The Daily Hit is a recap of the top cannabis business stories for June 1, 2022.
ON THE SITE
Wesana Said Could Sell Assets, Focus on Studies
Wesana Health Holdings Inc. (CSE: WESA; OTCQB: WSNAF) announced its first-quarter 2022 financial results with no revenues to report. Wesana had a net loss of $4.8 million in the quarter. It has a cash balance of $3.1 million. Wesana said it is reviewing strategic alternatives including, but not limited to, a sale of all the assets under the care delivery division. Read more here.
Novamind Reports Earnings Ahead of Acquisition
Novamind Inc. (CSE: NM)(OTCQB: NVMDF) reported its financial results for the fiscal third quarter ending March 31, 2022. Novamind reported total revenue of $3,227,352, an increase of 32% over the previous quarter. The company had a net loss of $2.4 million. Numinus Wellness will be buying Novamind in an all-share transaction. Read more here.
The Cannabis Crypto Connection
The cannabis industry has tried valiantly to incorporate crypto into its business with little success. It was seen as a great way to work around a banking system that was hostile toward the cannabis industry. However, the uptake has been slow and uneven results have caused many to stay on the sidelines in wait and see mode. That hasn’t kept some in the industry though from jumping in with both feet. Read more here.
Big Pharma and Psychedelics
There are 20,000 drugs in active development globally. More novel drugs made their market debut in 2020 than in any other year, with 82 released onto the market in total, which is way ahead of the previous record of 68 in 2018. The world pharmaceutical market was worth an estimated $1.2 trillion in 2020 and is one of the most profitable industries in the world. Read more here.
IN OTHER NEWS
Aurora Cannabis Inc.
Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), the Canadian cannabis company, has announced today the closing of its previously announced bought deal offering of units of the company for gross proceeds of approximately US$172.5 million. The company sold approximately 70.4 million units at a price of US$2.45 per unit, including approximately 9.2 million units sold pursuant to the exercise in full of the underwriters’ over-allotment option. Read more here.
Cannara Biotech Inc.
Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB), a vertically integrated producer of cannabis and derivative products, announced today that it has closed on a $50M credit facility led by BMO Commercial Banking. The credit facility, effective May 31, 2022, includes a three-year term loan for $45 million with an accordion for up to an additional $10 million and a $5 million line of credit. Additional favorable terms attached to the credit facility include a declining interest rate over time as the company hits certain covenant thresholds and the ability to repay the facility without penalty at any time. Read more here.
Verano Holdings Corp., The Weldon Project’s Mission Green
Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF), a leading multi-state cannabis company, today announced the launch of an exclusive partnership in support of The Weldon Project’s Mission Green, the non-profit organization’s initiative that promotes clemency for cannabis-related offenses. Through this partnership, Verano will initiate a nationwide fundraising campaign on June 3 that will remain active throughout 2022, available exclusively at the Company’s retail locations. Read more here.
TRC Healthcare, University of Colorado Denver
TRC Healthcare (TRC) has launched a new training program to help pharmacists deliver better healthcare for patients who use cannabis products. The online program, known as RxAdvanced: Guide to Cannabis, gives pharmacists a foundational knowledge of cannabis that strengthens their role as stewards of public health. “As more states legalize cannabis products, either for medical use, recreational use, or both, we have seen a need within the healthcare industry for credible information that can help clinicians guide patients toward safe and effective cannabis use,” says Wes Crews, Chief Executive of TRC Healthcare. Read more here.
High Tide Inc., Livonit Foods Inc.
High Tide Inc. (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA), a retail-focused cannabis company, announced that further to its press release dated March 30, 2022, the Company has completed its acquisition of 100% of the equity interest of Livonit Foods Inc. operating as Bud Heaven, which operates two retail cannabis stores in Ontario for CAD$2.8 million. Read more here.
Schwazze, Urban Health & Wellness, Inc.
Schwazze, (OTCQX: SHWZ) (NEO: SHWZ), announced today that it closed the transaction to acquire substantially all the assets of Urban Health & Wellness, Inc. The transaction includes the adult use Urban Dispensary, located at West 38th Avenue and Clay Street, in Denver’s Highlands neighborhood as well as a 7,200 square foot indoor cultivation facility (2,700 square feet of canopy) located in Denver, Colorado. This purchase continues Schwazze’s expansion in Colorado and brings the company’s total number of Colorado dispensaries to 23 and grow facilities to four. Read more here.
UC Asset LP
UC Asset LP (OTCQX: UCASU) announced today the company is aggressively seeking cannabis property opportunities in the state of New York, by partnering with licensed local growers, vendors and other cannabis license holders. In the fourth quarter of 2021, UCASU rolled out a new business investment strategy highlighting interest in retaining cannabis properties to duplicate the success of other public companies, such as Power REIT (NYSE: PW). Read more here.
Entourage Health Corp.
Entourage Health Corp. (TSX-V:ENTG) (OTCQX:ETRGF) (FSE:4WE), a Canadian producer and distributor of cannabis products confirmed today it has signed an additional amendment to its senior secured credit facility entered into on March 29. The latest amendments to the credit facility modify the terms under which Entourage secured up to $39 million of debt financing over a three-year term ending in 2022. Read more here.