Rising High: RIV Capital provides update on revenue, synergy realization

In this week’s “Rising High,” The Fly’s recurring series focused on cannabis and psychedelic stock news, The Fly looks back on an operational update, a product partnership and a supply agreement.

RIV CAPITAL PROVIDES UPDATE ON REVENUE, SYNERGY REALIZATION: RIV Capital (CNPOF) announced Thursday an operational update highlighting the company’s recent achievements ahead of its business combination with Cansortium (CNTMF). Based on preliminary estimates of financial results, year-to-date net revenue, as of October 23, doubled compared to the same period in the prior calendar year, with substantial growth in Q3 and momentum expected to continue to build in Q4. In step with the company’s revenues for Q3, several additional milestones were achieved in Q3, including a record number of retail transactions, wholesale retail accounts and bulk buyers. This was supported by the operationalization of two additional co-located adult-use retail dispensaries located in Kingston and Manhattan at the end of the Q3. The company also expanded its wholesale business to over 50 customers, enhancing market reach and further strengthening relationships within the industry. Additionally, RIV Capital executed a distribution partnership agreement on October 16 with Siban Holdings to support the expansion of the company’s wholesale division that is anticipated to commence in Q4. The partnership is expected to strengthen retailer service levels, increases delivery frequency and expands statewide third-party retailer coverage in New York. The company also reported initial pre-closing cost savings and synergies were realized at a faster pace than initially anticipated, which better positions the company for a more efficient integration with Cansortium following the closing of the combination.

“Q3 marked a turning point for RIV Capital and its shareholders as the team translated strategy and execution into a record setting year. We expect the acceleration of our revenue growth to continue in Q4 as we further optimize and unlock the potential of our company owned retail stores while concurrently scaling our wholesale business in-step with the rapid expansion of dispensary licenses issued by the Office of Cannabis Management in New York,” said Dave Vautrin, interim CEO. “As a testament to our step change in cultivation output, we have also experienced a material uptick in premium bulk flower sales to leading New York brands. Beyond the Company’s retail store progress, expanding our wholesale business and premium bulk demand, outperforming our anticipated timeline for pre-closing synergies positions us for both a record finish to the year on many levels and a substantially more efficient operational integration with Cansortium following the closing of the Business Combination.”

GREEN THUMB EXPANDS PARTNERSHIP WITH MAGNOLIA:  incredibles, a cannabis edibles brand from Green Thumb Industries (GTBIF), announced Monday the expansion of its partnership with New York City’s Magnolia Bakery. Beginning this week, incredibles x Magnolia Bakery THC-infused bars featuring the bakery’s flavors and incredibles’ chocolate will be available to cannabis medical patients and adult-use customers at RISE Dispensaries in New York, with online availability by the end of the month. Wider dispensary availability will follow in New Jersey and additional markets. Fans of both brands can satisfy their sweet tooth with the Swirled Famous Banana Pudding Bar, a swirl of creamy vanilla pudding, crunchy vanilla cookies and freeze-dried bananas, or the Red Velvet Piece Ahhh Cake 1:1 Bar, with flavors of moist crimson cake, cream cheese tang and rich dark chocolate.

“Magnolia Bakery has been a New York institution for nearly 30 years, and after the overwhelming response to our collaboration chocolate bars last year, we’re thrilled to bring them home to New York and New Jersey,” said Dominic O’Brien, SVP of Revenue at Green Thumb. “We’re equally excited to make these unique, flavor-packed cannabis treats accessible to even more adults 21+ across the country through our website and local delivery. These chocolate bars are the best tasting edibles out there – we can’t wait to share them with Americans this fall.”

CURALEAF URGES UK GOVERNMENT TO TAKE ACTION: Curaleaf International (CURLF) announced Thursday it is urging the UK government to take immediate action against the rapidly growing online illicit cannabis market, which is allowing street cannabis to be sold from unregulated and unpoliced websites and platforms. Curaleaf’s latest report reveals that illegal online cannabis sales via the open and dark web have risen by 50% in the past two years and increased by 67% across open web retailers. Curaleaf’s report, developed in partnership with Manchester Metropolitan University, also found that illegal cannabis is often contaminated with dangerous substances such as mold, lead, and synthetic cannabinoids, posing severe health risks to the 1.8M people in the UK who use the product to self-treat medical conditions.

