In this week's "Rising High," The Fly's recurring series focused on cannabis and psychedelic stock news, The Fly looks back on Atai upping its ownership stake in mental health care company COMPASS Pathways, as well as other acquisitions and partnerships.
ATAI INCREASES OWNERSHIP IN COMPASS: Atai Life Sciences (ATAI) announced Monday that it has increased its ownership interest in COMPASS Pathways (CMPS) from 19.4% to 20.8%. The company said, “This equity stake increase is a demonstration of atai’s confidence in COMPASS Pathways and in the potential of COMP360 in mental health care, following the recent COMP360 data in treatment-resistant depression. This solidifies atai’s position as COMPASS’ largest shareholder.”
Following the news, Maxim analyst Michael Okunewitch initiated coverage of Atai Life Sciences with a Buy rating and $25 price target. The analyst said he is positive on the company's pipeline of novel and "de-risked assets" in mental health and central nervous system disease, with compounds targeting treatment-resistant depression, substance use disorder, anxiety, post-traumatic stress disorder, cognitive effects of schizophrenia, and mild traumatic brain injury. Atai's strategy of selecting compounds with prior evidence in humans in areas of high unmet need has established it as not just a leader in psychedelics, but CNS disease more broadly, Okunewitch said.
BODY AND MIND TO ACQUIRE SEASIDE DISPENSARY: Body and Mind (BMMJ) announced Wednesday the entering into of two definitive agreements with Canopy Monterey Bay and the membership interest owners of Canopy to acquire an aggregate of 100% of Canopy, which owns a retail dispensary in the limited license jurisdiction of Seaside, California. The first purchase agreement between BaM's subsidiary, DEP Nevada, Canopy and all of the Sellers provides for the assignment of 80% of the membership interests of Canopy to DEP in exchange for a purchase price of $4.8M comprised of $2.5M in cash and a secured promissory note in the amount of $2.3M bearing interest at a rate of 10% per annum compounded annually and having a maturity date of five years from the effective date of PA #1. The second purchase agreement between DEP and the one continuing Seller provides for the assignment of the remaining 20% of the membership interests of Canopy to DEP following the receipt of the city and state approval under PA #1 in exchange for $1M to be paid in either shares of common stock of BaM or in cash at DEP's sole option if such payment takes place within six months following the execution of PA #1.
FLORA GROWTH SIGNS LICENSING DEAL: Flora Growth (FLGC) announced Monday that the company has signed a licensing agreement with Tonino Lamborghini to produce and distribute Tonino Lamborghini branded cannabis beverages across North America and Colombia under their luxury lifestyle brand. The Tonino Lamborghini product line will be produced through Flora's division and contain CBD and other premium cannabinoids such as cannabigerol. Under the licensing deal, Flora will retain the right of first refusal to produce and distribute any CBD or CBG products globally under the Tonino Lamborghini brand. The products will be produced in Florida initially for sale in U.S. states where CBD ingestible are legal. Flora will be responsible for production and distribution and will target both ecommerce and brick-and-mortar channels.
Additionally on Thursday, Flora Growth announced that its Flora Beauty division has received initial orders for its Mind Naturals and Awe CBD skincare brands. These initial orders are for the Spanish and Mexican markets and will be exported in December. Evergreen CBD has issued an initial purchase order for select Mind Naturals products for the Mexican market, while Amma Spain has issued an initial purchase order for both Mind Naturals and Awe products for the Spanish mFLarket.
IMCC TO ACQUIRE ORANIM PLUS PHARMA: IM Cannabis (IMCC) announced Wednesday that IMC Holdings will acquire 51.3% of the outstanding ordinary shares of Oranim Plus Pharm, an Israeli company holding 99.5% of the rights in Oranim Pharm Partnership, resulting in IMC Holdings holding 51% of the rights in Oranim. Oranim is one of the largest pharmacies selling medical cannabis in Israel and the largest pharmacy selling medical cannabis in the Jerusalem area. Oranim, centrally located in Jerusalem, is a well-established brand with a fourteen-year track record of successfully serving the needs of medical cannabis patients in the area. For the twelve months ending October 31 Oranim generated revenues of approximately $16.5M, with a gross margin from cannabis activity of approximately 25% and positive EBITDA.
KETAMINE ONE PARTNERS WITH COGNETIVITY: KetamineOne Capital (KONEF) announced Thursday that it is entering into a collaborative partnership with Cognetivity Neurosciences to study and develop assessments for depression and post-traumatic stress disorder. In the initial stage of the partnership, Cognetivity and Ketamine One will partner on two separate clinical studies, one for depression and the second for PTSD. Protocols for both studies have received Institutional Review Board approval and patient recruitment is expected to occur in early 2022. Ketamine One's wholly owned subsidiary, KGK Science Inc., will lead the study, while Cognetivity will lead the analysis.
OTHER CANNABIS/PSYCHEDELIC STOCKS: Other publicly-traded companies in the space include Acreage (ACRHF), Akerna (KERN), Aleafia (ALEAF), Awakn Life Sciences (AWKNF), Ayr Wellness (AYRWF), Audacious (AUSAF), Aurora Cannabis (ACB), BC Craft (CRFTF), CanaFarma (CNFHF), Canopy Growth (CGC), RIV Capital (CNPOF), Clever Leaves (CLVR), Columbia Care (CCHWF), CordovaCann (LVRLF), Cresco Labs (CRLBF), Cronos (CRON), CV Sciences (CVSI), Curaleaf (CURLF), CURE Pharmaceutical (CURR), Delic Holdings (DELCF), Delta 9 (DLTNF), Emerald Health (EMHTF), Fire & Flower (FFLWF), FluroTech (FLURF), Gage Growth (GAEGF), General Cannabis (CANN), Goodness Growth (GDNSF), Greenlane (GNLN), Green Thumb (GTBIF), GrowGeneration (GRWG), Harborside (HBORF), Hemp (HEMP), HEXO (HEXO), High Tide (HITI), India Globalization Capital (IGC), Indiva (NDVAF), Inner Spirit (INSHF), Innovative Industrial Properties (IIPR), InterCure (INCR), Khiron Life Sciences (KHRNF), Lowell Farms (LOWLF), Lotus Ventures (LTTSF), MediPharm Labs (MEDIF), MedMen Enterprises (MMNFF), MJardin Group (MJARF), Neptune Wellness (NEPT), Thermic Science (ENDO), Organigram (OGI), Planet 13 (PLNHF), Relmada Therapeutics (RLMD), RYAH Group (RYAHF), Skye Bioscience (SKYE), SLANG Worldwide (SLGWF), Sproutly (SRUTF), Stem Holdings (STMH), Small Pharma (DMTTF), Sundial Growers (SNDL), Sunniva (SNNVF), TerrAscend (TRSSF), Tetra Bio-Pharma (TBPMF), Tilray (TLRY), Trulieve (TCNNF), Valens (VLNCF), Village Farms (VFF), Entourage Health (ETRGF), Zynerba (ZYNE) and 4Front Ventures (FFNTF).