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 cannabis earnings, psychedelics earnings and a study initiation.

CANNABIS FIRMS REPORT EARNINGS: On Monday, IM Cannabis (IMCC) reported a third quarter loss per share from continuing operations of (C$0.16) on revenue of C$12.4M, which compared to a loss per share of (C$0.06) on revenue of C$14.2M last year. “As in the previous quarters, in Q3 2023, we continued towards our goal of sustainable profitability,” said CEO Oren Shuster. “Our focus on premium and premium plus in the Israeli market, where we are market leaders. On the flip side, we had to adjust our portfolio accordingly, to clean out the slow-moving mid and low range stock, which increased our sales volumes, but affected both our revenue and gross margin this quarter.” (read more)

Additionally on Monday, SNDL (SNDL) reported Q3 revenue of C$237.6M, compared to revenue of C$230.5M for 3Q22. “SNDL’s positive net cash from operating activities and first quarter of free cash flow generation marks a pivotal milestone, reflecting our team’s commitment to operational and financial excellence,” said Zach George, CEO. “We are intent on realizing SNDL’s potential for improved profitability, material growth and greater efficiencies across all of our segments.” (read more)

On Tuesday, Acreage Holdings (ACRHF) reported a Q3 loss per share of (7c) on revenue of $56.5M, which compared to a loss per share of (20c) on revenue of $61.4M for the same period last year. “I’m proud of the progress the team made in Q3 building a company focused on strong brands and implementing a cost structure that will allow for future growth,” said CEO Dennis Curran. “In particular, New Jersey and Connecticut remain strong areas of performance for our business, once again delivering record results and robust year-over-year growth. To continue this momentum, we have been aggressively driving our strategy of broadening distribution of our most popular, top-selling offerings, having recently launched craft cannabis brand Superflux in New Jersey, which has already had a positive impression on consumers in its first two weeks of sales.” (read more)

Additionally on Tuesday, CV Sciences (CVSI) reported Q3 revenue of $4.1M, compared to $3.8M for 3Q22. CEO Joseph Dowling said, “Our third quarter progress demonstrates our continuous commitment to innovation and cost-efficient execution as we move closer to profitability and positive cash flow.” (read more)

Lowell Farms (LOWLF) also reported Q3 results on Tuesday with a loss per share of ($1.66) on revenue of $6.2M, which compared to a loss per share of (43c) on revenue of $8.7M last year. “One year into our ambitious restructuring strategy, the decisions we’re making have enabled us to eliminate millions in debt, and secured rights to advance the Lowell brand, positioning ourselves for growth and success,” said Chairperson Ann Lawrence. “The completion of this deal allows the company to refocus on expanding our portfolio while continuing to build strong partnerships within the California Cannabis market.” (read more)

MORE CANNABIS EARNINGS: On Tuesday, MediPharm Labs (MEDIF) also reported Q3 revenue of C$8.5M, compared to revenue of C$7.3M for the same period last year. David Pidduck, CEO, commented, “We are proud of our focus on margins, cost reductions and profitability. Now, our strong balance sheet and improving profitability favourably positions us to make strategic investments for revenue growth. Beyond organic growth investments, there will be many M&A opportunities to consider in the coming quarters to further grow our revenue and shorten the path to profitability.” (read more)

On Tuesday, Safe Harbor Financial (SHFS) reported a Q3 loss per share of (2c) on revenue of $4.3M, which compared to earnings per share of 5c on revenue of $2.4M last year. The company also guided to 2023 revenue of $16M-$16.5M. “The third quarter was another successful quarter for Safe Harbor as our ongoing execution of our growth strategy led to another period of strong financial and operational results for the overall business,” commented Sundie Seefried, CEO. (read more)

On Wednesday, Cresco Labs (CRLBF) reported a Q3 loss per share of (34c) on revenue of $190.6M, which compared to a loss per share of (3c) on revenue of $210.5M last year. “Our third quarter results demonstrate our ability to drive solid performance, with strong gains to our margin and operating cash flow, by continuing to execute on a strategy where we win in our core markets and with our core stores, core brands and core products,” said CEO Charles Bachtell. (read more) Following the report, Alliance Global Partners raised the firm’s price target on Cresco Labs to C$4.50 from C$4 and kept a Buy rating on the shares. The firm noted the strong quarter relative to expectations, which included raised implied second half revenue guidance. (read more) Additionally, Cormark upgraded Cresco Labs to Speculative Buy from Market Perform with a C$3.25 price target. (read more)

Additionally on Wednesday, Goodness Growth (GDNSF) reported a Q3 loss per share of (4c) on a revenue of $24.7M, which compared to a loss per share of (7c) on a revenue of $18.9M last year. Interim CEO Josh Rosen commented, “The strength of our third quarter results reflects a combination of benefits from our recent operational improvement initiatives and regulatory catalysts in Maryland following the launch of adult use sales in July.” (read more)

