Rising High: Village Farms acquires remaining interest in Leli Holland

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, a beverage launch and a trademark licensing agreement.

VILLAGE FARMS ACQUIRES REMAINING INTEREST IN LELI: Village Farms International (VFF) announced Tuesday it has acquired the remaining equity ownership interest in Leli Holland. The transaction increased Village Farms’ equity ownership in Leli to 100% from 85%.

“We are thrilled to complete this transaction as we believe the Dutch market represents one of the most attractive limited-license cannabis market opportunities across the entire globe,” said Michael DeGiglio, CEO. “After decades of tolerating the unintended consequences of a backdoor decriminalisation policy, the new Dutch program represents an historic evolution of regulations that make it the first major European country to permit legal recreational cannabis operations. We have been very impressed by the Dutch government’s thoughtful implementation of this program, and applaud them for an excellent job done to help ensure a successful launch.”

The company also announced that it has completed construction of its cultivation facility in the town of Drachten. The Drachten facility is an indoor facility with five flower rooms and additional space for drying, manufacturing, and packaging of finished goods for distribution to approximately 80 Dutch coffeeshops in participating jurisdictions. Leli anticipates commencing cultivation in October, pending final regulatory inspections, with its first sales expected to occur during 1Q25.

TILRAY LAUNCHES HEMP-DERIVED DELTA-9 THC BEVERAGES: Tilray Brands (TLRY), through its newly formed Tilray Alternative Beverages business unit, unveiled Tuesday its portfolio of hemp-derived Delta-9 THC beverages to launch in key markets across the U.S., beginning in October. Tilray’s lineup of HDD9 drinks include premium mocktails, seltzers and sparkling drinks made with high-quality hemp extracts and ingredients. Tilray’s inaugural portfolio of HDD9 brands includes 420 Fizz, Herb & Bloom, Fizzy Jane’s, and Happy Flower. Additionally, Tilray plans to introduce other HDD9 brands and product categories later this year.

The company said, “420 Fizz is a sleek and modern brand built off Tilray’s iconic 420 beverage platform. Enhanced with 5mg HDD9 per can, 420 Fizz is an exciting new seltzer with a refreshing taste. Herb & Bloom, a super-premium mocktail, offers a unique way to experience timeless classics with its harmonious blend of refreshing fruit notes infused with 5mg HDD9 per can. Each drink is crafted for a smooth and balanced experience, resulting in a delicious taste…Fizzy Jane’s is a light and delicious seltzer with 5mg HDD9 per can and three classic flavors Blackberry, Blood Orange and Vanilla…Happy Flower is inspired by classic cocktails, with a citrusy Margarita, a juicy Strawberry Daiquiri, and a bubbly and fruity Peach Bellini. Each Happy Flower cocktail contains 5mg HDD9 THC per 12oz. can and provides a new way for consumers to relax and unwind in a format that’s familiar, convenient, and delicious. Tilray will launch Happy Flower in partnership with Emergent Beverage in the Texas and Louisiana markets.”

AVANT BRANDS ENTERS LICENSING AGREEMENT WITH NECTAR: On Monday, Avant Brands (AVTBF) announced that it has entered into an exclusive trademark licensing agreement with Nectar Portfolio. This agreement marks Avant’s strategic entry into the rapidly growing Australian medical cannabis market, introducing its BLK MKT brand to a new audience. The agreement with Nectar adds to Avant Brands’ growing international presence, with the BLK MKT brand now available in Canada, Australia, Germany, Israel, and Switzerland, representing a combined population of approximately 127M. The company is actively engaged in discussions to further expand the reach of its premium cannabis brands into additional global markets. It is anticipated that BLK MKT products will be available to Australian consumers in the coming months. Nectar gains exclusive rights to market, sell, and distribute BLK MKT dried cannabis flower throughout Australia for a two-year term, with the potential for extension based on performance.

Norton Singhavon, CEO, commented: “We are excited to partner with Nectar Brands, a leader in the Australian medical cannabis industry, to bring our flagship BLK MKT brand to patients in Australia. This agreement represents a significant step in our global expansion strategy and we anticipate that it will generate incremental revenue growth for Avant Brands. We believe that the Australian market, as well as other key international markets, presents a tremendous opportunity for growth, and we are confident that our partnerships will be instrumental in establishing BLK MKT as a leading global cannabis brand.”

