psychedelics Archives - Green Market Report

StaffMay 24, 2022
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8min5960

The Daily Hit is a recap of the top cannabis business stories for May 24, 2022.

ON THE SITE

Live Blog from WEF 2022 in Davos Switzerland

Green Market Report editor-in-chief Debra Borchardt blogs live from the Medical Psychedelics Series, at the World Economic Forum being held in Davos Switzerland. Read more here.

MedMen Wins Suit Against Whitestar

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) won its lawsuit against Arizona-based Whitestar Solutions, LLC. According to a statement,  Whitestar filed a lawsuit in March 2020, related to a Membership Interest Purchase and Sale Agreement governing the purchase of EBA Holdings, Inc. dba MedMen Scottsdale. Whitestar alleged fraudulent inducement and breach of contract, among other claims, and sought rescission of the underlying transaction or $60 million in alleged monetary damages. Read more here.

Illegal Cannabis Lounges in NYC

These consumption lounges are operating without licenses and it seems the city and state don’t care. Since the adult-use license program hasn’t been written and approved, these operations are technically violating the law. No law means no violations. So there really isn’t anything law enforcement can do. These lounges range from the first to market Happy Munkey to pop-up neighborhood lounges that are often located next to illicit street sellers. Read more here.

Psychedelics Companies

As the industry matures, there are clear leaders in the pack of psychedelics companies who are positioned to continue driving industry development. Compass Pathways, Atai Life Sciences, and Cybin are generally considered the top three companies in the industry, asserting their dominance in the market, with Field Trip Health and Seelos Therapeutics as psychedelics companies to watch. Read more here.

IN OTHER NEWS

Aleafia Health Inc.

Aleafia Health Inc. (TSX: AH, OTCQX: ALEAF) is pleased to announce that its upward trend in market share, purchase orders, and new SKU launches has continued in 2022’s first four months, following on from the growth in the quarter ended December 31, 2021. The Company has seen strong advances in its largest adult-use categories: flower, pre-rolls and vapes. Read more here.

Curaleaf Holdings, Inc.

Curaleaf Holdings, Inc. (CSE: CURA /OTCQX: CURLF), an international provider of consumer products in cannabis, will begin adult-use sales at its Edgewater Park, New Jersey dispensary on May 25. Located at 4237 US-130, Curaleaf Edgewater Park is now the Company’s second location to sell adult-use cannabis in the Garden State. Read more here.

Rubicon Organics Inc.

Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF), a licensed producer focused on cultivating and selling organic certified, premium cannabis, today reported its financial results for the first quarter ended March 31, 2022. “Rubicon Organics is at a turning point in 2022, with higher yields and increased quality coming from our Delta Facility, whilst remaining cost-conscious we are driving to being profitable in 2022.” Read more here.

RIV Capital Inc., Etain LLC

RIV Capital Inc. (CSE: RIV) (OTC: CNPOF) today announced that it had received notice of an Ontario Superior Court of Justice application by JW Asset Management in connection with the Company’s process regarding its acquisition of ownership and control of Etain, LLC and Etain IP LLC, owners and operators of legally licensed cannabis cultivation and retail dispensaries in the state of New York. JWAM, an investment firm focused on the pharmaceutical and cannabis industries, is the holder of approximately 20.4% of the Company’s issued and outstanding Class A common shares. Read more here.

Pharmagreen Biotech, Inc., Long Valley Farms

Pharmagreen Biotech, Inc., (OTCQB: PHBI), which provides starter plantlets utilizing a proprietary tissue culture process, “Chibafreen,” to licensed cannabis cultivators and CBD/CBG hemp farmers, announced that it has completed another significant milestone in the business development with Long Valley Farms. Pharmagreen has advanced the next tranche of funds, whereby the use of proceeds is for the continuous application process for the LVF micro-business license and its nursery licenses in addition to the current cultivation license. PHBI anticipates having the permits in place within the following few months, depending on the regulator’s schedule. Read more here.

Avicanna Inc.

 Avicanna Inc. (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN) a biopharmaceutical company focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based products is pleased to announce that, through its majority owned Colombian subsidiary, Santa Marta Golden Hemp S.A.S., SMGH has completed its first commercial export of high concentration THC and high concentration CBD full spectrum psychoactive cannabis extracts to Portugal. Read more here.

Eden Empire Inc.

Eden Empire Inc. (CSE: EDEN) announced the signing of a non-binding letter of intent agreement with Plantvida located in Colombia. The agreement dated May 20th, 2022, is made by and between Eden Empire Inc. and Plantvida. The Plantvida SAS project located in north-western Cundinamarca, Colombia, is dedicated to implementing strategic social business, bringing safe, natural and ecologically friendly wellness products to the emerging cannabis business with the goal of providing work and social benefits to the community, such as education, unemployment, health, housing and security. Read more here.

Abaca

Arkansas-based cannabis financial technology firm Abaca has expanded coverage bringing digital-first banking, payment and treasury management solutions to Mississippi’s cannabis industry. Integral in banking 95 percent of Arkansas’s cannabis industry since day one and hundreds of cannabis clients across the country, Abaca is uniquely positioned to support Mississippi. Read more here.


