Week In Review: RIV Capital’s Ambitious Transition to Adult-Use Cannabis Sales in New York;. California and Michigan Boost Social Equity in Cannabis Industry with New Funding Initiatives

LOS ANGELES–Welcome to the far too-exciting world of cannabis and psychedelics, where it’s a tale of two markets: there’s innovation and progress in full swing in some parts of the country, while in other parts, the industry is on the ropes largely due to collapsing cannabis prices and lack of access to capital, making cannabis business models very challenging.  This week’s ‘Week In Review’ is a roundup of key developments in the industry, showcasing the news from key companies and people making news in the space.

Weekly Overview: Developments in the Cannabis and Psychedelic Sectors

Latest news: MJBizCon, the premier cannabis industry conference, made its mark in Las Vegas last week, captivating attendees with the latest trends, innovations, and groundbreaking developments.

It’s tough now for many operators with many going to the wall. Many never made it this year to MJBizCon. Indeed, only the strongest, most highly capitalized companies have survived the last few years.

As cannabis enthusiasts and industry professionals gathered last week in Las Vegas, several key themes and highlights emerged from the event. Read our five key things that people saw and experienced at MJBizCon 2023 here. 

Meanwhile, the conservatives are being conservative in Ohio and are stonewalling the rollout of legal cannabis. Read our story here. 

#1. RIV Capital’s Ambitious Transition to Adult-Use Cannabis Sales in New York:  RIV Capital, a Toronto-based cannabis investment firm, has navigated a turbulent path in its growth story, particularly in the New York market. Initially setting up as one of the few medical cannabis operators in New York, the company anticipated significant profits from the transition to adult-use sales. However, the journey has been fraught with challenges, delays, and financial setbacks.

#2. Oregon’s Cannabis Market Faces Oversupply Challenges Amid Regulatory Complexities: Oregon, a state known for its progressive stance on cannabis, is currently grappling with significant oversupply issues in its market. This challenge is compounded by various other difficulties that have been persisting in the state’s cannabis industry.

#3. California and Michigan Boost Social Equity in Cannabis Industry with New Funding Initiatives: In a significant move to bolster social equity within the cannabis industry, both California and Michigan have recently taken steps to channel more funding into social equity cannabis companies. California is set to allocate $15 million to local governments with social equity permit programs, while Michigan has earmarked $1 million in grants for eligible businesses.

Psychedelic Market Highlights:

#1. Algernon Pharmaceuticals Partners with Seyltx Inc.: Algernon Pharmaceuticals Inc., a Canadian clinical stage pharmaceutical development company, has announced a significant advancement in its research program. The company has signed a Letter of Intent with Seyltx Inc., a U.S.-based drug development firm, to acquire Algernon’s NP-120 (Ifenprodil) research program. This partnership, valued at USD $2M in cash and a 20% common share equity position in Seyltx, is subject to several conditions, including Seyltx financing and the execution of a definitive agreement, expected to be finalized within the next 90 days.

The offering involved the issuance of 66,666,667 units at a price of US$0.45 per unit. Each unit comprises one common share and one warrant to purchase an additional common share at US$0.51, exercisable six months post-issuance until May 14, 2029. This strategic financial maneuver is designed to strengthen Cybin’s capital structure and provide flexibility for future growth.

Stay tuned to Highly Capitalized for more updates as the cannabis and psychedelic industries continue to shape the future at the intersection of wellness and innovation. Subscribe to our newsletter and follow us on LinkedIn.