4FRONT RETAINS CANACCORD TO OPTIMIZE CAPITAL STRUCTURE: 4Front Ventures (FFNTF) announced Wednesday that it has retained Canaccord Genuity to lead its ongoing efforts to consolidate and streamline its capital structure. The immediate focus will be on exploring opportunities for refinancing existing debt and raising fresh growth capital, while also considering a full range of operational and strategic alternatives, with the ultimate objective to align all capital and operational partners with the long-term financial success of the company.

Andrew Thut, CEO, said, “We’re at a pivotal moment as we begin to scale our flagship Matteson facility and expand our Mission retail footprint in Illinois. Partnering with Canaccord Genuity will help us secure the necessary growth capital, streamline our balance sheet, and position the company for substantial and sustainable cashflow generation and shareholder value creation.”

ENVERIC PRESENTS DATA ON EB-003 DEVELOPMENT: Enveric Biosciences (ENVB) announced Wednesday that research highlighting the company’s lead compound, EB-003, is being presented at the 7th Neuropsychiatric Drug Summit. EB-003 is a neuroplastogenic and non-hallucinogenic N,N-Dimethyltryptamine analog drug candidate that elicited beneficial outcomes in preclinical models of anxiety and depression. The conference is being held at the Hilton Boston Back Bay in Boston, MA. The presentation titled, “Non-hallucinogenic and neuroplastogenic DMT analog imparts positive behavioral outcomes in mice,” addresses the criteria researchers evaluated in the design and development of EB-003 as a non-hallucinogenic derivative of DMT for the treatment of neuropsychiatric disorders, including depression and anxiety. The poster highlights key preclinical data involving EB-003, including two mouse models demonstrating the effectiveness of EB-003 in reducing anxiety and depression, and research examining head twitch response, a behavioral proxy in rodents for hallucinogenic effects in humans. This data adds to the library of research supporting the advancement of EB-003 as Enveric’s lead drug candidate. Recently, Enveric reported preclinical data confirming the oral bioavailability of EB-003 and its ability to produce brain exposure at therapeutically relevant levels. Enveric expects to file an Investigational New Drug application for EB-003 by 3Q25 and initiate clinical development by the end of 2025.

Additionally on Thursday, Enveric announced that it is presenting research describing the company’s identification of EB-003 as its lead development candidate based on preclinical data suggesting the compound exhibits promising anxiolytic and anti-depressant properties without inducing hallucinations, a favorable profile compared with other analogs of N,N-Dimethyltryptamine. The presentation titled, “Semi-systematic series of DMT analogs for exploring relationships between hallucination, neuroplastigenicity, and positive behavioural outcomes in mice,” describes the methodology used by Enveric to select EB-003 from a series of 3D-designed analogs based on behavioral outcomes in mouse models for anxiety and depression. The presentation highlights key measures of responses in mice including head twitch response as well as outcomes of marble burying and sucrose preference. These findings provide evidence of beneficial neuroplastogenic responses that are non-hallucinogenic in animal models.

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), BZAM (BZAMF), The Cannabist Company (CBSTF), Cannara Biotech (LOVFF), Canopy Growth (CGC), Cansortium (CNTMF), Chicago Atlantic (REFI), Clearmind (CMND), Clever Leaves (CLVR), Compass Pathways (CMPS), CordovaCann (LVRLF), Cresco Labs (CRLBF), Cronos Group (CRON), Curaleaf (CURLF), CV Sciences (CVSI), Cybin (CYBN), Entourage Health (ETRGF), Flora Growth (FLGC), Trees Corporation (CANN), Greenlane (GNLN), Green Thumb (GTBIF), GrowGeneration (GRWG), Hemp (HEMP), Heritage Cannabis (HERTF), High Tide (HITI), IGC Pharma (IGC), IM Cannabis (IMCC), Innovative Industrial Properties (IIPR), InterCure (INCR), Lowell Farms (LOWLF), Lucy Scientific Discovery (LSDI), MediPharm (MEDIF), MindMed (MNMD), NewLake Capital (NLCP), Numinus (NUMIF), Optimi Health (OPTHF), Organigram (OGI), PharmAla (MDXXF), Planet 13 (PLNHF), Psyence Biomedical (PBM), Red White & Bloom (RWBYF), Relmada Therapeutics (RLMD), Reunion Neuroscience (REUN), RIV Capital (CNPOF), Safe Harbor Financial (SHFS), Skye Biosciences (SKYE), SNDL (SNDL), Stem Holdings (STMH), TerrAscend (TRSSF), Trulieve (TCNNF), Tryp Therapeutics (TRYPF), Verano (VRNOF), Vireo Health (VREOF) and Zynerba (ZYNE).