In this week's "Rising High," The Fly's recurring series focused on cannabis and psychedelic stock news, The Fly looks back on an acquisition, licensing and cost reduction actions.
TRULIEVE ACQUIRES GREENHOUSE WELLNESS WEST VIRGINIA: Trulieve Cannabis (TCNNF) announced Wednesday the closing of the acquisition of Greenhouse Wellness West Virginia Dispensaries, holder of a West Virginia dispensary permit. Trulieve paid an immaterial amount of cash consideration for the transaction. Greenhouse was awarded the dispensary permit in Martinsburg, West Virginia, in January 2021. This location, combined with Trulieve's nine other dispensary permits, are spread across many of the most populous areas in the state. Trulieve currently operates medical dispensaries in Morgantown and Weston. Several new locations are slated to open throughout the state in the coming months. "This acquisition broadens our ever-expanding presence in West Virginia," said CEO Kim Rivers. “We now have cultivation, processing and 10 dispensary permits in the state. Trulieve is committed to investing in communities where we operate and will serve West Virginia patients by offering expanded access to high quality products and providing exceptional customer experiences." The transaction has been approved by the West Virginia Department of Health and Human Resources.
CLEVER LEAVES GERMANY BECOMES FULLY-LICENSED DISTRIBUTOR: Clever Leaves Holdings (CLVR) announced Wednesday that its affiliate in Germany, Clever Leaves Germany GmbH, has received all of the required regulatory licenses, permits and certifications by the German authorities to be able to distribute medical cannabis to wholesalers and around 20,000 pharmacies located in Germany. The company’s licenses, permits, and certifications in Germany include a wholesale distribution license granted according to §52a under the German Medicinal Products Act, a Certificate of Good Distribution Practice and a Permit for the trade in narcotic drugs as per §3 of the German Narcotic Drugs Act. “Germany is one of the most important international markets for Clever Leaves. We have been developing our regulatory foundation and are confident that the suite of licenses, permits, and certifications obtained will support our platform to continue penetrating such an important market,” said CEO Andres Fajardo. “Our local team’s expertise and experience in the pharmaceutical and medical cannabis industries will enable Clever Leaves Germany to act as a reliable partner that meets the high-quality standards and regulations of the German market and of our clients.”
CANOPY GROWTH IMPLEMENTS COST REDUCTION ACTIONS: Canopy Growth (CGC) announced Tuesday that the company is undertaking a series of initiatives to reduce costs and drive efficiency in order to accelerate its path to profitability. Aligned to Canopy Growth's FY23 strategic review, the company is conducting the following actions: reducing cost of goods sold in the company's Canadian cannabis business by lowering per-gram cultivation costs through increased cultivation-related efficiencies and facility improvements; implementing a flexible manufacturing platform inclusive of contract manufacturing for certain product formats; rightsizing indirect costs and generating efficiencies across the Company's supply chain and procurement; aligning selling, general and administrative costs with short-term business expectations by reducing third-party professional fees and office costs; and Further streamlining the organization to drive process-related efficiencies. As a result of these changes to the organizational structure, team members will be impacted as the company operates with a reduced headcount moving forward. Management expects to generate COGS savings of C$30M - C$50M and reduce SG&A expenses by C$70M - C$100M within 12 - 18 months. These savings are incremental to the previously announced cost savings of C$150M-C$200M, of which the majority have already been achieved. As a result of these strategic changes, management anticipates charges between C$250M - C$300M in Q4, the majority of which will be non-cash and relate to the write-down of excess inventory balances as well as "property, plant and equipment" impairments. Further, the company expects to incur between C$100M - C$250M in non-cash impairment charges in Q4, largely driven by goodwill and intangible asset impairments.
MEDMEN APPOINTS NEW CEO: MedMen Enterprises (MMNFF) announced the appointment of Edward Record as CEO on Wednesday, effective immediately. Record succeeds interim CEO Michael Serruya, who will continue to serve as Chairman of the Board. Record joined MedMen’s Board of Directors in 2021. He previously served as the CFO for Hudson's Bay Company. The company also announced it has received notification from Roz Lipsey, COO, of her decision to resign, effective May 20, 2022.
