Here’s What You Missed in Cannabis, Psychedelics This Week

In this week’s “Rising High,” The Fly’s recurring series focused on cannabis and psychedelic stock news, The Fly looks back on a potential legalization bill, a facility expansion and an acquisition.

REPUBLICAN REP. TO INTRODUCE CANNABIS LEGALIZATION BILL: Republican Representative David Joyce, who is a co-chair of the Congressional Cannabis Caucus, says he will file a bill “imminently” that, if passed, would amend the Controlled Substances Act to remove state-legal marijuana as a Schedule I drug, the same classification as heroin, Forbes’ Will Yakowicz reported Wednesday. Marijuana grown and produced outside of the licensed market would remain illegal at the federal level, allowing states that do not want to legalize pot to keep prohibition in place, the author noted. The legislation has not yet been filed, but the draft is being called the “STATES 2.0 Act”, a “modernized” version of the STATES Act Joyce introduced in 2019. (ACRHF) announced the completion of its infrastructure expansion at its facility in Egg Harbor Township, New Jersey. The company said the multi-faceted cultivation and processing upgrades support the ongoing demand for products at both the retail and wholesale levels, as well as the broadening of the company’s brand and product offerings in the burgeoning New Jersey market. Additionally, with the expansion, the company expects to increase headcount by approximately 15% at the facility as of 1Q24. “We are absolutely thrilled to have completed the expansion of our Egg Harbor Township facility,” said Sharon Ali, EVP, Mid-Atlantic Region. “New Jersey is one of our cornerstone markets, where we continue to bolster our position as a leading operator in the state. These enhancements are timely, as the state continues to present a tremendous opportunity for the expansion of our in-house brand product suite. Demand for our wholesale and retail offerings in New Jersey has remained persistent, as demonstrated by our record month of wholesale sales in August. This new capacity enables us to produce a larger and more diversified offering for two of the most popular segments in the market – premium flower and edibles – as well as top-selling concentrates for Superflux, which are anticipated to reach consumers by year-end. With our expanded canopy, new genetics, and a wider breadth of extraction and processing capabilities, we will increase our competitive position in the state.” (read more)

BZAM TO ACQUIRE FINAL BELL CANADA: BZAM (BZAMF) announced Wednesday it has entered into a definitive share exchange agreement to acquire Final Bell Canada from Final Bell Holdings International. Under the terms of the agreement, FBHI, the sole shareholder of FBC, will receive 90,000,000 common shares of BZAM at a deemed price of C$0.15 per share, representing approximately one-third of the issued and outstanding shares of BZAM following the closing of the transaction, which is anticipated to occur on or about December 18, 2023, subject to customary closing conditions. BZAM will also enter into a supply agreement under which FBHI’s wholly owned subsidiary, 14th Round, will continue to provide child-resistant packaging, high-tech vaporization hardware, and pre-roll cones to BZAM. “This transaction combines BZAM’s cultivation, production, and sales infrastructure with the exceptional portfolio of international brands that Final Bell has brought to market in Canada. FBHI, together with Greg Boone and his team at FBC, have done an incredible job introducing the biggest names in cannabis to Canadian consumers and creating significant value in the process. We are pleased to bring this team and these brands to BZAM,” said Matt Milich, CEO of BZAM. “This combination also brings in FBHI as an invaluable strategic shareholder to the Company, which creates additional opportunities for long term growth and value creation.” As part of the transaction, Greg Boone, CEO of FBC, will join BZAM as President and Jennifer Maccarone will join as VP of Operations. FBC’s Chief Legal Officer Christy Zhou will assume the same role at BZAM, and Lana MacKenzie will also take on a senior role within BZAM. Matt Milich will remain as CEO of BZAM. In addition, FBHI will be entitled to appoint a new member to BZAM’s board of directors. (read more)

