), which is aimed at developing a groundbreaking treatment for post-traumatic stress disorder (PTSD). The project, which is known as the AWKN-SDN-14 programme, seeks to create a drug that enhances social bonding, trust, and empathy, which are key traits critical to effective PTSD therapy.

“Our goal is to help patients reconnect with others and better engage in the healing process,” a Solvonis spokesperson said.

Despite a setback last year when their original research partner, Charnwood Discovery, entered administration, the project is now back on track. Concept Life Sciences has since stepped in, successfully synthesising three of the six planned drug candidates, with the remaining expected by May.

Lab testing is underway, first conducted by Eurofins Discovery and now continuing with Evotec, a global leader in drug discovery. Evotec’s role is to evaluate the compounds’ ability to release neurotransmitters like serotonin, dopamine, and noradrenaline, which are the key chemicals involved in PTSD recovery.

Early lab results have been promising. “Initial findings suggest we’re heading in the right direction,” the company noted.

Solvonis and Awakn anticipate selecting a lead drug candidate by the end of September, marking a crucial step toward delivering a novel and much-needed PTSD therapy to the market.