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  Title	Weekly Roundup on the Cannabis Sector & Psychedelic Sector
  ID	7598934
  External ID	123607403
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  Published Date	March 10, 2025, 7:36 a.m.
  Summary	Unlock stock picks and a broker-level newsfeed that powers Wall Street. Upgrade Now Weekly Roundup on the Cannabis Sector & Psychedelic Sector ME Staff Mon, Mar 10, 2025, 8:36 AM 13 min read In This A
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  Content ID	4904180
  Key	77b508ab-96af-496f-84ca-57ced709c357
  Content	Unlock stock picks and a broker-level newsfeed that powers Wall Street. Upgrade Now Weekly Roundup on the Cannabis Sector & Psychedelic Sector ME Staff Mon, Mar 10, 2025, 8:36 AM 13 min read In This Article: CURLF -1.98% SHFS -2.75% SHFSW +0.37% GHBWF 0.00% GLASF -2.89% Key Takeaways; Cannabis Sector Ayr Wellness announced a refocused strategy, exiting Illinois, and expanding in Florida Curaleaf’s revenue fell slightly in 2024, as the company struggles for stability Glass House secured a $50 million loan aimed at strengthening its financial position Safe Harbor restructured debt to strengthen financial flexibility Organigram secured final funding tranche from British American Tobacco Key Takeaways; Psychedelic Sector Revive Therapeutics acquired molecular hydrogen IP from DiagnaMed Solvonis Therapeutics to Acquire Awakn Life Sciences in major biotech deal Below is a weekly roundup of what happened this week in the cannabis and psychedelic sectors. In this ever-evolving landscape, we explore the major developments and groundbreaking initiatives happening among companies operating in these industries; from advancements in medical research, therapeutic applications to shifts in legal frameworks and current market trends. Top Marijuana Companies for the Week #1: Ayr Wellness AYR Wellness Inc. ( CSE: AYR.A ) ( OTCQX: AYRWF ) is shifting its approach, moving away from rapid expansion and instead focusing on strengthening its core markets. The cannabis retailer, which was once driven by an aggressive expansion mindset, is now focusing on sustainability and profitability, as a result the company announced that it had decided to exit Illinois, where it struggled to gain the necessary scale to compete effectively, and is instead doubling down on its operations in Florida. During the company’s recent earnings call , Ayr interim CEO, Steven Cohen, announced the company had signed a letter of intent to sell its four retail stores in Illinois, citing an inability to achieve the necessary scale or vertical integration to compete effectively in the state. “We’re taking a hard look at other markets to make sure we are prioritizing those core markets that will deliver for our business,” said George DeNardo, Ayr’s newly promoted president. In the fourth quarter and full year 2024 financial results , Ayr reported a $164.2 million loss, largely due to write-downs following the rejection of recreational marijuana in Florida last November. However, rather than retreating from Florida, where nearly 70% of its retail stores operate, the company is doubling down. A key component of Ayr’s Florida strategy is the upcoming Ocala indoor cultivation facility , which DeNardo called “one of our most important catalysts of the year.” The facility is expected to more than double the company’s flower production capacity and address a longstanding weakness, the lack of premium indoor flower. “It’s been a lagging product form that we’ve had really over since Ayr’s conception,” DeNardo explained. He believes this expansion will help combat market price compression and drive more foot traffic to Ayr’s stores. Story Continues Beyond Florida, Ayr is also consolidating its operations in other key markets. It has already subleased a cultivation facility in Massachusetts and is in the process of closing a secondary grow site in Nevada. Meanwhile, in Ohio, where adult-use sales recently launched, the company is seeing strong growth. Retail revenue in the State jumped 41% quarter-over-quarter, and Ayr has opened its fourth store there, with plans to add three more this year. Interim CEO Steven Cohen acknowledged the difficulties facing the cannabis industry but remains optimistic. Quoting legendary basketball coach Jim Valvano, he emphasized Ayr’s strategy: “Survive and advance.” He added, “I believe that, ultimately, this is an extraordinary industry, and Ayr has a very important role to play in it.” #2: Curaleaf Curaleaf Holdings Inc. ( TSX: CURA ) ( OTCQX: CURLF ) , the largest cannabis company in the U.S., has now reported a staggering $1 billion in losses over the past five years. In 2024 alone, the company recorded a net loss of $216 million, with a $71.8 million loss in the fourth quarter, this was despite the company generating $1.34 billion in revenue in the fourth quarter and full year 2024 financial results . The company’s revenue showed a slight decline from 2023, with the fourth-quarter earnings totaling $331.1 million, a 4% drop from the previous year. This included $235.6 million from domestic retail sales, $64.3 million from domestic wholesale operations, and $30.7 million from international markets. Despite these figures, Curaleaf managed to secure $163.3 million in operating cash flow and $70.1 million in free cash flow for the year. Curaleaf’s CEO, Boris Jordan, acknowledged the financial challenges but remains optimistic. “Over the past two quarters, my primary objective has been to amplify our strengths, address key challenges, and stabilize the business,” he stated. “Having successfully achieved this, we are now forging ahead with our ‘Return to our roots’ initiative – an ambitious strategy centered on driving organic growth, optimizing