Here’s What You Missed in Cannabis, Psychedelics This Week

In this week’s “Rising High,” The Fly’s recurring series focused on cannabis and psychedelic stock news, The Fly looks back on earnings, an IND approval and a licensing agreement.

AVANT BRANDS REPORTS Q2 EARNINGS: On Monday, Avant Brands (AVTBF) reported second quarter net revenue of C$8.3M, up 4% from the same period last year. The company also reported Q2 adjusted net income of C$1.4M compared to an adjusted net loss of (C$280,000) for the same period last year. CEO Norton Singhavon commented, “Avant Brands is on a strong trajectory, and our Q2 results demonstrate the effectiveness of our strategic initiatives. We are capitalizing on the growing international demand for premium cannabis products, while also achieving record profitability. With a focus on international markets and operational excellence, we are well-positioned for long-term success.” The company added, “Avant’s international strategy has reached a significant milestone, with international sales surpassing domestic adult-use sales for the first time in Q2. This achievement highlights the growing global demand for premium cannabis and Avant’s strategic positioning to capitalize on this opportunity. Management is confident in the continued expansion of Avant’s international footprint. The company has executed a total of 9 international agreements fiscal year to date, with products already shipped to one client and shipments pending for a further 5 clients. These new clients represent near-term growth potential spanning key territories such as Australia, Germany, and Israel, along with new opportunities developing in the Czech Republic, Poland, Portugal, Switzerland, and the UK. These markets, with a combined population exceeding 250 million, present a substantial growth opportunity for Avant.” (read more)

CLEARMIND OBTAINS IND APPROVAL FOR PHASE I/IIA TRIAL: Clearmind Medicine (CMND) announced Tuesday that the U.S. Food and Drug Administration has cleared the company’s Investigational New Drug application for its proprietary MEAI-based CMND-100 oral capsule, allowing the company to proceed with a Phase I/IIa clinical trial in the United States for treating patients with alcohol use disorder. While the Phase I/IIa clinical trial was already approved in Israel, clearance from the FDA will allow the trial to be initiated in the U.S. The Phase I/IIa clinical trial is a multinational, multi-center, single and multiple dose, tolerability, safety and pharmacokinetic trial of CMND-100 in healthy volunteers and AUD subjects. The company has signed agreements to perform the Phase I/IIa clinical trial in leading universities in the United States, Yale School of Medicine’s and the Johns Hopkins University School of Medicine. The Israeli trial will be conducted at the IMCA in the Tel Aviv suburb of Ramat Gan. The primary endpoint of the Phase I/IIa clinical trial is to find the tolerable dose and characterize the safety and pharmacokinetics / pharmacodynamics of single and repeated doses of CMND-100 in healthy subjects and those with AUD. The secondary endpoint is to evaluate preliminary efficacy of CMND-100 in reduction of drinking patterns and cravings in individuals with moderate-to-severe AUD. Oral capsules will be administered and subjects treated by these oral capsules will report their drinking patterns and cravings for alcohol during the clinical trial. (read more)

Additionally on Tuesday, Clearmind Medicine announced that it has submitted an additional patent application with the United States Patent and Trademark Office, as part of its ongoing collaborations with SciSparc (SPRC). The patent application refers to the novel proprietary composition of Clearmind’s MEAI compound with Palmitoylethanolamide, the active ingredient of SciSparc’s proprietary CannAmide, for treating metabolic syndrome and obesity. (read more)

ENVERIC, ARIES ENTER LICENSING AGREEMENT: Enveric Biosciences (ENVB) and Aries Science & Technology announced Monday a licensing agreement for the clinical development of Enveric’s patented radiation dermatitis topical product. Radiation dermatitis is a side effect of radiation treatment that impacts roughly two million cancer patients per year and has a market opportunity estimated at $400M annually. The formulation licensed to Aries is protected by an allowed U.S. patent application, as well as a pending PCT application. Under the terms of the agreement, executed through Enveric’s subsidiary, Akos Biosciences, Enveric will be eligible to receive aggregate milestone payments of up to $61M, as well as tiered royalties ranging from 2.5% to 10% on future sales, if all conditions are met. (read more)

IGC PHARMA INITIATED WITH BUY: Alliance Global Partners initiated coverage of IGC Pharma (IGC) on Wednesday with a Buy rating and $3.50 price target. The firm’s price target is based on expectations for IGC-AD1 for the treatment of agitation in Alzheimer’s Disease, noting that IGC-AD1 is a natural cannabidiol-based formulation utilizing low doses of tetrahydrocannabinol, or THC, as its active component. The firm values IGC-AD1 at $3 per share and the company’s OTC compounds and preclinical compounds, as well as the underlying technology and cash at 50c per share, the analyst noted. (read more)

ORGANIGRAM, SNDL ASSUMED WITH SPECULATIVE BUY: On Wednesday, Canaccord assumed coverage of SNDL (SNDL) with an unchanged Speculative Buy rating and unchanged $3.25 price target. SNDL has developed a diversified operating platform with exposure to Canadian cannabis production, retail, private liquor retail and a strategic investment portfolio through a robust M&A pipeline, the analyst said. (read more)

Additionally on Wednesday, Canaccord assumed coverage of Organigram (OGI) with an unchanged Speculative Buy rating and unchanged C$3.25 price target. The firm maintains “a cautiously positive outlook” as the company continues to hold a leading foothold in the fragmented Canadian adult-use cannabis market, the analyst said. (read more)

CANNABIS/PSYCHEDELIC STOCKS: Publicly-traded companies in the space include Acreage (ACRHF), Ascend Wellness (AAWH), Atai Life Sciences (ATAI), Aurora Cannabis (ACB), Ayr Wellness (AYRWF), Avant Brands (AVTBF), BZAM (BZAMF), Cannabist Company (CBSTF), Cannara Biotech (LOVFF), Canopy Growth (CGC), Chicago Atlantic (REFI), Clever Leaves (CLVR), Compass Pathways (CMPS), CordovaCann (LVRLF), Cresco Labs (CRLBF), Cronos Group (CRON), Curaleaf (CURLF), CURE Pharmaceutical (CURR), CV Sciences (CVSI), Cybin (CYBN), Delta 9 (DLTNF), Entourage Health (ETRGF), Fire & Flower (FFLWF), Flora Growth (FLGC), Trees Corporation (CANN), Greenlane (GNLN), Green Thumb (GTBIF), GrowGeneration (GRWG), Hemp (HEMP), Heritage Cannabis (HERTF), High Tide (HITI), IM Cannabis (IMCC), Indiva (NDVAF), Innovative Industrial Properties (IIPR), InterCure (INCR), Lotus Ventures (LTTSF), Lowell Farms (LOWLF), Lucy Scientific Discovery (LSDI), MediPharm (MEDIF), MedMen (MMNFF), MindMed (MNMD), NewLake Capital (NLCP), Numinus (NUMIF), Optimi Health (OPTHF), Planet 13 (PLNHF), Red White & Bloom (RWBYF), Relmada Therapeutics (RLMD), Reunion Neuroscience (REUN), Revitalist (RVLWF), RIV Capital (CNPOF), RYAH Group (RYAHF), Safe Harbor Financial (SHFS), Sproutly (SRUTF), Skye Biosciences (SKYE), Stem Holdings (STMH), Sunniva (SNNVF), TerrAscend (TRSSF), Tetra Bio-Pharma (TBPMF), Tilray (TLRY), Trulieve (TCNNF), Tryp Therapeutics (TRYPF), Verano (VRNOF), Village Farms (VFF), Vireo Health (VREOF), Zynerba (ZYNE) and 4Front Ventures (FFNTF).