Week In Review: Vireo Growth Inc. Secures $75 Million Financing and Acquires Four Cannabis Operators; Minnesota Approves Hemp Seed Meal for Laying Hens Agrify Divests Cultivation Business to Focus on THC Beverages; Aurora Cannabis Expands Distribution in Australia

LOS ANGELES — Welcome to the far too-exciting world of cannabis and psychedelics, where it’s a tale of two markets with some states doing amazingly well. And some, well…they’re not doing so well (hello New York). Let’s get to it! 

Cannabis Industry Highlights

#1) Vireo Growth Inc. Secures $75 Million Financing and Acquires Four Cannabis Operators: Vireo Growth Inc. has announced a $75 million equity financing at $0.625 per share, alongside agreements to acquire four single-state cannabis operators for approximately $397 million in all-stock transactions.

#2) Minnesota Approves Hemp Seed Meal for Laying Hens:The Minnesota Department of Agriculture (MDA) has authorized the use of hemp seed meal in feed for laying hens, positioning Minnesota among the first states to permit this ingredient in poultry diets.

#3) Agrify Divests Cultivation Business to Focus on THC Beverages: Agrify Corporation, a provider of solutions for the cannabis and hemp industries, has sold its cultivation business to CP Acquisitions, LLC, an entity affiliated with former CEO Raymond Chang. The transaction, completed on December 31, 2024, involved the transfer of assets related to Agrify’s Vertical Farming Units, turnkey solution assets, and Agrify Insights software solutions. CP Acquisitions assumed related liabilities, and two convertible notes held by CP, totaling approximately $7 million, were terminated as part of the deal.

#4) Aurora Cannabis Expands Distribution in Australia: Aurora Cannabis Inc. has announced a distribution partnership between its wholly owned subsidiary, MedReleaf Australia, and The Entourage Effect, a company that provides distribution and support services to pharmacies in Australia.

#5) Canopy USA Appoints M. Brooks Jorgensen as President:Canopy USA, a subsidiary of Canopy Growth Corporation, has announced the appointment of M. Brooks Jorgensen as its new President. Jorgensen brings over two decades of experience in the wine and spirits industry, including a tenure as Vice President and General Manager at Southern Glazer’s Wine and Spirits.

#6)Ohio’s Cannabis Market Expansion in 2024:In 2024, Ohio’s legal cannabis market achieved sales exceeding $675 million, marking a 40% increase from the previous year’s $484 million. This growth is attributed to the commencement of adult-use cannabis sales in August 2024.

#7)The Rise of a New Era of Consumption: Cannabis-Infused Drinks: Cannabis-infused beverages have rapidly gained traction in recent years as a popular alternative to traditional consumption methods such as smoking and vaping. With the increasing legalization of cannabis in the United States and other parts of the world, these drinks offer consumers a novel and convenient way to enjoy all the benefits of the cannabis plant, both recreational and medicinal.

#8) Hawaii Governor Signs Executive Order to Protect Medical Cannabis Caregivers:Governor Josh Green of Hawaii has signed Executive Order No. 24-06 to protect caregivers who provide medical cannabis to qualified patients from undue enforcement.This action addresses legal changes that were set to take effect on January 1, 2025, which would have ended the authorization for primary caregivers to cultivate cannabis for patients. The Governor’s order directs the Department of Health to refrain from using resources to enforce these changes against caregivers who are cultivating cannabis within the bounds of the previous law. This measure ensures that caregivers can continue their duties without fear of enforcement, provided they comply with existing regulations.

Psychedelic Sector Update

1#) Compass Pathways Advances Psilocybin Research in the UK: Compass Pathways, a biotechnology company specializing in mental health innovations, has commenced the UK segment of its global Phase 3 clinical trial evaluating COMP360 psilocybin therapy for treatment-resistant depression (TRD). This initiative follows approval from the UK’s Medicines and Healthcare products Regulatory Agency.

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