Dave HodesMay 24, 2022
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8min7570

As the industry matures, there are clear leaders in the pack of psychedelics companies who are positioned to continue driving industry development. Compass Pathways, Atai Life Sciences, and Cybin are generally considered the top three companies in the industry, asserting their dominance in the market, with Field Trip Health and Seelos Therapeutics as psychedelics companies to watch.

But there are other companies maybe not so well known that, for now, are under the radar for industry watchers but are still making news—some good, some bad. 

Here’s a list of three winners and three losers of these lesser-known psychedelics companies:

Three winners:

  1. Numinus Wellness, Inc. (TSX: NUMI) (OTC: NUMIF). This Vancouver-based company reported Q1 2022 revenue of $647,915, a 61.9 percent sequential increase from Q4 2021, and a 1,857.6 percent increase compared to $33,098 during the same period last year when Numinus had only one clinic. The company secured several additional strains of psychedelic mushroom species and has already begun genomic analysis of these spore prints for research purposes, according to a press release. In March, the company announced that it had advanced to the next implementation phase in the multi-site open-label extension study of MDMA-assisted psychotherapy for PTSD (MAPPUSX), sponsored by the Multidisciplinary Association for Psychedelic Studies (MAPS).
  2. Small Pharma. London-based Small Pharma initiated a clinical program into DMT-assisted therapy in February 2021. This program includes a Phase I/IIa trial on the company’s lead candidate alongside the development of a pipeline of proprietary preclinical assets. It was the world’s first clinical trial for DMT-assisted therapy in major depressive disorder that showed the consistent quality of psychedelic response in Phase I, according to a press release.
  3. Intelgenx (TSXV: IGX) (OTCQB: IGXT). This Quebec-based company announced in May 2021, that it entered into a second feasibility agreement with Atai Life Sciences for the development of novel formulations of Salvinorin A, a naturally occurring psychedelic compound being developed for treatment-resistant depression and other indications. The first feasibility agreement between the companies was signed in August 2020. That was followed in March 2021 by IntelGenx and Atai announcing a strategic partnership, including a proposed equity investment in IntelGenx by Atai.

Three losers:

  1. MindCure Health, Inc. (CSE: MCUR) (OTCQX: MCURF) (FRA: 6MH): This Vancouver-based psychedelics company announced in March that the additional capital required to execute the company’s business plan is unlikely to be found under the current and foreseeable market conditions, and that “none of the strategic alternatives available to the company necessitated ongoing developmental expenditures.” The company’s board then immediately eliminated all expenditures outside those required to “preserve the value of the company’s assets.” MindCure then initiated a company-wide workforce reduction of all of its C-suite executives and employees, other than its CFO, the vice president of engineering, and certain administrative staff required to “wind-down the company’s operations and for limited care and maintenance of the company.” 
  2. Core One Labs (CSE: COOL), (OTCQB: CLABF): The Vancouver-based company is actively working to investigate investment and potential takeover opportunities by strategic psychedelics or pharmaceutical companies. Its stock price is currently down nearly 99 percent from a year ago. The company began trading on the OTCQB market in April in an effort to get increased corporate visibility in the U.S. marketplace. It also has the potential to significantly enhance its liquidity and broaden access to institutional and retail investors, according to a press release.
  3. Mindset Pharma (CSE: MSET) (FSE: 9DF) (OTCQB: MSSTF): The Toronto-based company is struggling—its stock price is down 50.97 percent today as compared to last year. A letter to shareholders in March brought what sounded like good news from CEO James Lanthier when he touted their partnership with McQuade Center for Strategic Research as a “major milestone” that represents the first partnerships with Big Pharma. But the company is trading at a five-year low of $0.33/share today.

StaffMay 23, 2022
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5min4990

The Daily Hit is a recap of the top cannabis business stories for May 23, 2022.

ON THE SITE

Live Blog from WEF 2022 in Davos Switzerland

Green Market Report editor-in-chief Debra Borchardt blogs live from the Medical Psychedelics Series, at the World Economic Forum being held in Davos Switzerland. Read more here.

Medical Psychedelics Series in Davos

Every year world leaders come together to discuss the global economy at the World Economic Forum’s annual gathering in Davos Switzerland. This small town in the Alps has become the place where the smartest people on the planet come together to discuss solutions to the world’s economic problems and issues. It is not uncommon for various industries to establish a meeting place for people to come together for conversations. Read more here.

Hawthorne and the Hydroponics Market

When we look at what’s happening in the hydroponics market, it’s really not just a Hawthorne issue, it’s across the board. All these companies were saying things had slowed down, but that the market was going to get better at the end of the year. We weren’t getting a whole lot of color on what was happening. Is it that certain states were slow to get going? Is it that there was just truly oversupply? There are so many reasons why this slowdown could have happened. What’s happening here? Read more here.

