Key Takeaways; Cannabis Sector

• TerrAscend secured $79 million debt financing amid strategic exit from Michigan
• Auxly Cannabis marked a major financial turning point with debt reduction and strategic refinancing
• Mercanto secured early wins in Quebec as the province opens doors to vape market

Key Takeaways; Psychedelic Sector

• MIRA revealed SKNY-1’s unique ability to reverse anxiety behavior while fighting obesity and nicotine addiction
• Filament Health secured FDA green light for phase 2 trial of psilocybin to treat PTSD and AUD in veterans and first responders
• Revive Therapeutics clarified progress on bucillamine nerve agent study
• Silo Pharma is targeting 2025 IND filing for breakthrough PTSD drug

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: TerrAscend

TerrAscend Corp. (TSX: TSND) (OTCQX: TSNDF), a leading North American cannabis company, successfully completed a $79 million non-dilutive debt financing round, marking a significant step in its long-term strategic plan as it exits the Michigan market.

According to a company statement released on Wednesday, $69 million of the funds were used to retire existing debt, while the remaining capital will fuel future growth initiatives, including potential mergers and acquisitions. The loan, which was led by New York-based FocusGrowth Asset Management, carries a 12.75% interest rate and matures in August 2028, with no prepayment penalties or warrant issuance.

“This loan extends the vast majority of our debt until late 2028 and provides additional capital to execute on our growth initiatives, including M&A,” said Jason Wild, Executive Chairman of TerrAscend. “This transaction reflects FocusGrowth’s confidence in the company’s vision and strategy.”

In addition to the $79 million, the agreement included an uncommitted $35 million term loan facility available for future strategic acquisitions.

FocusGrowth Partner, Peter Bio, also commented, “TerrAscend has established itself as a market leader in multiple states with ample greenfield opportunities. We’ve enjoyed working with the team and are already evaluating additional opportunities with them.”

The financing comes at a pivotal time for TerrAscend, which earlier this month announced its planned exit from Michigan following a comprehensive review of its operations in the state. The company stated that it intends to divest all Michigan assets, including 20 dispensaries and four cultivation and processing facilities.

TerrAscend, which operates in states including Pennsylvania, New Jersey, Maryland, Ohio, and California, reaffirmed that it continues to strengthen its presence in core markets while trimming operations in regions deemed less strategic.

#2: Auxly Cannabis

Auxly Cannabis Group Inc. (TSX: XLY) (OTCQB: CBWTF) officially closed two major financial transactions aimed at reducing debt and improving liquidity, moves Auxly CEO, Hugo Alves, called “a turning point” for the company.

The Toronto-based cannabis producer announced on Tuesday the completion of an amended credit facility with Bank of Montreal (BMO) and the full settlement of its debt obligations to Imperial Brands plc, which has been a strategic investor in Auxly since 2019. These initiatives were first disclosed on June 19 and are now finalized.

As a result of the completed transactions, Auxly eliminated approximately $21 million in debt and reduced its annual debt servicing obligations by $700,000. Additionally, the company now has access to a new $10 million revolving credit facility, which will provide greater liquidity to fund operational and strategic initiatives. Importantly, these improvements also removed the “going concern” uncertainty that had been disclosed in Auxly’s recent financial statements, signaling renewed financial stability and long-term viability.

“This is a pivotal moment for Auxly,” said CEO Hugo Alves in a statement. “We emerge from these transactions with a transformed balance sheet and the financial strength to fuel future growth. We are profitable, we are growing, we have brands and products people trust—and now we have the financial fortitude to keep building.”

Additionally, Auxly’s Chief Financial Officer, Travis Wong, also emphasized that the transactions represent a major milestone in Auxly’s financial evolution. “We’ve reduced debt, extended the term of our senior facility, and secured a new working capital facility,” Wong said. “These improvements give us the flexibility to execute our strategy with confidence.”

In a parallel deal, Imperial Brands converted the remaining $1 million principal of its convertible debenture and approximately $1.39 million in accrued interest into common shares of Auxly. Furthermore, Imperial received pre-funded warrants to acquire up to 90.9 million shares in exchange for an additional $7.37 million in interest, while forgiving approximately $11.79 million in remaining accrued interest.

Following these conversions, Imperial now owns approximately 19.9% of Auxly’s outstanding shares and retains the right to exercise warrants over time, without exceeding that ownership threshold.

