Cannabis Operators Join Forces Through Business Combinations For More Accretive Transactions

Vertically integrated cannabis operator, Stem Holdings, Inc. (OTCQB: STMH, CSE: STEM) announced that executed a term sheet for a proposed business combination with Headwaters, LLC, a California-based greenhouse cultivator.
“Over the past 12 months, Stem has worked tirelessly to find the right company to transact a business combination with. We could not be more excited about combining forces with Headwaters, LLC,” said Matthew Cohen, CEO of Stem.
About The Transaction
Under Stem's term sheet, the transaction will result in a reverse takeover of the company and, subject to the satisfaction of all listing conditions, the listing of the combined entity on the Canadian Securities Exchange and the OTCQB Venture.
According to a press release, following the closing of the transaction, it is expected …Full story available on Benzinga.com

Israeli Biotech Develops Ketamine Analogue To Treat Major Depression With Promising Results

Israeli-based psychedelics biotech Clearmind Medicine Inc. (NASDAQ: CMND) and partners Bar-Ilan University and Professor Gal Yadid from the Gonda Multidisciplinary Brain Research Center have obtained positive results from the latest preclinical trial on a next-gen psychedelic for the treatment of Major Depressive Disorder (MDD).
See also: EXCLUSIVE: Next-Generation Psychedelics, MEAI – How And Why, An Israeli Scientist Explains
The study evaluated the effects of novel ketamine analogue 2-FDCK, which holds a US pending patent for its use in treating depression, including …Full story available on Benzinga.com

Key Marijuana Executive Changes You Should Know About: Award-Winning TV Personality Joins MMJ Start-Up & More News

As the Benzinga Cannabis Capital Conference returns to Miami (April 11-12), gathering top CEOs, investors and leaders in the cannabis industry, let's scroll through the latest leadership changes within the space.
Emmy Award-Winning TV Personality Joins Cannformatics' Advisory Board
Cannformatics recently announced that Emmy Award-winning TV personality, medical cannabis advocate and entrepreneur Montel Williams has joined its advisory board.
Williams agreed to serve as a media and cannabis industry advisor to the company as it works to complete the final phase of research prior to launching its first commercial service for patients with autism spectrum disorder.
“Montel is joining the board at a perfect time as we prepare for the launch of our first commercial platform,” Dr. Itzhak Kurek, Cannformatics CEO and co-founder said. “We look forward to his advice and counsel as we ramp up outreach to patients, physicians, and the medical cannabis industry.”
Cannformatics is an early-stage biotechnology start-up focused on personalizing medical cannabis treatment through the identification and application of saliva-based Cannabis-Responsive biomarkers.
MariMed Boosts Leadership Team With Two New Additions
MariMed, Inc. (CSE: MRMD) (OTCQX: MRMD) recently tapped two highly accomplished executives to help drive retail and wholesale revenues and product …Full story available on Benzinga.com

Amid Challenges, Analyst Advises Investors To Build Positions: Cannabis Is A Real Industry With $26Bn In 2022 Sales

One of the biggest struggles the cannabis industry still faces is the lack of financial services. Under existing federal law, financial institutions are not allowed to provide their services to marijuana businesses even in states with legal cannabis programs.
When lawmakers decided not to include marijuana banking reform in the National Defense Authorization Act (NDAA) defense bill in December, it became kind of clear that these issues are not going to be resolved anytime soon.
The industry feels this on a regular basis.
And, it's not just a question of marijuana banking reform. The thing is, if the majority of lawmakers are not ready to enact this piece of legislation, they're less likely to support major reform such as medical or recreational marijuana legalization on the federal level.
‘This Is A Real Industry’
Cantor Fitzgerald’s Pablo Zuanic analyzed current state trends in his latest analyst note. He summarized the existing situation as “depressed stock valuations, lack of actual progress on the federal reform front, price deflation in cannabis, and presumably a weakened cannabis consumer (trading down, reducing back size) all make for pretty negative sector read.”
Taking the lack of capital access into account, multi-state operators might see more consolidation moves, Zuanic noted.
“Lest we forget, however, this is a real industry ($26 billion in sales in 2022), generating jobs and tax revenue (companies effectively pay 70% of profits in taxes; add to that sales taxes), and one that continues to grow as more states …Full story available on Benzinga.com

Willie Nelson & Snoop Dogg Once Tried To 'Out Smoke' Each Other, We're All Invited To The Legend's 90th Birthday Jam