Decriminalizing Psychedelics

There has been an accelerating movement to decriminalize psychedelics, especially psilocybin, since May 2019, when Denver, Colorado became the first city in the country to decriminalize psilocybin through an initiative, in essence handing a small but significant defeat to the operatives running the War on Drugs. Read more here.

NY Approves 146 Cannabis Farmers

The New York Cannabis Control Board announced on Thursday that an additional 58 farmers for adult-use cannabis have been approved. This brings the total of approved farmers to 146. The NYCCB initially approved 52 farmers in April and then gave the green light to another 36 at the May 5 meeting. People hoping to get these licenses were able to begin applying on March 15 and the opportunity will end on June 30. Read more here.

GMR Women’s Summit (VIDEO)

On April 28, 2022, the Green Market Report hosted its first Women’s Summit in New York City. This successful sold-out event was the first in-person Summit for GMR since before the pandemic. More here.

IN OTHER NEWS

Boston Beer Company

The Boston Beer Company, Inc. (NYSE: SAM), maker of iconic, high-quality brands such as Samuel Adams, Truly Hard Seltzer and Twisted Tea, today announced the launch of TeaPot, a new line of cannabis-infused iced teas. TeaPot is the company’s first infused beverage offering and will be available in select Canadian provinces beginning in July. Read more here.

4Front Ventures Corp.

4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF), a vertically integrated, multi-state cannabis operator and retailer, today announced its financial results for the first quarter ended March 31, 2022. All financial information is presented in U.S. dollars unless otherwise indicated.

“Our business inflected during the first quarter of 2022 as a result of the investments and efficiencies we made over the last 18 months to meet our long-term strategic goals,” said Leo Gontmakher, Chief Executive Officer of 4Front. Read more here.


Dave HodesMay 23, 2022
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There has been an accelerating movement to decriminalize psychedelics, especially psilocybin, since May 2019, when Denver, Colorado became the first city in the country to decriminalize psilocybin through an initiative, in essence handing a small but significant defeat to the operatives running the War on Drugs. 

The War on Drugs has been an ongoing battle since it was begun by former president Richard Nixon in 1971 after various psychedelics (and cannabis) were listed as the worst drugs for human consumption by the Controlled Substance Act (CSA)—which has since been used as a government-approved source to create social injustice involving psychedelics.

Now the movement to decriminalize psychedelics has resulted in a deeper dive into the fabric of society as a movement for not just social justice, but for individual liberties, and even a different way of thinking that psychedelics provides (called cognitive flexibility) which could change how humans interact with each other in a positive way.

The decriminalization movement has continued over the last couple of years, with many resolutions, initiatives, or measures either directly or indirectly addressing the War on Drugs as their decriminalization rationale: Oakland in June, 2019, with a resolution; Santa Cruz in January, 2020 with a resolution; Ann Arbor, Michigan in September, 2020 with Policy 2021-06; Washington D.C. in November 2020 with Initiative 81; Somerville, Massachusetts in January, 2021 with a resolution; Cambridge, Massachusetts in February, 2021 with a resolution, which cited decriminalization as an effort to defeat the War on Drugs; Northhampton, Massachusetts in March, 2021 with Resolution R21.207; East Hampton, Massachusetts in October, 2021 with a resolution; Seattle in October, 2021 with Resolution 32021; Arcata, California in October, 2021 with Resolution 212-17; Detroit in November, 2021 with Proposal E; and Port Townsend, Washington in December, 2021 with a resolution, also referencing their decriminalization was an effort to end elements of the War on Drugs. 

The Port of Townsend included statements in its resolution that effectively decriminalizing entheogens (psilcocybin) “aligns with local values of personal freedom, connection to the natural world, social justice and reform of harmful societal structures/practices, seeking creative solutions to longstanding community challenges, progressive free-thinking, and alternative living (including in the realms of education, medicine, therapy, and healing).”

Efforts to decriminalize continue in New York, Vermont, California, Utah, Missouri, Connecticut, New Jersey, Texas, Florida and Hawaii.

Oregon went a step beyond decriminalization by legalizing psilocybin for therapeutic use with Measure 109 on November 4, 2020. Creating rules and reviewing licenses for legalized psilocybin in Oregon is expected to take awhile.

While the immediate effects of decriminalization so far have been to encourage more cities and states to examine and/or enact decriminalization, there is more going on here. As some of the city and state decriminalization resolutions have demonstrated, decriminalization has become a megaphone for advocates working to finally defeat the War on Drugs.

Decriminalization is a step forward from a policy standpoint, according to an article in the Lewis and Clark Review by Dustin Marlan, the assistant professor of law at the University of Massachusetts School of Law. It eliminates the “virtual or total loss of liberty imposed” under CSA prohibition. Decriminalization cuts down on arrests, imprisonments, and wasteful law enforcement practices, and “thus represents a realistic and pragmatic step toward ending the prohibition on psychedelics.”

Marlan wrote that the effects of psychedelic drugs could go beyond the relatively small and inconsistent effects of pharmaceuticals in healthy subjects, because they not only produce improvements in mood, but may also give access to states of consciousness and insights of great significance even after a single dose. “In doing so, psychedelic drugs may cater to a human need for meaning, connectedness and purpose; needs which it may be argued are widely overlooked in Western, individualistic cultures,” he wrote. “Indeed, psychedelics operate differently from modern medicine in that they provide users with powerful mystical or psychological experiences which can act as catalysts for changes in thought patterns and behavior.”

