It’s time for your Daily Hit of cannabis financial news for March 8, 2021
Happy International Women’s Day.
On The Site
Despite a solid outlook for the Canadian cannabis market and producers who have raised almost $1 billion over the past few months, Stifel analysts delivered a sobering report on the industry. First, the good prognostications got the Canadian cannabis market. Stifel worked with Headset data to create its latest report. Headset covers roughly 65% of the Canadian sales market and is a good indicator of the overall health of the industry. Sales in January 2021 were up 106% over 2020, but down 1% from December 2020. This is leading the analysts to forecast that the market will reach over C$4 billion in 2021 sales. The analysts also estimate sales in the adult-use market will double over the next two years reaching C$6 billion before slowing to a high-teens rate of growth.
California-based Harborside Inc. (OTC: HBORF) has completed a $5 million strategic investment in LPF JV, LLC otherwise known as Loudpack, through a 15%, secured convertible note due December 2022. Loudpack is a California-based cannabis company with a broad cultivation, manufacturing, processing, and distribution footprint. Loudpack’s brands include Kingpen, Loudpack, Dimebag, and Smokiez. In addition to the funding, Harborside said it has engaged Loudpack to provide services aimed at identifying production efficiencies as well as improving harvest yields at the company’s cultivation facility located in Salinas, California. Loudpack will also be providing contract manufacturing services for a suite of Harborside branded products and Harborside will be increasing the availability of shelf space for Loudpack branded products at the company’s retail stores.
Psychedelic medicine biotech company Mind Medicine (MindMed) Inc. (OTCQB: MMEDF) has entered into an agreement with Canaccord Genuity Corp. to purchase for resale, on a bought deal private placement basis, an aggregate of 6,000,000 units of the Company at a price of C$3.25 per Unit for aggregate gross proceeds to the company of C$19,500,000 or roughly $15.4 million by today’s currency exchange. MindMed said that it is expected that the units will be primarily sold to one large institutional investor.
MindMed said the net proceeds will be used for further investment in Project Lucy (experiential LSD), the Microdose LSD Program, and Project Albert, which is now integrating MindMed’s most recent technology acquisition HealthMode to build a comprehensive mental health platform to deploy psychedelics medicines, and for general working capital purposes. The closing is expected to occur on or about March 9, 2021.
In Other News
Cybin Inc. (OTCQB:CLXPF) announced that its shares began trading on the OTCQB Venture Market on March 8, 2021, under the symbol “CLXPF.”