The company said, “Curaleaf International advocates for a holistic reform strategy that encompasses: Tightened Regulation of Illegal Channels: Strengthening enforcement against unlicensed online sales and dark web activity to protect consumers from unregulated and potentially dangerous products. Public Awareness Initiatives: Launching comprehensive campaigns to educate the public on the risks associated with unregulated cannabis products and the advantages of the existing legal medical cannabis market. These campaigns will ensure patients make informed choices based on reliable information about regulated medical cannabis, which meets stringent safety and quality standards, unlike illicit products. Policy Changes to Improve Patient Access to Medicine: Simple regulatory and policy changes could significantly improve patient access to medical cannabis. For instance, enabling electronic prescribing of cannabis medicines would reduce the bureaucracy imposed on doctors and improve the efficiency of medicine dispensing. Expanded Research into Medical Cannabis: Promoting further clinical research to unlock the full therapeutic potential of cannabis. As a leader in the industry, Curaleaf International is already pioneering studies to advance the understanding of how medical cannabis affects patients with a range of diagnosed medical conditions, where other treatments have not provided relief.”

Additionally on Wednesday, Curaleaf announced it opened a new medical dispensary in Miami, Florida. Curaleaf Miami Bird Road opened its doors to medical patients on October 23. The company’s newest dispensary brings its Florida store count to 66 locations, with 151 dispensaries total across the U.S.

PHARMALA TO SUPPLY MT. SINAI WITH MDMA: PharmAla Biotech (MDXXF) announced Monday that it has been contracted as a supplier of its GMP LaNeo MDMA to a clinical trial at Mt. Sinai Health System.

“We’re looking forward to supporting the team at Mt. Sinai Health System with high quality clinical trial drug product,” said Nicholas Kadysh, CEO. “Sinai houses some of the best researchers in the world, executes a significant amount of work for the Veterans Affairs administration, and has fantastic new facilities for MDMA-assisted therapy. We will work diligently to supply both the current contract, and any future needs that they may have for GMP MDMA drug product.”

The company also announced PharmAla and CCrest Labs have terminated their supply agreement. CCrest was contracted in 2022 to distribute PharmAla’s MDMA to doctors under the Special Access Program. PharmAla will rely on other contracted distributors to complete this work moving forward.

CYBIN GRANTED U.S. COMPOSITION OF MATTER PATENT: Cybin (CYBN) announced Thursday that the United States Patent and Trademark Office has granted U.S. patent 12,122,741 with claims to the composition of matter of lead preclinical candidates in the Company’s CYB005 phenethylamines program. The company is investigating novel molecules within the CYB005 program at non-hallucinogenic doses for a range of Central Nervous System disorders. In addition, the company is continuing to explore non-hallucinogenic neuroplastogens within its broader discovery pipeline, as well as targeted serotonin 5-HT1A and 5-HT2C receptor agonists.

“The granting of this patent in support of our CYB005 phenethylamines program reinforces our commitment to expanding the breadth of innovative development work beyond our clinical tryptamine programs,” said Doug Drysdale, CEO. “Non-hallucinogenic 5-HT receptor agonists have garnered a great deal of attention in recent years, and we are eager to continue exploring their clinical potential in CNS disorders. While our primary focus remains on our clinical-stage psychiatry programs, CYB003 and CYB004, we believe that other programs like CYB005 that target CNS disorders have the potential to address significant unmet medical needs. We remain focused on demonstrating our scientific leadership in the space, while delivering long-term shareholder value.”

CANNABIS/PSYCHEDELIC STOCKS: Publicly-traded companies in the space include Acreage (ACRHF), Ascend Wellness (AAWH), Atai Life Sciences (ATAI), Aurora Cannabis (ACB), Avant Brands (AVTBF), Ayr Wellness (AYRWF), The Cannabist Company (CBSTF), Cannara Biotech (LOVFF), Canopy Growth (CGC), Chicago Atlantic (REFI), Clearmind (CMND), Clever Leaves (CLVR), Compass Pathways (CMPS), CordovaCann (LVRLF), Cresco Labs (CRLBF), Cronos Group (CRON), CV Sciences (CVSI), Entourage Health (ETRGF), Enveric Biosciences (ENVB), Flora Growth (FLGC), Trees Corporation (CANN), Greenlane (GNLN), GrowGeneration (GRWG), Hemp (HEMP), Heritage Cannabis (HERTF), High Tide (HITI), IGC Pharma (IGC), IM Cannabis (IMCC), Innovative Industrial Properties (IIPR), InterCure (INCR), Ispire Technology (ISPR), Lowell Farms (LOWLF), Lucy Scientific Discovery (LSDI), MediPharm (MEDIF), MindMed (MNMD), NewLake Capital (NLCP), Numina’s (NUMIF), Optimi Health (OPTHF), Organigram (OGI), Planet 13 (PLNHF), Psyence Biomedical (PBM), Red White & Bloom (RWBYF), Relmada Therapeutics (RLMD), Reunion Neuroscience (REUN), Safe Harbor Financial (SHFS), Skye Bioscience (SKYE), SNDL (SNDL), Stem Holdings (STMH), TerrAscend (TRSSF), Tilray (TLRY), Trulieve (TCNNF), Tryp Therapeutics (TRYPF), Verano (VRNOF), Village Farms (VFF), Vireo Health (VREOF) and 4Front Ventures (FFNTF).