Charlotte Walsh, a legal academic at the University of Leicester School of Law, in discussing psychedelic law reform and reimagining psychedelic drug policy in the United Kingdom through a human rights prism, believes that “individuals should have the right to autonomous self-determination over their own brain chemistry, a right that is currently infringed by the prohibition of psychedelics.”

She wrote that, beyond the courts, it is recommended that a liberal, rights-based approach also inform psychedelic drug policy activism, moving past the current predominant focus on harm reduction, towards a prioritization of benefit maximization. “How this might translate in to a different regulatory model for psychedelic drugs, a third way, distinct from the traditional criminal and medical systems of control, is (under discussion).

“Whether or not it is believed that people should have to justify their psychedelic use on any grounds is bound up with one’s view of the proper relationship between the individual and the state, with whether or not it is believed that the latter has any business concerning itself with which substances the former choose to ingest,” Walsh wrote.

The power of psychedelics, and therefore the promise of decriminalization, is that it literally changes how people think. It changes lives in a powerful, profound way. And, hopefully, the good outcomes being reported in psychedelic clinical trials will change what more lawmakers think about it.

The War on Drugs is not over by a long shot. In fact, it continues today, as demonstrated by the recent incident with the mostly black Delaware University women’s lacrosse team on April 20th in Georgia. The team bus was pulled over by a group of white highway patrol officers for a traffic stop that quickly turned into a drug search of all of the team member’s luggage. A narcotics dog was brought in. No tickets were issued, no one was arrested. But the incident reeked of a war-on-drugs, guilty-until-proven-innocent profile incident. 

In a joint statement, Delaware U.S. Senators Tom Carper (D-Del) and Chris Coons (D-Del), along with U.S. Representative Lisa Blunt Rochester (D) termed the situation “deeply disturbing.” Delaware Attorney General Kathy Jennings called on the justice department to investigate.

But there is also a negative public sentiment about psychedelics to deal with, based on the long-standing stigma of psychedelics that the War on Drugs created and continues to reinforce. According to a Hill/HarrisX poll conducted in May, 2021, 65 percent of voters say psychedelic substances “do not have medical use.” 

But it’s a different story if you suffer from some form of mental illness. A more recent Harris Poll reported in January, 2022, that nearly two thirds of Americans who suffer from anxiety/depression/PTSD (65%) believe that psychedelic medicine (such as ketamine, psilocybin and MDMA) should be made available to patients with treatment-resistant anxiety, depression or PTSD.

Decriminalizing psychedelics has become the driving force to address the nearly one in five U.S. adults who live with a mental illness—52.9 million people in 2020. Experts predict even more mental illness cases to come as a result of the pandemic. If there was ever a moment in time for a new, better way to treat mental health, it’s now. All that remains to be done is finding the legal route to build acceptance of psychedelics-assisted mental health therapy, through or around whatever obstacles still stand in the way.


StaffMay 23, 2022
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Every year world leaders come together to discuss the global economy at the World Economic Forum’s annual gathering in Davos Switzerland. This small town in the Alps has become the place where the smartest people on the planet come together to discuss solutions to the world’s economic problems and issues. It is not uncommon for various industries to establish a meeting place for people to come together for conversations.

For example, in 2019, the Canada Cannabis House hosted a three-day event for people in the cannabis industry to introduce themselves and talk about business with people who were unfamiliar with the industry. This year, Davos is also hosting events around blockchain and cryptocurrency cementing its reputation as a place that encourages forward-thinking outlooks.  

In addition to standard topics around climate change and the economy, healthcare is a frequent subject, This year there is a big focus on psychedelic plant medicine and how numerous studies have shown it could be a game-changer for mental health treatments.

Inaugural Event

One thing that is new this year for Davos is that the main event, the World Economic Forum, was pushed back from its traditional January date to May due to the pandemic. Another new feature will be the inaugural Medical Psychedelic Series which hopes to help shape the future of mental health. The inaugural week-long series will take place from May 21-26, 2022, at the Medical Psychedelics House of Davos located on the main Promenade. It will feature the world’s most prominent psychedelic industry leaders, drug development experts, clinicians, nonprofit organizations, advocates, and influencers. The majority of conversations at the Medical Psychedelics House of Davos will focus on FDA approval for these compounds and their associated therapeutic potential, policy, safety and efficacy, biocultural preservation, drug development pipelines, and patient access.

“This is a one-of-a-kind opportunity for the medical psychedelics ecosystem to share the breakthroughs in psychedelic therapeutics for the first time with world leaders,” says Marik Hazan, CEO of Energia Holdings Incorporated.

“We want to spark conversations about the high unmet need in mental health, the future of FDA approved psychedelic-assisted therapy, provide a platform for establishing meaningful relationships and partnerships, and build trust with the global community,” added Maria Velkova, managing partner of Tabula Rasa Ventures.

