Key Takeaways; Cannabis Sector
- Jushi expands Nevada presence by closing on $53.6M acquisition of NuLeaf.
- American Green is developing its own cryptocurrency.
- Cannabis real estate investor, NewLake, acquired cultivation property in Missouri for $34.0 million.
- InterCure reported record breaking $89 million revenue for 2021.
Key Takeaways; Psychedelic Sector
- Awakn successfully completed phase one of its drug discovery program.
Although the legal cannabis sector has grown swiftly, it is still in its early phases. Nevertheless, the combination of federal legalization delays and unpredictable capital markets disruptors have created a difficult environment that is always changing. Despite these challenges, operators on the other hand, are finding new methods to compete, grow, and advance the sector. Below is a full weekly roundup on the top movers and shakers of the cannabis and psychedelics sectors.
Top Marijuana Companies for Week
On April 07, 2022, Jushi Holdings Inc. (OTC: JUSHF), which is a Florida-based marijuana multistate operator, bolstered its operations in Nevada by the completion of its $53.6 million acquisition of Nevada-based NuLeaf, Inc.
In the Las Vegas area, NuLeaf has two high-performing adult use and medicinal retail dispensaries, as well as one in Lake Tahoe. NuLeaf also owns a third licensed retail dispensary located directly on the Las Vegas Strip that is expected to open in the second quarter. In addition, the company operates a 27,000-square-foot growing plant in Sparks, Nevada, as well as a 13,000-square-foot processing facility in Reno, Nevada.
This is Jushi’s latest move to solidify its position in the $1 billion Nevada industry. Moreover, the NuLeaf acquisition comes on the heels of the recently completed Apothecarium Nevada acquisition. As a result of these acquisitions, Jushi now has four dispensaries in Nevada, three of which are in the Las Vegas area, which is a high tourist-friendly city. The company said that the NuLeaf acquisition will enable Jushi to sell its branded products on the wholesale market in Nevada.
Just a couple of weeks ago, Jushi reported that its total revenue rose 104% in the fourth quarter to $65.9 million over last year and increased 22% sequentially. However, some analysts believe that the company’s revenue was slowing as the year began. But there’s no doubt that the addition of NuLeaf will help bolster those revenue numbers.
#2: American Green
American Green recently completed the second cash payment under the terms of a binding letter of intent (LOI) to acquire VendWeb. The company wants to develop a new crypto coin that will be used in age-verified transactions for alcohol sales at sporting events, concerts, and nightclubs, as well as other age-restricted locations like cannabis dispensaries and smoke shops.
The company said that, The American GreenBack crypto, as designed, would combine biometric data (ID, fingerprint, retinal scan, palm print, etc.) with Know Your Customer (KYC) and Anti-Money Laundering (AML) compliant verification software, all of which would be stored on a single, unalterable blockchain. The company added that only other KYC/AML-verified counterparties will be able to exchange the crypto.
In 2009, American Green, Inc. became the country’s second publicly traded cannabis company. With over 77,000 verified beneficial owners, the company is currently one of the largest cannabis companies in terms of shareholder count. The objective of the company is to be the leader in the cannabis and premium CBD industries. The management hopes that the use of American GreenBack crypto as their proprietary vending solutions will help them achieve that goal.
Connecticut-based NewLake Capital Partners, Inc. (OTC: NLCP) plans to invest as much as $34 million in a marijuana cultivation operation in Missouri. On Wednesday, April 06, 2022, the company announced the completion of part one of a three-part commitment for a cultivation property in Missouri. Part of the commitment include, the purchase of a 40,000-square-foot industrial property in O’Fallon, Missouri, and the signing of a long-term, triple-net lease with an affiliate of C3 Industries, Inc, which is guaranteeing the lease.
The $34.0 million aggregate commitment from NewLake will be split into three parts. Part one begins with NewLake’s $7.3 million purchase of the company’s flagship Missouri cultivation facility, along with a pledge to pay an additional $5.2 million to finish construction by June 2022.
Part two helps to fund a proposed expansion of the facility by providing up to $16.5 million to buy an adjacent piece of property and build a 65,000 square foot cultivation facility (subject to normal and customary closing conditions and regulatory approvals). The combined property will be a state-of-the-art 105,000 square foot growing facility once completed. Finally, part three is a $5.0 million interest-only loan that can be accessed over the next year.
NewLake CEO David Weinstein said in the press release that the company is making the investment because it has been impressed by C3 Industries’ success in limited-license states such as Michigan and Oregon.
NewLake, which went public, last year, trades on the U.S. over-the-counter (OTC) markets as NLCP.
Israeli-based cannabis company InterCure Ltd. (NASDAQ: INCR), also known as Canndoc, reported its financial and operating results for the fourth quarter and year ending December 31, 2021 on April 06, 2022.
InterCure announced revenue of $33 million (NIS 80 million), which was higher than preliminary figures and three times that of the fourth quarter of 2020, indicating a 29% sequential growth. In addition, the expected net income was $1 million (NIS 3 million) for the quarter.
InterCure also reported revenue and adjusted EBITDA for fiscal year 2021 of $89 million (NIS 220 million) and $23 million (NIS 55 million), respectively, indicating increases of 230% and 250% year over year. Also for 2021, the expected net income was $5 million (NIS 13 million). In addition, the company said it had $89 million (NIS 217 million) in cash at the end of the year.
InterCure also said it received 5.2 million shares back from the sponsor of its SPAC transaction in the third quarter. The shares were susceptible to forfeiture from the SPAC sponsor depending on share price target conditions, according to the agreement. Nonetheless, the free return of the shares to the company provided a considerable value of about $56 million to all InterCure shareholders based on the current share price.
Since the quarter ended, InterCure has struck a definitive agreement with Altman Health, which is the leading Israeli wellness brand with over 1,700 points of sale that focus on the new Israeli CBD product market. In addition, the company added three new medical cannabis devoted pharmacies to its chain, bringing the total number of retail locations in Israel to 23, with 15 of them currently dispensing medical cannabis.
Top Psychedelic Company for Week
On April 6, 2022, Awakn Life Sciences Corp. (NEO: AWKN) (OTC: AWKNF), a biotechnology company focused on researching, developing, and delivering revolutionary therapeutics to treat addiction, announced the successful completion of phase one of its new chemical entity (NCE) development program. This key development bolsters Awakn’s pipeline for the treatment of a wide range of both substance and behavioral addictions.
Awakn announced that it had completed a hit to lead program that met its primary objectives of finding and patenting novel chemistry scaffolds. In addition, the company said that it had also established drug discovery assays that have the potential to make lead optimization more efficient.
This historic discovery by Awakn is an important first step toward the development of new, faster-acting, and safer entactogenic medications for the market.
During this NCE development program, several chemical scaffolds were identified using a combination of computational screening and medicinal chemistry techniques, as well as in vitro pharmacology and DMPK testing. And as a result of this successful research, several patents have now been filed with several of these chemical scaffolds, demonstrating in vivo activity and offering a great starting point for lead optimization.
This announcement builds on Awakn’s acquisition in March 2021 of a significant body of proprietary research from Prof. Nutt’s Equasy Enterprises, which included details of newly discovered actions of MDMA and gave Awakn an advantageous starting point for this phase of development.