The legendary Willie Nelson, who is turning 90 in April, says cannabis is partially to 'blame' for having lived to such a ripe old age.
In the exclusive interview, Nelson told E! News' Francesca Amiker that he can thank marijuana for saving his life.
“Well, it not only saved my life, it probably saved some other people's lives,” he said, “because before I smoked marijuana, I was drinking a lot. And I might have killed a lot of people, too. So I'm just glad that that didn't happen. I'm glad we live through all of the bad times.”
The 10-time Grammy winner is now living “one day at a time” as he prepares to …Full story available on Benzinga.com

Exclusive Brands Opens Its Sixth Cannabis Dispensary In Michigan

Exclusive Brands, Michigan's vertically integrated cannabis company, announced the grand opening of Exclusive Brands’ Lowell adult-use cannabis dispensary, the company’s sixth retail location in the state of Michigan.
The new store’s grand opening event will run from February 3-5, 2023 at 2384 W. Main St., Lowell, MI 49331. The new location will service Lowell’s adult use cannabis customers and will be open from 9 a.m. to 9 p.m. daily. Exclusive Lowell’s grand opening event will feature a ribbon cutting ceremony with live music and speeches from notable members of the community on February 3, 2023 at 4:20 …Full story available on Benzinga.com

Village Farms Shares Slightly Up On $25M Direct Offering, CEO's Ownership Dilution

Village Farms International, Inc.  (NASDAQ: VFF) has completed its previously announced registered direct offering with certain institutional investors for the purchase and sale of an aggregate of 18.4 million shares at $1.35 per share, together with accompanying warrants to purchase up to 18.4 million shares, which have an exercise price of $1.65 per share.
The proceeds from the sale of the common shares are approximately $25 million, before deducting placement agent fees and other offering expenses payable by Village Farms. The warrants will be exercisable beginning on July 30, 2023 and will expire on July 30, 2028. Proceeds from the exercise of all the warrants …Full story available on Benzinga.com

Cloud Cannabis Detroit To Host Grand Opening Party In Celebration Of Recreational Sales

Cloud Cannabis will host a grand opening party at its Detroit retail location to celebrate the beginning of recreational cannabis sales in the city.
The event will take place on February 4, 2023 from 9 a.m. to 9 p.m. at 16001 Mack Ave., featuring a DJ, a food truck, deals on name brand products, special guests, and more. The first 100 customers at the door will receive a free ounce of cannabis flower with the purchase of $50 and by signing up for the company's loyalty program Cloud Club, the second 100 customers at the door will receive a free Wonderbrett 8th with the purchase of $25 and …Full story available on Benzinga.com

Nextleaf Stock Skyrockets On 30% Net Revenue Growth In FY 2022

Nextleaf Solutions Ltd. (OTCQB: OILFF) (CSE:OILS) (FSE:L0MA) released its audited annual financial statements for the fiscal year ended September 30, 2022, revealing net revenue of CA$4.4 million ($3.3 million), a 30% increase compared to 3.4 million in 2021.
FY 2022 Financial Highlights

Gross profit of CA$661,238, compared to a loss of CA$855,029 in 2021.

Loss and comprehensive loss for the year was CA$3.5 million compared to a loss of CA$5.4 million in 2021.

Cash used in operations of CA$802,192

Established distribution in four provinces through government distributors and authorized retailers, and nationally through medical sales partners.

Completed a public offering for gross proceeds of CA$3.2 million under a prospectus supplement dated December 15, …Full story available on Benzinga.com

From Growth To Distress: The Changing Strategy Of U.S. Cannabis M&A

Total U.S. targeted cannabis M&A is down 73.6% from $10.2B for the trailing twelve months ended 1/27/22 to $2.7B for the LTM ended 1/27/23. The first four weeks of 2023 are down even more sharply, off nearly 98% from the same period in 2022.

Two opposite trends are pulling on U.S. M&A volume:

Retrenchment and concentration on cash flow rather than growth. As shown by AYR's (OTC: AYRWF) cancellation of its $55M dispensary purchase in Chicago this week and Curaleaf's (OTC: CURLF) exit from three Western states. The Cresco (OTC: CRLBF)/Columbia Care (OTC: CCHWF) megadeal hangs in the balance, with the arb spread saying that the deal will likely be canceled or recut.
Distressed asset sales: Record tightness in the cannabis capital markets. ongoing pricing compression and inflationary margin pressures are pushing small to midsized companies into liquidity crises, driving increased distressed M&A opportunities for the right buyers.

The rugged operating and financing environment will be healthy …Full story available on Benzinga.com