Hosted by Energia Holdings Incorporated, the series includes educational talks and panels featuring some of the best-known figures in the psychedelic space, including acclaimed author and psychedelic medicine advocate Deepak Chopra; TV personality and advocate Jason Silva; countess of Wemyss and March, and nonprofit leader Amanda Fielding; psychedelic researcher David Nichols, Ph.D.; Endowed Professor & Vice Chair of Psychiatry, Icahn School of Medicine at Mount Sinai Rachel Yehuda, Ph.D. and many more.

As the COVID-19 pandemic laid bare, mental health is one of the largest underserved areas in the medical community. With few solutions in sight, there is a growing body of evidence that suggests that psychedelic-assisted therapy could provide a breakthrough in treating countless mental health ailments, such as depression, substance abuse disorders, and PTSD.

At Davos 2022, This Medical Psychedelics Series Will Be the Global Platform for Where Select Attendees Will:

  • Learn from leading experts in the medical psychedelics industry who are setting the narrative for both mental health and psychedelic therapeutics on the global stage in front of world leaders.

  • Experience sessions curated to engage all six senses and give an unforgettable heart-opening, mind-stimulating, experience of human connection through sound meditation, breathwork, and conscious leadership workshops.

  • Connect with psychedelic entrepreneurs, researchers, policy makers, and nonprofit leaders and some of the world’s most innovative psychedelic organizations like the Multidisciplinary Association for Psychedelic Studies (MAPS), Maya Health, Compass Pathways, Imperial College London, and many others.


StaffMay 19, 2022
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5min6840

The Daily Hit is a recap of the top cannabis business stories for May 19, 2022.

ON THE SITE

Harborside Owns Urbn Leaf Seaside Store

Harborside Inc. (CSE: HBOR) (OTCQX: HBORF) now fully owns the Seaside, California store also known as Urbn Leaf. Harborside had initially purchased a 50% ownership in the dispensary, but with the new transaction, it will own all of the issued and outstanding securities of 680 Broadway Master, LLC which owns the Seaside Store, bringing the company’s interest in the Seaside Store to 100%. Read more here.

Psychedelics and Institutional Investors

When looking at the data coming out of psychedelics research, there is tantalizing evidence that the promise of psychedelics is becoming more of a reality every day. Companies and organizations such as Compass Pathways NASDAQ: (CMPS) the Multidisciplinary Association for Psychedelic Studies (MAPS) and Awakn Life Sciences are either planning or working on phase 3 clinical trials, one of the last steps before U.S. Food and Drug Administration (FDA) approval. Read more here.

IN OTHER NEWS

Medical Marijuana, Inc.

Medical Marijuana, Inc. (OTC: MJNA), a publicly traded cannabis company in the United States, announced today its financial results for the quarter ending March 31, 2022, and provided an overview of recent operational highlights. Generated $7.8 million in net revenue in the first quarter of 2022, a 24% increase when compared to the previous quarter. Read more here.

New Frontier Partners with Treez

New Frontier Data, a data, analytics and technology firm specializing in the global cannabis industry, announces a broad, sophisticated data partnership with Treez,  an enterprise cloud commerce platform that streamlines retail and supply chain operations within the cannabis market. The partnership provides new solutions designed to bring speed, accuracy and transparency to cannabis retail, brand and product performance. Read more here.

ADC Partners with Alt Magic

ADC, a cannabis distribution company, announced a partnership with Alt Magic to present the first ever WebXR cannabis store. The store allows users to talk with like-minded people in the Metaverse using their VR headset even if they don’t have a VR headset they can use their smartphone, tablet or computer to enjoy the WebXR experience. It’s the first time that people on all major devices will be able to enter a cannabis store, pick up products, review ingredients and make purchases from the Metaverse. Read more here.

Trulieve Cannabis Corp.

Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF), a cannabis company in the United States, today announced the grand opening of its third and fourth medical dispensaries in West Virginia. Located at 4701 MacCorkle Ave. SW in South Charleston and 152 Park Shopping Center in Parkersburg, both dispensaries will open at 10 a.m. on Saturday, May 21, 2022. Read more here.

Isracann Biosciences

Isracann Biosciences Inc. (CSE: IPOT) (XFRA: A2PT0E) (OTC: ISCNF) a multi-faceted organization with a natural health medicine division in Canada and holdings in Israel, is pleased to announce that its wholly owned subsidiary Praesidio Health has completed the natural product number (NPN) submissions to Health Canada for its first formulations. Read more here.

Indiva Limited

Indiva Limited (TSXV: NDVA) (OTCQX: NDVAF), a Canadian producer of cannabis edibles and other cannabis products, announced its financial and operating results for the first fiscal quarter ended March 31, 2022. “We are pleased to report very strong year-over-year revenue growth in the first quarter of 2022, and continued gross margin improvement compared to fiscal 2021. According to data from Hifyre Inc., Indiva continues as the dominant national market share leader in edibles,” said Niel Marotta, President and Chief Executive Officer of Indiva. Read more here.


