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 earnings, partnerships and analyst notes.

TILRAY REPORTS Q3 EARNINGS: On Tuesday, Tilray Brands (TLRY) reported third quarter adjusted earnings per share of 0c on revenue of $188.3M, which compared to analyst estimates of a loss per share of (5c) on revenue of $198.5M. Irwin Simon, CEO, stated, “Over the past several years, our playbook of expanding our cannabis business to complementary markets such as beverages and hemp-based consumer products has positioned us well to navigate the current environment and to benefit from future growth opportunities. Tilray Brands today represents the future of the global CPG industry leading the convergence of cannabis, beverages, and wellness. We have become the most dynamic and diversified cannabis-lifestyle and consumer products company globally as we lead and advance global cannabis, fuel consumer needs in wellness foods and snacks, and disrupt craft beverages.” For its fiscal year ending May 31, 2024, the company is now guiding to an Adjusted EBITDA target of $60M to $63M. In addition, the company no longer expects to generate positive adjusted free cash flow for 2024, due to delayed timing for collecting cash on various asset sales. (read more)

Following the report, Alliance Global Partners lowered the firm’s price target on Tilray to $2.25 from $2.75 and kept a Neutral rating on the shares. The firm is now applying a lower multiple to its estimates due to continued cannabis share losses in Canada and inconsistent cash flow generation, noting that it now models Q4 sales of $28.9M versus $26.5M prior, near the lower end of the implied guide, equating to an unchanged FY24 EBITDA forecast of $61M. (read more)

Meanwhile, CIBC lowered the firm’s price target on Tilray to $2 from $2.25 and kept a Neutral rating on the shares following the Q3 report. The analyst views the company’s guidance cut as prudent but thinks 2025 consensus estimates still look “quite sanguine,” even considering synergies. EBITDA growth in Tilray’s beverage business may take time as it seeks to introduce new products and reinvigorate brands, the analyst said. The firm cites a lower multiple and reduced sales estimates for the target cut. (read more)

IM CANNABIS, FLORA GROWTH ENTER DISTRIBUTION AGREEMENT: IM Cannabis (IMCC) announced Tuesday it has entered a strategic distribution agreement with Vessel Brand, a subsidiary of Flora Growth Corp. (FLGC). IMC’s brands are known in the premium Israeli cannabis market, facilitating the import and wholesale of premium medical cannabis through retail pharmacies, online platform, and distribution center. Vessel is a premium cannabis accessories brand with a wide range of products. “The Israeli Ministry of Health recently decreed that grinders can only be legally purchased in pharmacies,” said Oren Shuster, CEO of IMC. “We believe that Vessel premium accessories not only compliment our premium cannabis flowers, but also bolster our pharmacies’ positioning as a one stop shop for a premium medical cannabis experience.” (read more)

CANNABIST COMPANY, REVELRY EXPAND PARTNERSHIP: The Cannabist Company Holdings (CBSTF) announced Tuesday the expansion of its partnership with Revelry Herb Co. into the Maryland, Ohio, Pennsylvania and New York markets. Through this partnership, The Cannabist Company supplies a curated collection of strains for Revelry’s flower and pre-roll offerings, which are now available through the company’s retail and wholesale platforms in Massachusetts and New Jersey. By mid-April, Revelry products will be on shelves in Pennsylvania at the company’s three Columbia Care dispensaries and across the state through its wholesale channels. Products will also launch in Maryland, New York, and Ohio in the coming months, pending regulatory approval. (read more)

CRONOS PRICE TARGET RAISE: On Sunday, BofA raised the firm’s price target on Cronos Group (CRON) to $2.50 from $2 and kept an Underperform rating on the shares. The firm sees recent developments in German medical cannabis prescriptions, upcoming regulatory/prescription changes in Israel, and Canadian panel recommendations as a plus, but cautions investors to not overreact to these changes, as history has proved that progress in the cannabis world moves at a much slower pace than investors might want and not in a straight line. (read more)

OPTIMI, MATAI SIGN PSILOCYBIN SUPPLY AGREEMENT: Optimi Health Corp. (OPTHF) announced Tuesday the signing of an international natural psilocybin supply agreement with New Zealand-Based Matai Medical Research Institute, on behalf of the Tu Wairua Project. This agreement marks Optimi’s first supply deal to New Zealand. Under the terms of the agreement, Optimi will provide Matai with a quantity of its validated GMP Full Spectrum Natural Psilocybin extract. Further, the agreement includes tracked stability of the extract, ensuring the highest standards of GMP quality and compliance. In November 2023, the Tu Wairua project, a collaborative effort involving a diverse array of individuals, whanau, community groups, and institutions, convened at Rangiwaho Marae, a tribal meeting place in the Tairawhiti region of New Zealand. The project team has since designed a clinical trial protocol and secured ethics and regulatory approval for its inaugural clinical study. Scheduled for mid-2024, the trial, titled “Pilot Study of Psilocybin Administration in Healthy Volunteers within a Marae Setting,” aims to evaluate the feasibility, acceptability, and safety of administering psychedelic-assisted therapy to Maori patients in a marae setting. TThe insights gained from this trial will inform potential future controlled trials involving Maori patients with methamphetamine use disorder. (read more)

CANNABIS/PSYCHEDELIC STOCKS: Publicly-traded companies in the space include Acreage (ACRHF), Atai Life Sciences (ATAI), Aurora Cannabis (ACB), Ayr Wellness (AYRWF), Avant Brands (AVTBF), BZAM (BZAMF), Cannara Biotech (LOVFF), Canopy Growth (CGC), Chicago Atlantic (REFI), Clearmind (CMND), Clever Leaves (CLVR), Compass Pathways (CMPS), CordovaCann (LVRLF), Cresco Labs (CRLBF), Curaleaf (CURLF), CURE Pharmaceutical (CURR), CV Sciences (CVSI), Cybin (CYBN), Delta 9 (DLTNF), Entourage Health (ETRGF), Enveric (ENVB), Fire & Flower (FFLWF), Trees Corporation (CANN), Goodness Growth (GDNSF), Greenlane (GNLN), Green Thumb (GTBIF), GrowGeneration (GRWG), Hemp (HEMP), Heritage Cannabis (HERTF), High Tide (HITI), India Globalization Capital (IGC), Indiva (NDVAF), Innovative Industrial Properties (IIPR), InterCure (INCR), Lotus Ventures (LTTSF), Lowell Farms (LOWLF), Lucy Scientific Discovery (LSDI), MediPharm (MEDIF), MedMen (MMNFF), MindMed (MNMD), NewLake Capital (NLCP), Numinus (NUMIF), Organigram (OGI), Planet 13 (PLNHF), Red White & Bloom (RWBYF), Relmada Therapeutics (RLMD), Reunion Neuroscience (REUN), Revitalist (RVLWF), RIV Capital (CNPOF), 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), Trulieve (TCNNF), Tryp Therapeutics (TRYPF), Verano (VRNOF), Village Farms (VFF), Zynerba (ZYNE) and 4Front Ventures (FFNTF).