margins and cash flow, and reducing debt.” Despite the challenges, Curaleaf has not shied away from expansion. In late 2024, it opened two more dispensaries in Florida, reaching a total of 66 in the state and 151 nationwide. The company also entered the German cannabis market, rebranded three dispensaries in Nevada, and secured a $40 million loan. Additional, in early 2025, Curaleaf introduced a new hemp-based beverage line in collaboration with Total Wine and launched a new cannabis brand, Reef, in Florida. #3: Glass House Glass House Brands Inc. ( CBOE CA: GLAS.A.U ) ( OTCQX: GLASF ) announced a new $50 million senior secured credit facility , a strategic move aimed at refinancing its previous $41 million loan and enhancing its financial position. The new loan extends the company’s debt maturity to 2030, with a balloon payment of $40 million due at the end of the term. The loan carries a fixed interest rate of 8.58%, significantly lower than the company’s previous borrowing rate. For the first two years, payments will be interest-only, allowing Glass House to preserve $13.1 million that would have been used for principal payments in 2025 and 2026. Principal and interest payments will then be made over the last three years, based on a 15-year amortization schedule. Kyle Kazan, Co-Founder, Chairman, and CEO of Glass House, emphasized the advantages of the deal. “Refinancing the credit facility strengthens our balance sheet, significantly improves our cash flow, and pushes out the maturity of our senior secured debt into 2030. By negotiating this facility directly with the lender, we have continued our tradition of cutting costs by arranging our own financing,” he said. To secure the loan, Glass House provided a first-priority lien on its Camarillo, Padaro, and Casitas greenhouse farms, as well as other company assets, excluding additional real estate holdings. Additionally, the company must maintain a minimum liquidity of $10 million in an account at the lending institution throughout the loan’s duration. Another key requirement is a Consolidated Fixed-Charge Coverage Ratio of at least 1.25x, tested quarterly on a trailing twelve-month basis. With this new financing in place, Glass House aims to continue its rapid expansion and strengthen its financial position. #4: Safe Harbor Financial SHF Holdings, Inc., (Safe Harbor Financial) (NASDAQ: SHFS ) announced it had successfully modified its debt agreement with Partner Colorado Credit Union, a move that unlocks over $6 million in cash flow and extends the repayment deadline to 2030. The deal comes as the company navigates a challenging financial period and transitions to new leadership under new CEO, Terry Mendez, who succeeded Sundie Seefried following her retirement in early February. The new debt agreement modifies the original terms by offering a two-year interest-only payment period, which will be in effect until February 2025. This move allows Safe Harbor to divert funds that would have gone toward the loan’s principal into more immediate business needs, providing significant financial relief. The company’s interest rate remains at 4.25% for the duration of the loan, and the repayment deadline has been extended until 2030. Mendez expressed confidence that this restructuring marked a turning point for the company. “Not only does the note modification significantly enhance our financial standing, but it also provides Safe Harbor with tremendous optionality as we enter this new chapter,” he stated. Despite these positive changes, Safe Harbor has faced considerable financial difficulties in recent months. The company reported a 19.6% revenue decline and a working capital deficit of $2.5 million in its September 2024 quarterly report . Much of these challenges stem from the company’s controversial merger with Rockview Digital Solutions, Inc, (Abaca), where it paid more than the fair value for assets, leading to fewer accounts and ongoing legal battles over a $3 million debt. Nonetheless, with this restructuring in place, Safe Harbor aims to stabilize its financial standing and explore new growth opportunities, signaling a fresh chapter under Mendez’s leadership. #5: Organigram Organigram Holdings Inc. ( NASDAQ: OGI ) ( TSX: OGI ) , a prominent Canadian cannabis producer, closed the final tranche of a significant CA$124.6 million funding round . This investment, which is from BT DE Investments , a subsidiary of British American Tobacco p.l.c. (BAT) ( NYSE: BTI ) , has helped accelerate Organigram’s international expansion. The final tranche saw BAT acquire approximately 7.6 million common shares and 5.3 million Class A preferred shares of Organigram. The purchase, which was CA$3.2203 per share, resulted in gross proceeds of CA$41.5 million. This concluded a three-part investment agreement between the two companies, which was aimed at supporting Organigram’s strategic growth. The funds are being channeled into the “Jupiter” investment pool, a fund designed to enhance Organigram’s international market presence, particularly in the U.S. and overseas. With the pool now fully funded, Organigram has an additional CA$57.8 million available for future investments. Chief Strategy Officer Paolo De Luca commented on the strategic value of the investment, stating, “Opportunities in the space have only improved with cannabis valuations at historically weaker levels…We look forward to continuing our international strategy supported by the Jupiter platform.” Already, Organigram has invested CA$21 million in the German cannabis company Sanity Group and CA$2.7 million in the North Carolina-based cannabinoid manufacturer Open Book Extracts . These investments highlight the company’s commitment to broadening its footprint in the global cannabis industry. In total, the