Dave HodesMay 19, 2022
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When looking at the data coming out of psychedelics research, there is tantalizing evidence that the promise of psychedelics is becoming more of a reality every day. 

Companies and organizations such as Compass Pathways NASDAQ: (CMPS) the Multidisciplinary Association for Psychedelic Studies (MAPS) and Awakn Life Sciences are either planning or working on phase 3 clinical trials, one of the last steps before U.S. Food and Drug Administration (FDA) approval.

And these are not just clinical trials with positive outcomes that last for a few weeks. Studies of psilocybin, ayahuasca and lysergic acid diethylamide (LSD) on psychiatric diseases and addictions found a quick response after psychedelic administration that lasted for several months, even after a single dose. 

In light of this seemingly diminishing risk of investing in a psychedelics drug, it’s no wonder that institutional investors are taking a closer look as the industry matures into mainstream investor territory with more psychedelics companies going public. 

Going public can help make a company more attractive to an institutional investor because it helps generate capital for the company to expand, and requires the company to provide detailed disclosures about their operations.

There are now 48 publicly traded psychedelics companies: most are on the Canadian Securities Exchange (CSE); eight on NASDAQ; and one, (Cybin, Inc.), is traded on the New York Stock Exchange. 

Cybin Inc. has 55 institutional owners and shareholders, holding a total of 16,411,827 shares. 

Atai Life Sciences has 105 institutional investors. GH Research has 36 institutional investors who own almost all of the available stock (61.72%), with six new institutional investors all coming three days after the company’s 2021 full-year report to investors in March 2022, where company executives showed a significant cash position of $276.8 million to fund operations into 2025.

In fact, this year’s first-quarter reporting on the results of 2021 for various psychedelics companies was the catalyst for serious institutional investment movement. One example: Of the 205 institutional investors listed for MindMed, 31 are new investors who jumped in at the end of March, 2022. Those included heavy hitters like Barclays and Oppenheimer and Company.

Huge institutional investors like BlackRock, the world’s strongest asset management brand according to the 2021 Fund Brand 50 study, an annual dataset from Broadridge Financial Solutions, are a big part of the investment picture in psychedelics. BlackRock holds shares in MindMed, Cybin, Atai, Compass Pathways, Seelos Therapeutics, and GH Research. All are listed as stocks to watch by U.S. News

How can an institutional investor choose a psychedelics company to invest in? A securities lawyer told the Canadian Investment Review that he advises that psychedelics institutional investors focus on identifying sophisticated management teams inside companies who have a deep understanding of the regulatory framework, and an ability to map out a path through drug development to commercialization. He added that any potential investment should also be backed by strong science and medical advisors.

Psychedelics investment opportunities are broadening.

The psychedelic sector includes the full biopharmaceutical and healthcare value chain. According to a global business strategy company, LEK, while investment has traditionally focused on biopharmaceutical research and development, there is now an increasing trend to distribute funding across the value chain more broadly. 

Some psychedelics companies primarily focused on development are using this strategy by establishing clinic networks and digital platforms to create the infrastructure for clinical trials they need, and the delivery of psychedelic-assisted psychotherapies. 

“This approach has two immediate advantages,” according to an LEK executive insight finding. “Firstly, it generates short-term revenue through other applications for these assets. Secondly, it allows companies and investors to reduce the level of risk inherent in developing new drug therapies.”

That’s just the sort of reassurance that institutional investors need today for getting involved in an emerging, risky industry dealing with drug discovery and development that has to deal with more uncertainty than other healthcare-related companies. 

Investors today in general are bracing for increased volatility, higher inflation, and upward pressure on interest rates. These conditions reflect a fundamental change from what investors working with institutions have experienced over the past several decades, according to a 2022 global investment study by Nuveen, a global investment management company. “As plan sponsors and asset allocators, we’re tasked with achieving these lofty return expectations, north of 7%, all within the parameters of prudent risk management,” a U.S. public pension investment officer reported in the study. “Those two things are becoming incongruent. … It’s challenging conventional wisdom, for sure.”

Still.. psychedelics are looking more and more like a sure thing for institutional investors today.

Ben Bei, director and product strategist on the Global Emerging Markets Equities Team within BlackRock’s Active Equity Group, wrote in an investment insight article that, compared to other sectors, demand for healthcare is resilient and less impacted by economic swings. “Historically, the sector has been the strongest performer in late cycle and recessionary periods, suggesting this may be an area investors should look into amid uncertainty over the broader macroeconomic outlook,” Bei wrote. “This sector is also a greenhouse  of innovation: an array of R&D companies constantly delivers new products to fulfil unmet demand, which, we believe, act as a long-term driver for the sector’s growth.”


StaffMay 18, 2022
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9min7700

The Daily Hit is a recap of the top cannabis business stories for May 18, 2022.

ON THE SITE

Canopy Growth Acquires Jetty Extracts for $69 Million

Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) is buying Lemurian, Inc. better known as Jetty Extracts, a California-based producer of high-quality cannabis extracts and pioneer of clean vape technology, contingent upon federal permissibility of THC in the U.S. or earlier at Canopy Growth’s election, up to 100% of the outstanding capital stock of Jetty. Read more here.