#3: Mercanto

Montreal-based Mercanto Holdings Inc. (TSX-V: MUSH) (OTC: TGSHF) secured a strategic foothold in Quebec’s long-awaited cannabis vape market, receiving preliminary acceptance from the province’s cannabis authority for three vape cartridge products under its Velada and Nordique Royale brands.

The three products; Cherry Blossom, Afghan Gold, and Peach Sumo, will place Mercanto among the top players in Quebec’s new vape segment, commanding 8% of shelf space in physical stores and 10% of online listings at launch. This approval comes as Quebec, the last major Canadian province to legalize cannabis vape sales, prepares for a November 2025 rollout.

“This is an important steppingstone for Mercanto and the culmination of our experience in Quebec,” said CEO Eric Ronsse. “Vape cartridges represent the last true gold rush in Canadian cannabis. With no entrenched incumbents in Quebec, we are as well positioned as any competitor, starting on equal footing in a market with enormous potential.”

The Quebec cannabis authority forecasts vape products will make up 11% of total cannabis sales in the first year; a potential $68 million market. Notably, half of this is expected to be incremental growth, offering a significant expansion opportunity for producers.

Mercanto is just one of the two companies authorized to supply vape batteries, allowing it to deliver a complete product ecosystem to consumers.

“For the first time, we’re entering a new category where no player holds an advantage,” Ronsse explained. “While our products won’t be the cheapest, they’re built on quality and experience — and that’s where long-term value lies.”

Additionally, the province will eliminate its nursery program in October — previously a six-month product probation phase — allowing trusted suppliers like Mercanto to launch directly into all retail stores in the province.

Top Psychedelic Companies for Week

#1: MIRA Pharmaceuticals

MIRA Pharmaceuticals, Inc. (NASDAQ: MIRA) announced promising new preclinical results for SKNY-1, an oral drug candidate targeting obesity and nicotine addiction. The drug demonstrated a clear reversal of anxiety-related behavior in an established animal model, setting it apart from previous CB1-targeting drugs that were halted due to serious central nervous system side effects.

“These findings are a significant step forward,” said Erez Aminov, CEO of MIRA. “The ability to suppress appetite and cravings while reversing anxiety-like effects is critical. These results reinforce the differentiated approach behind SKNY-1 and its potential role as a novel oral treatment in large, underserved markets.”

SKNY-1’s unique mechanism targets the endocannabinoid system with a multi-pathway approach, including biased CB1 antagonism that blocks craving-related signaling without disturbing emotional regulation, partial CB2 agonism to reduce brain inflammation, and mild MAO-B inhibition to modulate dopamine—all while avoiding MAO-A inhibition linked to mood instability.

In the study using zebrafish, SKNY-1 reversed anxiety behavior induced by a CB1 activator and enhanced calming effects, bringing anxiety-like behavior to or better than normal control levels. This contrasts with rimonabant, a previous CB1 inverse agonist withdrawn from the market due to severe psychiatric effects.

Dr. Itzchak Angel, MIRA’s Chief Scientific Advisor, explained, “SKNY-1 appears to meet the challenge of blocking cravings while preserving emotional balance head-on. Its distinct pharmacological profile is underscored by how differently it interacts compared to Rimonabant.”

Given the massive global burden of obesity and addiction—costing the U.S. alone $1.7 trillion annually—SKNY-1’s oral formulation and differentiated pharmacology may fill important gaps left by current injectable weight-loss drugs and modestly effective smoking cessation therapies with psychiatric warnings.

#2: Filament Health

Filament Health Corp. (OTC: FLHLF) announced that the FDA had authorized a Phase 2 clinical trial to evaluate its botanical psilocybin drug candidate, PEX010, for treating alcohol use disorder (AUD) and post-traumatic stress disorder (PTSD) in military veterans and first responders. The trial, which is led by Dr. Nathan Sackett at the University of Washington’s Center for Novel Therapeutics in Addiction Psychiatry, will be the first to explore the safety of psilocybin combined with psychological support in individuals facing both conditions simultaneously.

“Despite the significant overlap between AUD and PTSD, there is a lack of evidence-based treatment options for people experiencing both conditions, particularly among veterans and first responders, who are disproportionately affected,” said Dr. Sackett. “This study will be the first to investigate the safety of psilocybin-assisted support in this dual-diagnosis population, and we are grateful to Filament for enabling this important research.”

