Weekly Roundup on the Cannabis Sector & Psychedelic Sector
Key Takeaways; Cannabis Sector
Canopy Growth launched Wana gummies at their medical store; The company also announced the date for the release of Q1 fiscal 2024 financial results.
Tilray surged over 20% on Wednesday after the company beat revenue estimates.
22nd Century announced strategic changes to enhance leadership and strengthen financial position.
Key Takeaways; Psychedelic Sector
Awakn’s Prof. Celia Morgan made a groundbreaking presentation at this year’s PSYCH Symposium.
Below is a weekly roundup on 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 Week
#1: Canopy Growth
Canopy Growth Corporation (NASDAQ: CGC), one of the leading cannabis companies in the world, took another significant step in expanding its product offerings for Canadian medical patients. The company recently announced that it has made cannabis-infused gummies from Wana Brands, the foremost edibles company in North America, available through its medical cannabis division, Spectrum Therapeutics.
The move comes after Canopy Growth assumed control of all distribution, marketing, and sales of Wana’s renowned edible cannabis products in Canada. According to the company, this strategic decision highlights the strength of Canopy Growth’s North American house of brands and demonstrates the company’s commitment to providing a diverse and high-quality range of cannabis products to its customers.
David Klein, CEO of Canopy Growth, expressed enthusiasm for the collaboration, stating, “The addition of Wana gummies to our medical store provides an immediate benefit to our Canadian business and further solidifies our North American house of brands. Over the coming months, we look forward to growing Wana’s market share across both the medical and adult-use markets in Canada.”
This collaboration between Canopy Growth and Wana Brands is likely to be well-received by the Canadian medical cannabis community, offering patients more options to incorporate cannabis into their treatment plans. Additionally, as the adult-use market in Canada evolves, the availability of these popular edibles could also contribute to Canopy Growth’s success in meeting the needs of recreational consumers.
In other news, the company announced it will release its financial results for the first quarter fiscal year 2024 ended June 30, 2023, after markets closes on August 9, 2023. Furthermore, Canopy stated that following the release of the financial results, the company will host an investors’ audio webcast that will be hosted by CEO, David Klein and CFO, Judy Hong, on August 9, at 5:30 PM Eastern Time.
#2: Tilray
Tilray Brands Inc. (NASDAQ: TLRY) surprised investors with impressive financial results for the fourth quarter ending May 31. The company’s stock surged more than 20% following the announcement, as Tilray reported significant boosts in revenue and adjusted EBITDA, coupled with a reduced net loss compared to previous quarters.
Tilray posted a remarkable net revenue of $184 million for the fourth quarter, representing a significant 20% year-over-year growth. The figure surpassed the average estimate of $153.6 million projected by Yahoo analysts, amounting to a $30-million revenue beat.
Despite facing a net loss of $120 million in the fourth quarter, Tilray demonstrated significant improvement compared to the same period in the previous year when the net loss amounted to a staggering $458 million.
Additionally, in the fourth quarter, adjusted EBITDA surged by 93% to $22 million, compared to $12 million in the same quarter of the previous year. For the entire fiscal year 2023, adjusted EBITDA grew 28% to reach $61 million, compared to $48 million in the prior fiscal year. These impressive figures demonstrate Tilray’s resilience in an industry that has been facing significant challenges.
Tilray’s CEO and Chairman, Irwin Simon, expressed satisfaction with the company’s performance, stating, “We delivered on our commitment to generate positive adjusted free cash flow across all business segments, and executed against our strategic plan to grow revenue, drive operating efficiencies, and improve margins and profitability, all while investing in our industry-leading brands.”
Looking ahead, Tilray is optimistic about its future prospects. The company anticipates adjusted EBITDA of $68 million to $78 million for fiscal year 2024, representing an 11% to 27% growth compared to the full-year 2023 results. Additionally, Tilray expects to continue generating positive adjusted free cash flow, further solidifying its financial position.
#3: 22nd Century
22nd Century Group, Inc. (NASDAQ: XXII), a company focused on innovative plant technologies in the tobacco and cannabis industries, recently announced significant changes in its leadership and financial structure.
The company reported that John Miller, the leader of the tobacco business unit, had been appointed as the interim Chief Executive Officer (CEO), replacing James A. Mish, who had served as CEO since June 2020. Furthermore, 22nd Century stated that, despite stepping down from the CEO position, James A. Mish will continue to contribute to the company’s growth as a member of the Board of Directors.
This leadership change comes at a critical time for 22nd Century Group as it embarks on new initiatives to strengthen its financial position and drive innovation in the tobacco harm reduction and health and wellness markets. As part of its effort to secure additional funds, the company successfully obtained $11.7 million in gross proceeds from registered direct financing. This capital infusion will undoubtedly support the company’s various research and development efforts in creating novel products with potential harm-reduction properties.
Moreover, the company announced the commencement of an estimated $15 million annualized cost reduction initiative. Cost optimization is a crucial strategy for businesses seeking to improve profitability and efficiency, and 22nd Century Group’s decision to undertake this initiative demonstrates its commitment to financial discipline and long-term sustainability.
Alongside the leadership changes and financial developments, 22nd Century Group expanded its Board of Directors by appointing Andrew Arno, a seasoned Wall Street veteran, as an independent director. According to the company, this addition brings valuable expertise to the board and will likely strengthen the company’s decision-making capabilities and governance practices.
In addition to these strategic moves, 22nd Century regained compliance with the NASDAQ marketplace regarding its stock selling price. In an effort to boost the stock price, the company engaged in a 1-for-15 reverse stock split at the beginning of July. This move demonstrated the company’s commitment to maintaining its listing on the Nasdaq Stock Market and provided investors with greater confidence in the company’s financial standing.
Top Psychedelic Company for Week
#1: Awakn
Awakn Life Sciences Corp. (OTC: AWKNF), a leading company in the field of psychedelic medicine, has been at the forefront of research on Ketamine-Assisted Therapy (KAT). Under the guidance of Professor Celia Morgan, a distinguished expert in addiction research, Awakn has been exploring the application of KAT for Alcohol Use Disorder (AUD) and behavioral addictions.
During this year’s PSYCH Symposium, Professor Celia Morgan delivered an enlightening presentation on Awakn’s groundbreaking research on KAT. The focus of the discussion was on the treatment of Alcohol Use Disorder, a pervasive problem affecting millions of people worldwide, as well as behavioral addictions, which are increasingly recognized as significant mental health challenges.
Professor Celia Morgan’s presentation at the PsychSymposium on Awakn’s Ketamine-Assisted Therapy represents a significant milestone in addiction treatment research. The preliminary findings offer hope for individuals grappling with Alcohol Use Disorder and behavioral addictions. As the field of psychedelic medicine continues to evolve, collaboration between academia, industry, and regulatory authorities will be crucial in unlocking the full potential of Ketamine-Assisted Therapy and other psychedelic interventions. Ultimately, the goal is to provide effective and evidence-based treatments that can alleviate the burden of addiction and improve the lives of countless individuals.
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