It’s time for your Daily Hit of cannabis financial news for October 7th, 2020.
On the Site
Comparing Psychedelics Companies, Pathways vs. Mydecine Innovations Group
Psychedelics companies, Pathways and Mydecine Innovations Group, are both companies that produce medicinal mushrooms. Compass is one of the first-to-market groups in the psychedelic world, which has its perks. Those perks include high-profile backers like Peter Thiel, a co-founder of PayPal. Even if Compass is successful in bringing their products to market, there will be many roadblocks standing on their way.
Alternatively, Mydecine Innovations Group is the only company in the world that can legally produce pharmaceutical-grade psilocybin from whole-mushroom extraction. They are also collaborating with the Dutch Royal Army to conduct the world’s first clinical trials exploring psilocybin mushrooms for Post-Traumatic Stress Disorder. Mydecine Innovation Group seems to offer more depth and promise than Compass.
Making Sense of Acreage Holdings Shares
Acreage Holdings, Inc (OTCQX: ACRHF, ACRDF) announced that both its new Class D “floating” shares (OTCQX: ACRDF) and Class E “fixed” shares (OTCQX: ACRHF) will commence trading on the OTCQX Best Market on October 7, 2020, and graduating from Pink Sheet status.
Acreage Holdings and Canopy Growth agreed to an unusual deal. Canopy would buy Acreage when the U.S. federally legalizes cannabis, what they call “the triggering event.” It was recently amended and this resulted in the creation of two new share classes. The original deal allowed Canopy to buy Acreage for a fixed price, however, in this new deal Canopy decided they didn’t want to be locked in. Canopy will now only buy 70% of Acreage at a fixed price, and the remaining 30% will float with the market.
Oklahoma’s Many Dispensaries Create Challenges
Oklahoma has some of the most lenient licensing regulations in the entire country. Unlike many other states, you can open a medical marijuana dispensary like you would virtually any other business, there is not a one-time application period. It also only costs $2500 to get a license, with some other states’ licensing costs reaching to the millions. All of this combined with a seemingly high demand for medical marijuana in the state, and it sounds like a pretty good gig.
However, given the sprawling geography of Oklahoma and a large number of dispensaries, success hinges on an efficient distribution model in order to keep shelves stocked and customers happy.
The Latest Cannabis SPAC is a REIT
Cannabis real estate company, Subversive Real Estate Acquisition REIT LP (NEO: SVX.U) (NEO: SVX.RT.U) (OTCBB: SBVRF), has just become the most recent special purpose acquisitions corporation to begin trading. Their goal is to become a leading real estate capital provider for prominent cannabis operators who own or are seeking to own industrial and retail real estate in high growth US markets. The company just announced that they have entered into binding agreements to acquire real properties in the approximate amount of $97.4 million.
Bluma Wellness Reports Increasing Revenue
Bluma Wellness Inc. (OTC:BMWLF) reported unaudited revenue figures for September, which were higher than its August revenue figures. The company did not release any net income or loss figures. In August, Bluma reported revenue of $1 million. During the month of September, One Plant Florida, the company’s wholly-owned, licensed operating subsidiary, said it averaged sales of 763 ounces of dried medical cannabis flower per retail dispensary, and 758,218 mg of distillate/oil sold per retail dispensary.
In Other News
KushCo Holdings Partners with Project Mission Green
KushCo Holdings, Inc. (OTCQX:KSHB) has proudly announced their partnership with Project Mission Green, a project that advocates on behalf of those who are incarcerated due to nonviolent cannabis offenses.
The organization works on policy reform, as well as rehabilitation and exit plans for those leaving prison. The two will work together to bring awareness to Mission Green, as well as KushCo offering up to 50% of the proceeds from select KushCo products to Mission Green. The partnership reflects KushCo’s dedication to ending the War on Drugs, as well as providing solutions to those who have been hit the hardest by its effects.
“We have always made it a priority to support our community, industry, and people, knowing full well that that there is a tremendous amount of work that still needs to be done to rectify the social injustices that have destroyed the lives of many,” said Nick Kovacevich, KushCo’s Co-founder, Chief Executive Officer and Chairman. “We immediately were drawn and hurt by Weldon’s tragic story of serving 13 years in prison for a low-level, first-time cannabis-related offense. But more than that, we knew that we could make a meaningful and lasting difference to right these wrongs, starting by supporting Mission Green’s unique purpose and team, which is made up of people who have been personally impacted by the justice system and have lived through the issues that came with it. We will not stop in this endeavor until we can ensure the safe release of many more vulnerable, at-risk incarcerated individuals from prison, and we are proud to have Mission Green as our partner in this essential cause.”
Happy Cabbage Analytics Announces $1.5M Series Seed Funding
The cannabis data analytics company, Happy Cabbage, closed their $1.5 million Series Seed funding last week. It was led by early-stage investment firm, Delta Emerald Ventures, including co-investments from cannabis-focused technology partner Silverleaf Venture Partners, private equity firm Yaax Capital, and private equity firm West Creek Investments.
“Happy Cabbage Analytics and Delta Emerald’s mutual focus on data-driven decision making creates the foundation for a long-term partnership,” said Ian Dominguez, Principal of Delta Emerald Ventures. “We believe dispensaries and brands will increasingly demand actionable customer insights, derived from real-time transaction data. Andrew and team bring a level of sophistication that positions them to feed this growing demand.”