Staff
It’s time for your Daily Hit of cannabis financial news for January 27, 2022.
On The Site
Cybin
Since opening its doors in 2019, Cybin, Inc., (NYSE: CYBN) based in Toronto, Ontario Canada has been on a mission to build a business in novel drug discovery (focusing on psilocybin and DMT), drug delivery systems, and treatment. It’s been on a fast track to make good on that mission.
The company was the first psychedelics companies to be traded on the NYSE; it consistently makes business and stock watcher’s lists as one of the top psychedelics companies to watch; and it has 15 patent filings covering a wide range of novel psychedelic compounds from different classes, including targeted structural modifications to improve the drug pharmacokinetic characteristics and safety profiles without altering receptor binding.
BC Craft
BC Craft Supply Co. Ltd., (CSE: CRFT) (OTC: CRFTF) live to see another day after declaring bankruptcy earlier this week. The Canadian cannabis company filed filed a Notice of Intention on January 25th to make a Proposal under the Bankruptcy & Insolvency Act. The company remained open while it sought to restructure its debts. Now it seems Avro Capital Corp. has stepped up to provide an interim financing facility which was approved by the Supreme Court of British Columbia.
Delivery
The Covid pandemic has been impacting our economy in so many ways for such a while now that it’s hard to parse which marketplace developments are driven by a climate of uncertainty and crisis versus a myriad of other factors. Online ordering and delivery, which was already gaining ground as a popular mode of consumerism pre-pandemic, received a massive boost in popularity from the endless restrictions that Covid-19 has placed on our daily lives. But delivery’s spiking popularity is not solely due to attempts at avoiding Covid infection. Meadow co-founder David Hua, who notes that retail cannabis deliveries went up 50% in 2021 from 2020, anticipates that the continued growth of this trend will see ongoing benefits beyond staying Covid-free. These include heightened delivery times and expanded access to a greater range of offerings for consumers, while businesses can expect to see increases in the size of their customer base and boosted sales.
Jushi
Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) has closed a non-brokered private placement raising $10 million as the company’s shares have begun to lift from its 52 week low of $2.95 and shares were lately trading at $3.56. The offering of 2,717,392 subordinate voting shares were sold at a price of $3.68 per share to Graticule Asset Management Asia for gross proceeds of $10 million. Jushi said the funds will be used for potential strategic acquisitions and general corporate purposes. As of December 31, 2021, the company’s pro forma cash balance, including proceeds from the Offering, was approximately $104 million.
TSUMo
TSUMo Snacks announced today that it raised a $4M Seed round led by Casa Verde. The new cannabis brand aims to elevate the way people consume THC through its innovative salty & savory snack offerings. “This capital will be used to supercharge TSUMo’s product roadmap as the brand continues to fill a need for differentiated infused products in a space dominated by sweet-centric offerings,” says Yoni Meyer, a Partner at Casa Verde.
In Other News
High Tide
High Tide Inc. (NASDAQ: HITI) announced its year end unaudited 2021 financial results on January 27, 2022. However, due to personnel challenges arising from the pandemic, the company has not been able to finalize its income tax provision to date. Revenue increased by 118% to $181.1 million for the year ended October 31, 2021, and increased sequentially by 12% to $53.9 million in the fourth quarter of 2021. Note that the quarter only includes 12 days of contribution from Blessed CBD, and does not include any contribution from NuLeaf Naturals. The Company is forecasting to generate revenue for the first fiscal quarter of 2022 in excess of $70 million which, as of today, would be the third-highest quarterly revenue figure achieved by a Canadian cannabis company.
MedMen
MedMen Enterprises Inc. announced the appointment of Tyson Rossi to the role of Chief Strategy Officer. Rossi has been a member of MedMen’s executive management team since 2019, most recently serving as Senior Vice President, Product and Revenue. Rossi co-founded a number of cannabis ventures, including Arizona-based multistate craft edibles company Flourish Cannabis; Bōdee Holdings, Inc., a privately held cannabis company headquartered in Phoenix, Arizona; and Los Angeles-based Edible Solutions, a leading consulting agency in the cannabis industry.
