Weekly Roundup on the Cannabis Sector & Psychedelic Sector

Key Takeaways; Cannabis Sector

• Glass House Brands Plans to Buy Plus Products for $25.6 Million.

• Planet 13 to Buy Next Green Wave Holdings for Approximately C$91 Million in Stock.

• Organigram Bought Quebec Cannabis Producer Laurentian Organic for $36 Million.

• Curaleaf to Buy Arizona Dispensary for $13 Million.

Key Takeaways; Psychedelic Sector

Many investors are hoping to profit from the marijuana market, which is predicted to double in value by 2025. As more states and countries continue to decriminalize or legalize Cannabis and/or its components, entrepreneurs and current businesses will have more chances to flourish in the comings years.

The growth of loan funding available to American cannabis companies has been one of the year’s biggest positives for the sector. Not only have there been more lenders, but the terms have also improved, with cheaper rates and longer maturities.

However, like with any nascent industry, there are several investing risks in the cannabis sector. Therefore it pays to grasp how this market operates, whether you’re a first-time investor or a seasoned pro. This is why you need to keep yourself updated with the critical developing news in this sector. If you are looking for a trusted source that covers all the key announcements and press releases from the top and emerging companies in the cannabis sector, then this is the place to be. Our articles will rapidly get you up to date and cover all the essential news in the sector.

With that in mind, now let’s get on with the companies that hit the headlines this week with significant press releases and announcements.

Top Marijuana Companies for Week

#1: Glass House Brands

Glass House Brands Inc. (OTC: GLASF), based in Southern California, announced on Monday, December 20, that it will pay $26 million for marijuana edibles producer Plus Products Inc. The purchase price is made up of unsecured debt, equity, and “extra performance-based consideration,” according to Glass House. Also, Glass House said that the transaction is part of the firm’s aim to become “California’s largest cannabis brand-building platform.”

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“As one of the fastest-growing categories in cannabis, edibles are a key component of the Glass House growth strategy,” CEO Kyle Kazan said in the release. “Our vertically integrated platform will allow us to expand the distribution of PLUS to the more than 700 stores in our network, as well as to our own retail stores, as we pursue top sales ranking in both flower and edibles categories in the country’s largest market.” The deal is expected to close in the first quarter of 2022.

Plus Products, according to Kazan, will be able to compete with Wana Brands, a Colorado-based firm that produces one of the most popular multistate lines of infused gummies. Wana recently signed an agreement with Canopy Growth for a deal worth about $300 million.

Despite Green House cutting such a mega deal, the company itself was also acquired this year. Mercer Park Brand Acquisition Corp., a special purpose acquisition firm, bought Glass House in April for $567 million.

Glass House shares trade as GLAS on the NEO Exchange in Canada and as GLASF on the U.S. over-the-counter markets.

#2: Planet 13

Planet 13 Holdings Inc. (OTC: PLNHF), a Nevada-based marijuana firm with operations in California, has agreed to buy indoor cannabis manufacturer Next Green Wave Holdings for around 91 million Canadian dollars ($70.3 million).

According to a Planet 13 press release issued Monday, December 20, Next Green Wave (NGW) has a facility in Coalinga, California, that “is home to its nursery, cultivation, distribution, and future packaging business.” The press release stated that NGW’s operations would serve as the backbone of Planet 13’s sustained concentration on the California market. “NGW will enable Planet 13 to introduce their diverse brand portfolio of exotic, pheno-hunted cultivars to the Santa Ana superstore as well as across the state,” the release noted.

In February, Planet 13 raised CA$69 million for possible acquisitions and other actions. This year, the company built a superstore in Santa Ana, California, and plans to expand to Florida and Illinois in the near future.

As part of the latest acquisition, Next Green Wave owners will get 0.1081 Planet 13 shares and $0.0001 in cash per each Next Green Wave share. The exchange ratio is subject to adjustment in certain circumstances, and the transaction is subject to shareholder, regulatory and court approvals. The deal is expected to close in the first quarter of 2022.

Planet 13 shares trade as PLTH on the Canadian Securities Exchange and as PLNHF on U.S. over-the-counter markets.

#3: Organigram

Laurentian Organic, a Quebec cannabis grower, was acquired by OrganiGram Holdings Inc. (NASDAQ: OGI) for a deal worth at least 36 million Canadian dollars ($27.8 million).

According to Organigram, the acquisition of privately held Laurentian and its Tremblant Cannabis hashish brand, will expand the company’s footprint in Quebec market, which is Canada’s second-largest province by population.

