Weekly overview of the cannabis sector and the psychedelic sector

Key points to remember; Cannabis sector

  • Gage raises $ 55 million to fuel its marijuana growth in Michigan.
  • Ayr Wellness to acquire two cannabis stores in Chicago for at least $ 55 million.
  • Canada’s High Tide to acquire 80% of Colorado-based CBD company NuLeaf Naturals.
  • Germany will legalize sales of recreational cannabis, announces the new coalition.

Key points to remember; Psychedelic sector

  • Numinus receives conditional approval to list on the Toronto Stock Exchange.
  • COMPASS Pathways has granted the fifth US patent for crystalline psilocybin.
  • Cybin gives a grant to establish a psychedelic treatment clinic.
  • Awakn signs a partnership with the NHS to increase access to psychotherapy assisted by psychedelics.

The marijuana boom during the pandemic boosted revenues for U.S. cannabis companies. Although recent third quarter results for some were not up to par, revenue continues to grow. Most of the domestic cannabis producers have established a strong market presence with sound growth strategies.

In this week’s roundup, we start with Germany, where all three parties expected to form the next government in Germany has agreed to regulate the distribution and sale of recreational cannabis, according to a coalition agreement released Wednesday, November 24.

Europe’s largest economy taking a step towards legalizing and regulating marijuana is seen as a significant achievement by social groups who have long advocated for an end to the cannabis ban. Businesses and corporations hope to profit from sales of the drug under the watchful eye of government regulators.

As domestic and global cannabis legalization intensifies and the prospect of federal legalization in the United States increases, domestic and international players in the industry will have many opportunities to grow.

Best stocks of marijuana for the week

# 1: gauge growth

Gage Growth Corp. (OTC: GAEGF) innovates and delivers the highest quality cannabis experiences possible for cannabis consumers in the state of Michigan and Canada and markets internationally renowned brands. Through years of progressive industry experience, the company’s founding partners have successfully built and developed operations with federal and state licenses, including cultivation, processing and retail sites. Gage’s portfolio includes city and state approvals for 19 “Class C” cultivation licenses, three processing licenses and 15 supply centers (dispensaries).

The Michigan-based company said it raised $ 55 million in capital through a one-year secured loan to help finance retail acquisitions and growth in the state. The annual interest rate on the loan is set at the greater of 7% plus the prime rate, or 10.25%, according to a press release from the Company on November 22, 2021. Currently, the prime rate is 3.25 %, which means that the loan is at the annual rate of 10.25%, payable monthly.

IN THE RELEASE, Gage CEO Fabian Monaco said the deal, which is secured by a first lien on the company’s assets, gives the company “maximum flexibility to execute short-term acquisition opportunities. term”.

The financing comes as New York and Toronto-based multi-state operator TerrAscend buys Gage in an all-equity transaction with an initial value of $ 545 million. Canaccord Genuity Corp. and Chicago Atlantic arranged the $ 55 million loan.

# 2: Ayr Well-being

Ayr Well-being Inc. (OTC: AYRWF) is a growing, vertically integrated US multi-state cannabis operator focused on delivering the highest quality cannabis products and customer experience across its footprint.

Multi-state marijuana operator announced an agreement to acquire Dispensary 33, which operates two cannabis retail stores in Chicago, for at least $ 55 million.

According to a press release on Monday, November 22, the $ 55 million price includes $ 12 million in cash, $ 3 million in sellers’ notes and $ 40 million in Ayr shares. An unspecified top-up payment will be based on financial milestones until 2022.

The acquisition will give Ayr “a presence in two of Chicago’s most desirable neighborhoods,” Jonathan Sandelman, CEO of the Miami-based company, said in the statement.

The Chicago retail deal follows another acquisition of Ayr in Quincy, Ill. Earlier this year in which the company will pay around $ 30 million to purchase Herbal Remedies Dispensaries. Ayr’s statement says the company also has a social equity partner who has been asked for a retail license in Bloomington, Illinois.