SKYE ENGAGES CLINICAL TRIAL SITE FOR PHASE 1 STUDY: Skye Bioscience (SKYE) announced Thursday it has retained CMAX Clinical Research to facilitate enrollment of and drug administration to healthy volunteers for Skye’s Phase 1 study of its lead product candidate, SBI-100 Ophthalmic Emulsion. This study will be conducted in CMAX’s purpose-built independent clinical trial facility in Adelaide, Australia. SBI-100 OE is being developed to potentially treat glaucoma. “CMAX, along with our principal investigator, Professor Shakib, are highly capable with decades of experience in conducting first-in-human clinical trials. They are excellent complements to our recently selected contract research organization for this study, Novotech,” said Tu Diep, Chief Development Officer of Skye. “We are on track to begin enrolling subjects in the second quarter.” CMAX will conduct Skye’s single ascending dose and multiple ascending dose Phase 1 study in healthy volunteers, evaluating safety and pharmacokinetics of SBI-100 OE under Good Clinical Practice. Final data from this study is expected in Q4 of this year.
OTHER CANNABIS/PSYCHEDELIC STOCKS: Publicly-traded companies in the space include Acreage (ACRHF), Akerna (KERN), Aleafia (ALEAF), Atai Life Sciences (ATAI), Awakn Life Sciences (AWKNF), Audacious (AUSAF), Aurora Cannabis (ACB), AYR Wellness (AYRWF), BC Craft (CRFTF), Body and Mind (BMMJ), CanaFarma (CNFHF), Cannara Biotech (LOVFF), RIV Capital (CNPOF), Chicago Atlantic (REFI), Columbia Care (CCHWF), CordovaCann (LVRLF), Cresco Labs (CRLBF), Cronos Group (CRON), Compass Pathways (CMPS), CV Sciences (CVSI), Curaleaf (CURLF), CURE Pharmaceutical (CURR), Delic Holdings (DELCF), Delta 9 (DLTNF), Fire & Flower (FFLWF), Flora Growth (FLGC), 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), Innovative Industrial Properties (IIPR), IM Cannabis (IMCC), India Globalization Capital (IGC), Indiva (NDVAF), InterCure (INCR), Wellbeing Digital (KONEF), Khiron Life Sciences (KHRNF), Lowell Farms (LOWLF), Lotus Ventures (LTTSF), MediPharm (MEDIF), MJardin Group (MJARF), Neptune Wellness (NEPT), NewLake Capital (NLCP), Thermic Science (ENDO), Organigram (OGI), Planet 13 (PLNHF), Relmada (RLMD), RYAH Group (RYAHF), Sproutly (SRUTF), Stem Holdings (STMH), Small Pharma (DMTTF), Sundial Growers (SNDL), Sunniva (SNNVF), TerrAscend (TRSSF), Tetra Bio-Pharma (TBPMF), Tilray (TLRY), Valens (VLNCF), Verano Holdings (VRNOF), Village Farms (VFF), Wesana Health (WSNAF), Entourage Health (ETRGF), Zynerba (ZYNE) and 4Front Ventures (FFNTF).
Trulieve Cannabis
-0.91 (-5.69%)
Clever Leaves
-0.055 (-3.75%)
Canopy Growth
-0.125 (-2.39%)
MedMen
+
Skye Bioscience
+
Aurora Cannabis
-0.11 (-3.75%)
CV Sciences
+
CannTrust
+
Cronos Group
-0.05 (-1.71%)
Trees Corporation
+
Goodness Growth
-0.09 (-5.26%)
Green Thumb Industries
-1.18 (-7.54%)
IGC Pharma
+
Tilray
-0.15 (-3.00%)
ZYNE
+
Atai Life Sciences
-0.195 (-4.24%)
Compass Pathways
-0.655 (-6.42%)
Relmada Therapeutics
-0.91 (-3.75%)