Here’s What You Missed in Cannabis 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 brand relaunch, an earnings report and a reverse stock split.

ORGANIGRAM RELAUNCHES TRAILBLAZER BRAND: Organigram Holdings (OGI) announced Monday the relaunch of cannabis brand, Trailblazer. The company said, “More than a year in the making, Trailblazer’s modernized brand identity and revitalized product lineup represent a significant opportunity to connect with a large and important consumer segment whose needs were previously unmet by the Organigram brand portfolio.” Featuring THCV gummies, CBG infused pre-rolls and a high-potency 1×0.5g pre-roll, Trailblazer will re-enter the market with a range of differentiated offerings. “By understanding the unique preferences and aspirations of our Trailblazer target audience, we strived to create a deeply rewarding brand experience that fosters a sense of understanding, positivity, and empowerment. The brand positioning reflects the emotional aspirations of this consumer segment, reflecting a brand that is designed for a modern legal cannabis consumer. Trailblazer aims to create a positive and uplifting experience for its consumers, supporting them in their cannabis journey”, said Megan McCrae, Senior Vice President, Marketing and Communications. (read more)

BZAM REPORTS Q2 EARNINGS: On Thursday, BZAM (BZAMF) reported second quarter net revenue of C$19.3M, which compared to net revenue of C$11.6M last year. Matt Milich, CEO, stated, “Through the second quarter we continued to focus on the execution of our 2023 objectives to improve cash flows, strengthen our balance sheet and streamline our operations. We have a set of initiatives underway, focusing on cost reduction and revenue expansion, and we expect to see the financial impacts of these initiatives reflected in our results over the coming quarters. We appreciate the support of our shareholders as we continue to work toward our 2023 objectives.” (read more)

CORDOVACANN PROVIDES STAR BUDS UPDATE: CordovaCann (LVRLF) provided an update on its Star Buds Cannabis Co. retail operations in Canada on Wednesday. The company said, “Star Buds Cannabis Co. stores continue to perform well in 2023 despite a difficult environment for the retail cannabis industry. The Company currently has 11 operational Star Buds Cannabis Co. retail stores through its subsidiaries, 2734158 Ontario Inc. and 10062771 Manitoba Ltd., which continue to increase market share and expand margins due to strong cost controls, diverse product assortment and excellent customer service. Management has further optimized the retail platform by closing its 3 non-performing stores in its wholly-owned subsidiary, Cordova Investments Canada, Inc., resulting in lower overhead and compliance costs, and stronger overall cash flow.” The Star Buds Cannabis Co. chain generated revenues in excess of C$1.1M in each of the past three months, nearing record monthly revenues with three fewer stores on the retail platform. The stores grew revenues an average of 11.5% each month of this period, in comparison to the same months of the prior year. In July, the chain produced revenues of C$1.22M, with 3 stores posting monthly revenue records. Gross margin has improved throughout 2023, and the stores posted an aggregate gross margin of 27.6% in July. The company added, “Strong revenue growth trends have continued into August, which should aid in further increasing gross margin. Management expects Star Buds Cannabis Co. to continue to benefit from closures of competing stores, industry consolidation, and increased customer awareness. The Company is also planning to expand the Star Buds Cannabis Co. platform across Canada through both organic store growth and acquisitions at the appropriate time.” (read more)

CLEVER LEAVES ANNOUNCES REVERSE STOCK SPLIT: Clever Leaves (CLVR) announced Thursday that its board of directors has approved a 1-for-30 reverse split of its common shares. The reverse share split will take effect at approximately 5:00 p.m. Eastern Time on August 24, 2023. As a result of the reverse share split, every 30 common shares of the company will automatically be converted into one common share, reducing the number of issued and outstanding common shares from approximately 45.7M to approximately 1.5M, based on the number of shares outstanding as of August 10, 2023. (read more)

AYR WELLNESS PRICE TARGET LOWERED: On Friday, Canaccord lowered the firm’s price target on Ayr Wellness (AYRWF) to C$8.50 from C$10 and kept a Speculative Buy rating on the shares. The firm said although revenue came in a bit light versus their expectations, they were encouraged by the company’s margin profile, which saw sequential expansion amidst a tough macro environment. However, fundamental performance aside, they still believe Ayr’s elevated long-term debt balance continues to represent an overhang. (read more)

CANNABIS/PSYCHEDELIC STOCKS: Publicly-traded companies in the space include Aleafia Health (ALEAF), Acreage (ACRHF), Atai Life Science (ATAI), Audacious (AUSAF), Aurora Cannabis (ACB), Avant Brands (AVTBF), Awakn Life Sciences (AWKNF), Body and Mind (BMMJ), Cannara Biotech (LOVFF), Canopy Growth (CGC), Chicago Atlantic (REFI), Clearmind (CMND), Cresco Labs (CRLBF), Cronos Group (CRON), Columbia Care (CCHWF), Compass Pathways (CMPS), Curaleaf (CURLF), CURE Pharmaceutical (CURR), 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), Greenlane (GNLN), Green Thumb (GTBIF), GrowGeneration (GRWG), Goodness Growth (GDNSF), Hemp (HEMP), HEXO (HEXO), 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), MediPharm Labs (MEDIF), MedMen (MMNFF), MindMed (MNMD), NewLake Capital (NLCP), Numinus Wellness (NUMIF),LVRL Planet 13 (PLNHF), Reunion Neuroscience (REUN), Revitalist (RVLWF), RIV Capital (CNPOF), Relmada (RLMD), RYAH Group (RYAHF), Safe Harbor (SHFS), Small Pharma (DMTTF), 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), Wesana Health (WSNAF), Zynerba (ZYNE) and 4Front Ventures (FFNTF).