CANNARA REPORTS Q4 EARNINGS: On Thursday, Cannara Biotech (LOVFF) reported fourth quarter earnings per share of C$0.05 on revenue of C$18.3M, which compared to EPS of C$0.01 on revenue of C$11.9M for the same period last year. “Cannara Biotech isn’t just growing, we’re charting a path of sustained, profitable growth that sets a new standard for the industry,” stated Zohar Krivorot, CEO. “In this dynamic cannabis market, our rapid ascent to having the third-largest market share in Quebec is just the beginning1. We’re seeing continued growth in Ontario, Alberta, and British Columbia, and our achievement of activating 9 grow zones well ahead of schedule in the third quarter of this year is a testament to our team’s dedication and strategic planning. Our three flagship brands have not only captured market attention but have also played a pivotal role in driving our profitability, with over 70 new SKUs delivered this year, achieving yet another record for Cannara. This success is a clear indicator of our ability to balance growth with profitability. Our commitment to bringing high-quality, innovative cannabis products to the market is unyielding, and we anticipate our expanding product catalog to further solidify our position as a leader in the industry.” (read more)

MIND MEDICINE ASSUMED WITH BUY: On Tuesday, Canaccord assumed coverage of Mind Medicine (MNMD) with a Buy rating and $9 price target. The biopharma company is developing therapeutics to treat brain health-focused indications and lead candidate, MM-120, a salt of the psychedelic LSD, is in a Phase 2b trial for generalized anxiety disorder, or GAD, where “current treatment outcomes are less than ideal,” the analyst said. These data “are due any day now” and are key to the stock, the analyst said. The firm views the potential for “absolute upside as significantly greater than downside,” so it would be buyers into the data. (read more)

CANNABIS/PSYCHEDELIC STOCKS: Publicly-traded companies in the space include Aleafia Health (ALEAF), Atai Life Sciences (ATAI), Aurora Cannabis (ACB), Avant Brands (AVTBF), Ayr Wellness (AYRWF), Awakn Life Sciences (AWKNF), Canopy Growth (CGC), Chicago Atlantic (REFI), Clearmind (CMND), Clever Leaves (CLVR), CordovaCann (LVRLF), Cresco Labs (CRLBF), Cronos Group (CRON), Columbia Care (CCHWF), Compass Pathways (CMPS), CURE Pharmaceutical (CURR), Curaleaf (CURLF), CV Sciences (CVSI), Cybin (CYBN), Delic Holdings (DELCF), Delta 9 (DLTNF), Entourage Health (ETRGF), Enveric Biosciences (ENVB), Fire & Flower (FFLWF), Flora Growth (FLGC), General Cannabis (CANN), Goodness Growth (GDNSF), Greenlane (GNLN), Green Thumb (GTBIF), GrowGeneration (GRWG), Hemp (HEMP), High Tide (HITI), India Globalization Capital (IGC), Indiva (NDVAF), Innovative Industrial Properties (IIPR), InterCure (INCR), IM Cannabis (IMCC), Wellbeing Digital (KONEF), Khiron Life Sciences (KHRNF), Lowell Farms (LOWLF), Lotus Ventures (LTTSF), Lucy Scientific Discovery (LSDI), MediPharm (MEDIF), MedMen (MMNFF), NewLake Capital (NLCP), Numinus (NUMIF), Organigram (OGI), Planet 13 (PLNHF), Reunion Neuroscience (REUN), Revitalist (RVLWF), RIV Capital (CNPOF), Relmada (RLMD), RYAH Group (RYAHF), Safe Harbor Financial (SHFS), SNDL (SNDL), Sproutly (SRUTF), Skye Biosciences (SKYE), Stem Holdings (STMH), Sunniva (SNNVF), TerrAscend (TRSSF), Tetra Bio-Pharma (TBPMF), Tilray (TLRY), Trulieve (TCNNF), Tryp Therapeutics (TRYPF), Verano (VRNOF), Village Farms (VFF), Zynerba (ZYNE) and 4Front Ventures (FFNTF).