The trial will administer a single 25 mg dose of PEX010 alongside non-directive psychological support, which includes safety monitoring, empathetic presence, and integration sessions. Veterans and first responders are known to suffer disproportionately from these co-occurring disorders, yet current treatments are often ineffective.

Benjamin Lightburn, Filament Health’s Co-Founder and CEO, remarked, “Veterans and first responders dedicate their lives to protecting others, yet are often left behind with regard to mental health treatments. We’re proud to contribute to this urgently needed research, which could help shape the future of care for those who have given so much to their communities.”

Funded by the State of Washington, the trial is now enrolling participants with results expected by fall 2026.

#3: Revive Therapeutics

Revive Therapeutics Ltd. (OTCQB: RVVTF) (CSE: RVV) issued a statement clarifying the status of its ongoing research study evaluating Bucillamine as a potential treatment for nerve agent exposure. Conducted in partnership with Defence R&D Canada – Suffield Research Centre (DRDC), the study is scheduled to continue through September 2025, with final findings to be released only with DRDC’s authorization.

The clarification follows Revive’s previous announcement highlighting promising interim results and the study’s significance in addressing the growing global demand for battlefield-ready medical countermeasures. While the company has not yet initiated discussions for future collaborations with DRDC, it confirmed such decisions would depend on the results of the current study.

Michael Frank, CEO of Revive Therapeutics, emphasized the critical timing of the initiative, stating, “Our collaboration with DRDC is reaching a critical milestone at a time when the world is acutely aware of the need for robust national defense and preparedness.”

Bucillamine, a thiol-based drug with anti-inflammatory and antioxidant properties, is being explored for both prophylactic and post-exposure use in protecting against brain injury caused by nerve agents and organophosphate pesticides. Its mechanism involves replenishing glutathione, a key antioxidant depleted during toxic exposure, making it a promising candidate for both military and civilian applications.

The company also hinted at broader applications for Bucillamine, including traumatic brain injury and viral infections, positioning it as a versatile therapeutic option in a volatile geopolitical landscape.

Revive’s collaboration with a Canadian federal defense agency bolsters its standing in the life sciences sector and could pave the way for expedited regulatory approval and strategic stockpiling in 2026. Governments, particularly in the West, have demonstrated willingness to invest heavily in countermeasures, as seen through initiatives like the U.S. Project BioShield Act.

Should Bucillamine gain approval, Revive anticipates significant procurement opportunities, especially among Canada’s “Five Eyes” intelligence allies—the U.S., U.K., Australia, and New Zealand.

“An effective and easily administered countermeasure like Bucillamine has the potential to protect our service members and first responders,” Frank added. “The successful conclusion of this study could unlock a substantial commercial opportunity through government stockpiling contracts and firmly establish Revive as a key player in the medical countermeasure space.”

#4: Silo Pharma

Silo Pharma, Inc. (NASDAQ: SILO) announced that it is pushing forward with its lead drug candidate, SPC-15, an innovative intranasal treatment for Post-Traumatic Stress Disorder (PTSD), with plans to submit an Investigational New Drug (IND) application to the U.S. Food and Drug Administration (FDA) before the end of 2025. The submission is contingent on the outcome of key preclinical studies expected within the next 30 to 90 days, the company announced.

SPC-15, a 5-HT4 receptor agonist, is being developed to enhance stress resilience, offering a novel approach distinct from current FDA-approved PTSD treatments, which primarily address depressive symptoms. “If the FDA approves our IND within the 30-day review period, we could initiate a Phase 1 clinical trial before the end of 2026,” said Eric Weisblum, CEO of Silo Pharma.

The preclinical program includes two FDA-requested toxicology studies, a GLP-compliant toxicokinetic animal study and a 7-day safety study in large animals, along with a device study evaluating the microchip-based nasal spray system specific to SPC-15. These steps are designed to support a robust and compliant IND submission.

Weisblum also confirmed the company’s intent to pursue the FDA’s 505(b)(2) regulatory pathway, which allows developers to leverage existing data on previously approved drugs. “This strategy can significantly shorten our clinical timelines and reduce development costs,” he explained.

SPC-15 is being developed in collaboration with Columbia University, and Silo holds exclusive global rights to its development and commercialization.

The urgency for new PTSD treatments is growing: the condition affects nearly 4% of the global population, yet no new drug has been approved for PTSD in the U.S. in almost 25 years. Only two FDA-approved drugs currently exist, neither of which address the full spectrum of PTSD symptoms. Silo sees SPC-15 as a potential game-changer in this stagnant therapeutic space.