Bright Green Listed on NASDAQ

Bright Green (NASDAQ: BGXX) is a cannabis company with no revenue that just began trading on the NASDAQ, despite the exchange’s insistence that it won’t list U.S. cannabis companies due to the product being federally illegal. Bright Green plans to produce cannabis for research purposes with the Drug Enforcement Agency‘s (DEA) blessing, which seems to be the reason why the NASDAQ has allowed the company to trade. It would be considered federally legal cannabis. The stock is trading at $26. Read more here.

Cresco Revenues Fall

Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF)  released its financial results for the three months ended March 31, 2022, as revenue fell from the fourth quarter’s $217 million to the first quarter’s $214 million. Cresco Labs did note that the revenue increased 20% over last year’s $178 million for the same time period. This also beat the Yahoo Finance average analyst estimate for sales of $213 million. Read more here.

GMR Women’s Leadership Awards: Ralina Shaw

Ralina is the founder of House of Tyne and on the leadership team of 4thMVMT,  a leading social impact organization based in Los Angeles with a mission to support those who have been adversely affected by onerous Cannabis laws. They do this by educating, empowering, and training those adversely affected to run/operate their BIPOC-led “Sixty Four & Hope” retail dispensaries in Los Angeles (2 recently opened locations and counting). Read more here.

 Psychedelics on the World Stage

Every year world leaders come together to discuss the global economy at the World Economic Forum’s annual gathering in Davos Switzerland. This small town in the Alps has become the place where the smartest people on the planet come together to discuss solutions to the world’s economic problems and issues. It is not uncommon for various industries to establish a meeting place for people to come together for conversations. In 2019, the Canada Cannabis House hosted a three-day event for people in the cannabis industry to introduce themselves and talk about business with people who were unfamiliar with the industry. Read more here.

 Women Creating Cannabis Brands (VIDEO)

On April 28, 2022, the Green Market Report hosted its first Women’s Summit in New York City. This panel was titled “Women Creating Cannabis Brands.” These savvy and accomplished women have created truly unique and original products and companies. Their products are unlike others in their categories. This panel explores what it takes to create a company and product that stands out in a sea of sameness. Read more here.

IN OTHER NEWS

Ayr Wellness Inc.

Ayr Wellness Inc. (CSE: AYR.A, OTCQX: AYRWF), a leading vertically integrated U.S. multi-state cannabis operator (MSO), today announced that it has launched first sales from its Phoenix, Arizona cultivation facility. Concurrently, the company announced the launch of its national pre-roll brand, STiX Pre-Roll Co. in Arizona. Read more here.

American Green, Inc.

American Green, Inc. (ERBB:OTC) has purchased the 40,000 square foot building known as American Green’s “Cypress Chill” cannabis facility located at 2325 W. Cypress St. Phoenix, AZ. 85009.  The building sits on a 62,000 square foot site and was previously leased by ERBB in August 2021 with an option to buy. American Green has exercised its option to buy the building and now owns it. The purchase price was set at $3.75 million at the time of the signing of the lease last year. Recently, the building was professionally appraised for $5.3 million, giving American Green $1.55 million of additional equity, at the time of closing. When added to the down payment of $1.123 million, there is now a total of $2.673 million of equity in the new “Cypress Chill” cannabis grow building. Read more here.

MariMed Inc.

MariMed Inc. (OTCQX: MRMD), a leading multi-state cannabis operator focused on improving lives every day, announced today it had been awarded a provisional dispensary license by the Ohio Board of Pharmacy. MariMed won this license in the Ohio lottery process. The license allows the Company to develop a medical dispensary in Tiffin, Ohio, located south of Toledo and home to the University of Bucharest and Tiffin University. Read more here.

Ascend Wellness Holdings, Inc.

Ascend Wellness Holdings, Inc. (CSE: AAWH.U) (OTCQX: AAWH), a multi-state, vertically integrated cannabis operator focused on bettering lives through cannabis, is pleased to announce that it has closed on $36.5M of additional funding under the increase option of its existing term loan credit facility. In August 2021, the Company announced it had closed on a US$210 million Senior Secured Term Loan credit facility with Seaport Global Securities LLC as lead manager.

Steep Hill Michigan

Steep Hill is pleased to announce that the Company’s licensee partner, Steep Hill Michigan, a Cannabis Regulatory Agency (CRA) licensed medical and adult-use/recreational cannabis safety compliance testing facility, has earned ISO/IEC 17025:2017 accreditation, an International Standard recognized by governments and industry participants as the standard of excellence for the technical requirements and operational competence of a quality laboratory management system. The accreditation was validated by Perry Johnson Laboratory Accreditation (PJLA), the Michigan-based world-wide leader in ISO assessment and validation. Read more here.