According to retail sales numbers released Tuesday, December 21, by Statistics Canada, Quebec consumers spent CA$52.5 million on regulated recreational cannabis in October, making it the third-most valued marijuana market in Canada that month, after Ontario and Alberta.

Laurentian was defined as “one of the leading hash companies in Quebec” in a news release issued by New Brunswick-based Organigram on Tuesday. Laurentian can currently produce roughly 600 kilograms (1,323 pounds) of cannabis flower and 1 million units of hash per year, according to the release.

An ongoing facility expansion could increase that output to “approximately 3,000 kilograms of flower and 2 million units of hash by the second half of 2022,” the release noted. “The hash category in Canada is increasing in importance and leveraging Organigram’s national sales and distribution network, (Organigram) believes that Laurentian’s product offerings will continue to grow nationwide at an accelerated pace.”

The purchase price of CA$36 million includes CA$10 million in cash and CA$26 million in Organigram stock. If Laurentian meets specific earnings before interest, taxes, depreciation, and amortization goals in calendar years 2022 and 2023, further compensation in the form of Organigram shares may be given.

Last month, Organigram announced it had grown its share in the Canadian recreational cannabis market since the beginning of 2021. The company is continuing to cement its footprint in the Canadian recreational cannabis market; and there is no doubt that the Company is expected to have a great year in 2022.

Organigram shares trade as OGI on the NASDAQ exchange and the Toronto Stock Exchange.

#4: Curaleaf

Curaleaf Holdings, Inc. (OTC: CURLF) announced the signing of a definitive deal to buy an Arizona store for $13 million, marking the company’s tenth acquisition in the expanding adult-use sector.

According to the Massachusetts-based multistate operator, Natural Remedy Patient Center in Safford will be relocated to a new, 9,000-square-foot flagship retail store in Scottsdale in mid-2022, and the company hopes to consummate the acquisition in January. Curaleaf will pay $12 million in cash and $1 million in stock before the deal closes, according to the terms of the agreement.

The only larger operator in Arizona is Florida-based Trulieve Cannabis, which acquired Harvest Health & Recreation earlier this year. Trulieve has 16 stores in operation in Arizona, three additional licenses and an option for a 20th license in the vertically integrated state.

Curaleaf previously announced that it would acquire Tryke Cos., which has two Arizona retail outlets, in a deal that is expected to close in the second half of 2022. That will boost Curaleaf’s retail footprint in Arizona to 12 stores.

Once the Natural Remedy transaction closes, Curaleaf said, it will have 118 retail outlets across the country. The company operates in 23 states, has 25 cultivation sites and employs more than 5,200.

Top Psychedelic Companies for Week

#1: Awakn

Awakn Life Sciences Corp. (NEO: AWKN) (OTC: AWKNF) is a UK-based company working to develop and deliver treatments for addictions and substance use disorders (SUDs). The company is committed to creating effective psychedelic-assisted psychotherapies, leveraging several classical and novel compounds. Additionally, Awakn is building a network of treatment clinics to provide patients with immediate care.

Awakn’s drug pipeline includes Ketamine, MDMA, and several novel MDMA derivatives. In line with the company’s focus on addiction, indications under investigation include alcohol use disorder (AUD), gambling addiction, behavioral addictions, and non-specified substance use disorders (SUD).

The company has several ongoing investigations including preclinical studies on the company’s proprietary AWKN001 and AWKN002 novel drug candidates, a Phase IIa MDMA trial targeting AUD, and a Phase IIb ketamine trial also targeting AUD.

It is these milestones achievements that have made many financial analyst and economists experts to rank the company so high amongst its competitors. This week The Dales Report (TDR), a business news platform, that provides the latest and best insight on the stories making headlines around the world, named Awakn as the top company amongst 10 psychedelic companies to watch in 2022.

The Dales Report said that Awakn caught their attention in 2021 for its team of renowned psychedelic researchers, including chief research officer Professor David Nutt, chief medical officer Dr. Ben Sessa, and head of ketamine psychotherapy Dr. Celia Morgan.

The business news platform also said that it was impressed with Awakn’s unique studies into ketamine treatment for addiction and gambling addiction. In addition, the platform also recognized Awakn’s Bristol clinic, which received approval to offer treatment in October, and the recently acquired clinic in Norway. In conclusion, TDR said they were also impressed by the smart deal Awakn made with MINDCURE to distribute its ketamine protocol across clinics in the United States.

 

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