“We will continue to look for development opportunities in Illinois,” Sandelman said. The company recently raised around $ 150 million in capital after its wave of acquisitions this year.

# 3: high tide

High Tide Inc. (NASDAQ: HITI) is a leading retail-focused cannabis company with physical assets as well as global e-commerce assets. The company is Canada’s largest recreational cannabis retailer by revenue, with 104 current locations in Ontario, Alberta, Manitoba, and Saskatchewan, and was named in Report on Business magazine’s third annual ranking of fastest growing companies in Canada in 2021.

Canadian Cannabis, CBD & Accessory Retail Company Announcement a deal to acquire 80% from Denver-based producer and distributor of CBD wellness products, NuLeaf Naturals. High Tide also has an option to acquire the remaining 20% ​​of the Colorado company.

According to a press release, the deal announced on Monday, November 22 is worth just over $ 31.2 million, which values ​​NuLeaf at over $ 39 million. High Tide will pay in shares and have a three-year call option to acquire the remainder.

The owners of NuLeaf also have an 18-month put option to sell the remainder of the company to High Tide. If High Tide acquires the rest of NuLeaf, it will pay in cash.

“With the purchase of NuLeaf, we are now more vertically integrated into our CBD business, just as we have been with consumer accessories,” said Raj Grover, President and CEO of High Tide, in a statement.

This year, Calgary, AB-based High Tide acquired Milwaukee-based FabCBD and UK-based brand Blessed CBD. High Tide also owns several online cannabis accessory retailers and operates over 100 marijuana retail stores across Canada.

Best psychedelic stocks for the week

# 1: Numinus

Numinus Well-being Inc. (TSXV: NUMI.V) is a Canadian publicly traded company working in the psychedelic space. The company’s operations include Numinus Bioscience, a research and testing facility; Numinus Health, a model of treatment and healing center; and Numinus R&D. The company’s goal is to help people heal and feel good through the development and delivery of innovative mental health care and access to safe and evidence-based psychedelic-assisted therapies. .

The Vancouver-based Numinus received conditional approval to graduate from the TSX Venture Exchange (TSXV) to the Toronto Stock Exchange (TSX). The shares will continue to trade under the symbol NUMI.

# 2: Cybine

Cybin Inc. (NYSE: CYBN) is a leading ethical biopharmaceutical company, working with a network of world-class partners and internationally renowned scientists to create safe and effective treatments for patients to treat a multitude of mental health issues. Based in Canada and founded in 2019, Cybin is operational in the United States, United Kingdom and Ireland.

On Tuesday, November 23, Cybin announced that he had been got a grant for a psychedelic treatment clinic at Lenox Hill Hospital “to serve the marginalized and underserved communities of the Upper East Side of Manhattan, New York.”

# 3: COMPASS course

COMPASS Pathways plc. (NASDAQ: CMPS) is a mental health care company dedicated to accelerating patient access to evidence-based innovation in mental health. The UK-based company is a leading company in its industry focused on the development of psilocybin-assisted psychotherapies for a number of high-load mental health conditions.

COMPASS Pathways announced on Tuesday that it has obtained its fifth US patent, which is his 10th patent overall. The new patent covers methods of treating depression resistant to treatment with crystalline psilocybin, as well as oral dosage forms of crystalline psilocybin with an excipient. The company’s synthesized psilocybin formulation, which is used in its trials and dubbed COMP360, contains crystalline psilocybin.

# 4: wake up

Awaken the life sciences (NEO: AWKN) (OTCQB: AWKNF) is a biotechnology company with clinical operations, developing and supplying psychedelic therapies (drugs and therapies) to better treat drug addiction. The UK-based company works to develop and deliver treatment for drug addiction and substance use disorder (SUD).

The biotechnology company signed a memorandum of understanding with the Devon Partnership NHS Trust and the University of Exeter to establish an evidence framework for the use of ketamine-assisted psychotherapy as an alternative treatment for alcohol use disorder and treatment-resistant depression in the NHS.

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