On Thursday, AYR Wellness (AYRWF) reported a Q3 loss per share from continuing operations of (24c) on revenue of $114.4M, which compared to a loss per share of (48c) on revenue of $108.7M last year. The company also forecast revenue to be essentially flat in Q4 compared Q4, and to maintain an adjusted EBITDA margin of 25% in Q4. CEO David Goubert said, “We continued to execute on our optimization initiatives during the quarter, as reflected by another strong period of year-over-year adjusted EBITDA growth and cash flow generation. We also continued to lay the foundation for AYR’s long-term revenue growth and profitability, bolstered by our recent work to reach agreements with our creditors, which, when fully consummated, will result in the extension of maturities of nearly $400M of debt in the aggregate by two years.” (read more)

PSYCHEDELICS EARNINGS: On Monday, Enveric Biosciences (ENVB) reported a Q3 loss per share of ($1.30), which compared to a loss per share of ($1.46) for the same period last year. “The third quarter of 2023 was a period of significant progress for our team as we completed several initiatives that served to enhance the value of our differentiated neuroplastogenic small-molecule therapeutics as we advance towards the clinic,” said Joseph Tucker, CEO. (read more)

On Tuesday, atai Life Sciences (ATAI) reported Q3 EPS of 25c on revenue of $87,000, which compared to analyst estimates of a loss per share of (20c) and revenue for last year of $24,000. “As the burden of unmet medical needs in mental health care continues to grow, our team remains highly focused on pioneering the development of innovative neuropsychiatric treatments,” said Florian Brand, CEO. “With a strong cash balance of $209M, we are well positioned to continue advancing our clinical programs towards key data milestones, including the Phase 2b readout of RL-007 expected in the second half of 2024.” (read more)

Additionally on Tuesday, Cybin (CYBN) reported a Q2 net loss of (C$11.9M), which compared to net loss of (C$10M) last year. “Advancing our clinical programs with the goal of changing the treatment landscape in mental health has always been Cybin’s mission,” said Doug Drysdale, CEO. We have made enormous progress during the past quarter, with ample momentum to carry us through year-end and into 2024. We are actively gathering important data from CYB003, our deuterated psilocybin analog program, and CYB004 and SPL028, our deuterated DMT programs, with topline readouts expected before the end of 2023.” (read more)

COMPASS INITIATES UK COMPONENT OF COMP360 STUDY: Compass Pathways (CMPS) announced Wednesday the initiation of the UK component of its phase 3 program of investigational COMP360 psilocybin treatment in treatment-resistant depression. The research will take place in multiple sites in the UK, including at the Centre for Mental Health Research and Innovation in London. The ongoing phase 3 program is the largest randomized, controlled, double-blind psilocybin treatment clinical program ever conducted and follows results from Compass’s phase 2b study of COMP360 psilocybin treatment. The phase 3 program consists of two pivotal trials, and each trial has an integrated, long-term outcomes component. COMP 006 will take place in the UK and globally and will study three dose arms of COMP360. COMP 005 is a US-based trial examining the effect of a single 25mg dose of COMP360 psilocybin, compared with placebo. (read more)

IIPR PRICE TARGET LOWERED: Compass Point lowered the firm’s price target on Innovative Industrial Properties (IIPR) on Monday to $85 from $95 and kept a Neutral rating on the shares. While the total return to the firm’s revised price target is “fairly attractive” and the dividend is “stable,” the firm said it will remain on the sidelines until the company is able to re-lease the two vacant cannabis cultivation facilities it recovered from defaulted tenants. (read more)

CANNABIS/PSYCHEDELIC STOCKS: Publicly-traded companies in the space include Aleafia Health (ALEAF), Audacious (AUSAF), Aurora Cannabis (ACB), Avant Brands (AVTBF), Awakn Life Sciences (AWKNF), Body and Mind (BMMJ), BZAM (BZAMF), Cannara Biotech (LOVFF), Canopy Growth (CGC), Chicago Atlantic (REFI), Clearmind (CMND), Clever Leaves (CLVR), CordovaCann (LVRLF), Cronos Group (CRON), Columbia Care (CCHWF), Curaleaf (CURLF), Delic Holdings (DELCF), Delta 9 (DLTNF), Entourage Health (ETRGF), Fire & Flower (FFLWF), Flora Growth (FLGC), General Cannabis (CANN), Greenlane (GNLN), Green Thumb (GTBIF), GrowGeneration (GRWG), Hemp (HEMP), High Tide (HITI), India Globalization Capital (IGC), Indiva (NDVAF), InterCure (INCR), Wellbeing Digital (KONEF), Khiron Life Sciences (KHRNF), Lotus Ventures (LTTSF), Lucy Scientific Discovery (LSDI), MedMen (MMNFF), MindMed (MNMD), NewLake Capital (NLCP), Numinus (NUMIF), Organigram (OGI), Planet 13 (PLNHF), Reunion Neuroscience (REUN), Revitalist (RVLWF), RIV Capital (CNPOF), Relmada (RLMD), RYAH Group (RYAHF), 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), Wesana Health (WSNAF), Zynerba (ZYNE) and 4Front Ventures (FFNTF).