It’s time for your Daily Hit of cannabis financial news for December 6, 2021.
On The Site
High Tide Inc. (TSXV: HITI) (NASDAQ: HITI) announced that it was going to issue up to C$40 million (or the equivalent in U.S. dollars) of common shares at the company’s discretion and subject to regulatory requirements. High Tide said it plans to use the net proceeds of the offering to fund two specific strategic initiatives it is currently developing, to support the growth and development of the company’s existing operations, funding future acquisitions as well as working capital and general corporate purposes.
Psychedelic biotech company GH Research PLC (Nasdaq: GHRS) reported financial results for the third quarter ended September 30, 2021, and gave updates on its business. R&D expenses were $2.6 million for the quarter ended September 30, 2021, compared to $55 thousand for the same quarter in 2020. The increase was primarily due to increased activities relating to the company’s technical developments and clinical trials and increases in employee expenses to support these activities. the company has no revenue to report at this time. G&A expenses were $2.1 million for the quarter versus $5 thousand for the same quarter in 2020. GH Research said the increase was primarily due to higher professional and compliance fees associated with being a public company, as well as increased employee expenses. The company also reported a net loss of $1.8 million, or $0.035 loss per share versus $60 thousand, or $0.002 loss per share, for the same quarter in 2020. Cash was $280.7 million as of September 2021 versus $5.9 million as of December 31, 2020.
Novamind Inc. (CSE: NM)(OTCQB: NVMDF) has opened a new clinic located in downtown Salt Lake City to address addiction. The SLC Clinic specializes in integrative behavioral health and services for adults with substance use disorders led by incoming Medical Director, Dr. Amy de la Garza. Dr. Reid Robison, Novamind‘s Chief Medical Officer, commented: “Social isolation and despair related to the COVID-19 pandemic have further fueled a significant increase in substance use disorders and related deaths. Dr. de la Garza’s expertise in addiction medicine and behavioral health is a vital addition to our team as we continue to expand Novamind’s clinic footprint to address unmet need and broaden our innovative, evidence-based treatments.”
In Other News
Schwazze (OTCQX:SHWZ) has entered into a securities purchase agreement with institutional investors and individuals under which the company will issue and sell, subject to customary closing conditions, $95 million of principal amount and $93 million of funding amount (reflecting a 2% original issue discount) of convertible notes. The company said it anticipates using the proceeds from the note to fund the cash consideration of recently announced acquisitions and other growth and expansion initiatives.Schwazze is also pleased to announce that it has signed definitive documents to acquire substantially all the operating assets of Reynold Greenleaf & Associates, LLC, and the equity of Elemental Kitchen & Laboratories, LLC. As part of the transaction, the Company will also have a right to purchase or acquire cannabis licenses held by Medzen Services, Inc., and R. Greenleaf Organics, Inc., not-for-profit organizations that hold medical cannabis licenses in New Mexico. Total consideration for the acquisition will be $42 million (subject to potential working capital adjustments) with a potential performance-based earnout. The consideration will consist of $25 million in cash payable at closing and $17 million in a 3-year seller note at 5% interest.
LEAF Mobile Inc. (TSX: LEAF) (OTC: LEMLF) said that it will proceed with a name change, which will be accompanied by a trading symbol change to “EAGR” on the TSX, and commence operations under the trade name “East Side Games Group”. In addition, the company announced the appointment of Jason Bailey as Executive Chair of the board of directors and the filing of a preliminary base shelf prospectus.