entire funding round, which included the first two tranches that were closed earlier, brings Organigram closer to realizing its goal of establishing a significant presence in the international cannabis market. BAT now holds a considerable stake in Organigram, including 30% of the common shares and all the preferred shares, positioning them as a key partner in the company’s future growth. Top Psychedelic Companies for Week #1: Revive Therapeutics Revive Therapeutics Ltd. ( OTCQB: RVVTF ) ( CSE: RVV ) announced its intent to acquire DiagnaMed Holdings Corp.’s ( CSE: DMED ) ( OTCQB: DGNMF ) intellectual property related to DiagnaMed’s molecular hydrogen program, aiming to develop potential treatments for neurological and mental health disorders from the program. The acquisition is based on a non-binding letter of intent dated February 28, 2025, and is expected to be finalized by the end of March. The acquisition deal includes a provisional patent application filed with the U.S. Patent and Trademark Office. This patent, which was titled “ Methods and Compositions for Producing Hydrogen for Treating Diseases and Disorders Affecting Brain Health ,” details pharmaceutical methods using molecular hydrogen as a therapeutic option for neurological conditions such as Dementia, Parkinson’s disease, Traumatic Brain Injury, Depression, Anxiety, and Post-Traumatic Stress Disorder (PTSD). As part of the deal, Revive will also acquire DiagnaMed’s research assets related to amyotrophic lateral sclerosis (ALS), along with the Orphan Drug Designation, which was granted by the U.S. Food and Drug Administration (FDA) for molecular hydrogen in ALS treatment. Revive’s CEO, Michael Frank, expressed enthusiasm about the deal, stating, “We are excited about advancing the clinical development of molecular hydrogen for brain disorders, specifically as a potential treatment for ALS. The orphan drug designation granted by the FDA for molecular hydrogen in ALS offers hope to patients and families impacted by this debilitating illness.” He further emphasized the company’s commitment to collaborating with ALS researchers, patient advocacy groups, and regulatory experts to ensure a rigorous and expedited path to potential approval. ALS is a progressive neuromuscular disease that leads to paralysis and respiratory failure, with a life expectancy of only two to six years post-diagnosis. With limited treatment options, Revive aims to leverage molecular hydrogen’s antioxidant and anti-inflammatory properties, which have shown promise in mitigating oxidative stress and inflammation, which are key factors in ALS progression. In addition to molecular hydrogen, Revive is exploring other therapies, including bucillamine for nerve agent exposure and long-term COVID, as well as psilocybin-based treatments. However, financial challenges persist. The company recently reported an accumulated deficit of C$67 million as of December 31, 2024, with only C$55,415 in cash reserves and a working capital deficit of over C$3 million. To support its operations, Revive has secured a C$65,000 loan with an 8% annual interest rate. The company’s future depends on securing additional funding or achieving profitability. Despite financial hurdles, the acquisition of DiagnaMed’s molecular hydrogen program marks a significant step in Revive’s pursuit of innovative neurological treatments. #2: Awakn Awakn Life Sciences Corp. ( CSE: AWKN ) ( OTC: AWKNF ) announced it had entered into an agreement to be acquired by Solvonis Therapeutics plc ( LSE: SVNS ) , which is a UK incorporated LSE-listed innovative biotechnology company focused on developing intellectual property and co-developing therapeutics for mental health and substance use disorders. Under the agreement, Solvonis will acquire all outstanding common shares, restricted share units (RSUs), and deferred share units (DSUs) of Awakn. As part of the deal, Awakn shareholders will receive 46.67 Solvonis ordinary shares for each Awakn common share held. The same exchange ratio applies to RSUs and DSUs, while existing Awakn warrants will be converted into Solvonis warrants with adjusted terms. Additionally, Awakn will seek consent from option holders to cancel outstanding stock options. The acquisition offers several advantages for Awakn shareholders, including a 53.52% premium on the company’s share price prior to the deal announcement and a 37.59% premium over the 90-day average price. Additionally, the transaction will strengthen the combined company’s access to capital through Solvonis’ London Stock Exchange listing and enhance its growth potential, leveraging Solvonis’ larger market capitalization and greater financial resources. Upon completion, existing Awakn and Solvonis shareholders will hold approximately 47.47% and 52.53% of the combined company, respectively. The transaction is subject to shareholder and regulatory approvals, including clearance from the UK Financial Conduct Authority and the Supreme Court of British Columbia. Anthony Tennyson, CEO of both Awakn and Solvonis, recused himself from voting on the transaction, which was unanimously approved by the boards of both companies. According to the company, Awakn’s independent Special Committee reviewed the deal and, after consulting financial advisors Evans & Evans, Inc., confirmed that the offer is fair and in the best interest of Awakn shareholders. Over 50% of Awakn shareholders have already agreed to support the transaction, which is expected to close in the second quarter of 2025. Upon completion, Awakn will delist from the Canadian Securities Exchange and cease to be a reporting issuer in Canada. View Comments Terms and Privacy Policy Privacy Dashboard More Info Recommended Stories
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