First Columbia Gold Corp., Green Diamond Farm

First Columbia Gold Corp (FCGD), operating as FineCannabisGoods.com, is pleased to announce an agreement to acquire Green Diamond Farms LLC of southwest Michigan. Green Diamond Farms is currently working on licensing and setting up growing facilities in different areas of the state where permitted in partnership with FCGD. Each location should gross up to $2.5 mil year 1 and $6 mil by year 2. Read more here.


Dave HodesMay 9, 2022
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The financial players in the disruptive psychedelics industry have become part of a jigsaw hodge-podge of new and strategic investors each taking a risky shot in an industry that is slowly attracting more millionaires. 

They want to get their piece of the action. But with an emerging industry like psychedelics and all the unknowns involved in it, they are essentially banking on the financing moves of other big-money movers and shakers in the psychedelics space for guidance.

Some are sensing a big-time, long-term winner in the making if they can just manage to wait out a company’s startup financial pain management. Others are content to just watch the ups and downs play out—for now. 

There are signs that the industry is about to make the kind of real progress that even conservative investors like to hear. The clinical work of psychedelic companies is getting tantalizingly closer to creating an FDA-approved psychedelic drug that would be a truly original treatment for mental health, currently led by developments in psilocybin and MDMA.

And some of the bigger investors have a personal reason for taking their own leap of faith with their fortunes, adding an interesting wrinkle to their investing motivation.

Psychedelic Billionaires

Over the last couple of years, the psychedelics industry has seen a few billionaires take the plunge, including German billionaire Peter Thiel, co-founder of PayPal and an early investor in Facebook, currently enjoying a net worth of $7.9 billion, down from a 2021 high of over $9 billion. He has also done venture stage investments in both SpaceX and LinkedIn. 

Peter Theil

Thiel invested $11.9 million in Atai Life Sciences (NASDAQ: ATAI), which was founded by billionaire Christian Angermayer in 2018, who himself got into psychedelics after an illuminating personal experience with psilocybin

Thiel and Angermayer watched their Atai Life Sciences stock surge 40 percent in its NASDAQ debut in June 2021, just the third psychedelics company to go public in the U.S., raising $225 million from selling 15 million shares. Angermayer also owns about a quarter of Compass Pathways (NASDAQ: CMPS), one of the earliest stars of the psychedelics industry that is gaining even more momentum after completing a phase IIb clinical trial of psilocybin therapy for treatment-resistant depression in 22 sites across Europe and North America. 

It was the largest randomized, controlled, double-blind psilocybin therapy clinical trial ever conducted.

Angermayer has become a sort of investor guru for psychedelics. He appears to ostensibly be on more of a personal mission to cure the ills of mankind than just a billionaire playboy looking for cool investments. He always discusses the huge market for any psychedelic drug that can successfully treat depression, often citing the statistic from the World Health Organization that there are 300 million people suffering from depression worldwide.

That’s just the sort of help-for-all-mankind bandwagon that attracts other big-money players who are checking out the market. Just two years ago, a group of Silicon Valley and Wall Street executives reportedly raised $30 million to speed the development of MDMA to treat trauma patients, including Genevieve Jurvetson and her husband Steven, who co-founded the automation startup Fetcher. They donated $2.6 million. 

Joby Pritzker

Joby Pritzker, the Silicon Valley investor whose private equity company has holdings in Tesla, Uber, and SpaceX, donated over $1 million and is on the board of the Multidisciplinary Association for Psychedelic Studies (MAPS). 

Another Silicon Valley superstar, billionaire Bob Parsons, founder of the web-hosting company GoDaddy, gave $2 million.

Parsons also has a personal connection to psychedelics. He is a Vietnam vet suffering from PTSD who began exploring psychedelic therapy as an option to manage his trauma.

Parsons later went even further with his psychedelics investments. He gave $5 million to the Mount Sinai Health System in September to build and support training and education for therapists using MDMA-assisted psychotherapy and other psychedelic medicine approaches. The multiyear grant will support the Center for Psychedelic Psychotherapy and Trauma Research in the Department of Psychiatry at the Icahn School of Medicine at Mount Sinai.

R&D Investment

But it’s not always the big money guys playing, because the industry is seeing record-setting benchmarks in the industry coming from other investor sources. For example, in 2021, investments in psychedelics companies grew to $595 million across 45 deals, setting a new annual record, accelerated by such drivers as the overall declines in return on investment for drug research and development pushing pharmaceutical companies to explore alternative product types like psychedelics. 

But it’s all a bit of a sticky wicket. While all this good news is playing out, the leading psychedelics companies are still experiencing financial loses. For example, one of the top five psychedelics companies, MindMed, listed a net loss of $93 million in 2021in their annual report, adding that “considerable effort was directed towards employing a successful financing strategy.”

But still: The millionaire—and billionaire—drumbeat for psychedelics gets louder every year. In fact, the world’s richest person, super billionaire Elon Musk (current net worth is $268 billion) appears to be hovering around the psychedelics industry, tweeting in April that he “talked to many more people who were helped by psychedelics & ketamine than SSRIs & amphetamines.” Is he next to jump in? Or is this psychedelics bonanza slowing down for the time being? As with many things in the disruptive psychedelics industry, all that can be done is to wait and see.


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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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