Welcome to the Cannabis Countdown. In This Week’s Edition, We Recap and Countdown the Top 10 Marijuana and Psychedelic Stock News Stories for the Week of December 28th, 2020 – January 3rd, 2021.
Without further ado, let’s get started.
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Following Horizons’ Quarterly Rebalance, Here’s What the Top 10 Holdings of Their HMMJ and HMUS Cannabis ETFs Look Like Now
On December 29, 2020, Horizons ETFs Management (Canada) announced it completed a quarterly rebalance of the holdings of its two Cannabis ETFs: Horizons Marijuana Life Sciences Index ETF (TSX: HMMJ) and the Horizons U.S. Marijuana Index ETF (NEO: HMUS).
Psychedelics Are Winning Big With Major Players Drawing Serious Investment Interest
Money tends to follow efficacy in biotech and pharmaceutical investing, and psychedelics have certainly exhibited incredible efficacy. Indeed, 2020 has witnessed several Psychedelics IPO, crazy stock surges and some major financings. MindMed (NEO: MMED) (OTCQB: MMEDF) (DE: MMQ) recently closed an upsized $80 million bought deal and Silicon Valley billionaire Peter Thiel-backed psychedelic pioneers, Compass Pathways (NASDAQ: CMPS), were the first psychedelic company to debut on the NASDAQ this year.
It is Estimated the Combined Entity Will Be Valued at Roughly $3.9 Billion, Boasting Pro-Forma Yearly Sales of $685 Million
Earlier this month, cannabis growers Aphria (TSX: APHA) (NYSE: APHA) (FRA: 10E) and Tilray (NASDAQ: TLRY) (FRA: 2HQ) announced a merger to create the largest enterprise in the industry by revenue. Aphria recently acquired SweetWater Brewing Company for $300 million. Tilray, meanwhile, has a joint venture with Anheuser-Busch InBev (NYSE: BUD) called Fluent Beverage Company. Both these relationships signal a clear interest from the companies in the beverage space.
The Drug Discovery and Development Pipeline Can Take Up to 15 Years to Complete and Even Then, Only 14% of Drugs That Make it to Their Respective Clinical Trials Will Gain Regulatory Approval and a Large Amount of Money is Spent Either Way
The regulatory restrictions behind the high cost and high failure rate of drug approvals also apply to the emerging Psychedelic medicine industry. However, innovators at MagicMed Industries have significantly de-risked this process for stakeholders of psychedelic medicine. Through its unique approach to psychedelic drug development, MagicMed has addressed many of these aforementioned problems.
It’s Been a Busy Month for Ayr Strategies, Which Has Operations in Nevada and Massachusetts Including 3 Cultivation and Processing Facilities Along with 7 Cannabis Dispensaries Across the 2 States
Echelon analyst Andrew Semple likes the looks of two new acquisitions by cannabis company Ayr Strategies (CSE: AYR.A) (OTCQX: AYRSF). In an update to clients on December 23, Semple reiterated his “Buy” rating while raising his target price from C$43.00 to C$53.00, which represented at press time a projected 12-month return of 90.3%.
Neonmind, a Subsidiary of Vancouver-Based Health and Wellness Firm Better Plant Sciences, Will Begin Trading on the Canadian Securities Exchange on Monday
Better Plant Sciences (CSE: PLNT) (OTC: VEGGF) announced this morning that its partially owned subsidiary Neonmind expects to close its initial public offering tomorrow, on December 30. Trading will kick off on the CSE on January 4 under the stock ticker symbol “NEON”. This will not affect Better Plant Sciences, which will continue to trade on the CSE and OTC under its existing symbols.
Needham & Company Released a 2021 Outlook Wherein They Named Ayr Strategies and Green Thumb Industries as Their Top Picks for 2021
Matt McGinly, Needham’s analyst, currently has a US$28 (C$35.64) 12-month price target on Ayr Strategies (CSE: AYR.A) (OTCQX: AYRSF). This compares to the C$44.25 average price target, which has risen from C$33.50 in the last month. His current Green Thumb (CSE: GTII) (OTCQX: GTBIF) (FRA: R9U2) price target is C$39, while the average analyst price target is C$36.92, up slightly since last month.
Psychedelic Medicine Will Begin to Cross Over Into the Mental Health Mainstream in 2021
In both Europe and the US, medicines regulators have eased restrictions on using MDMA to treat PTSD, and on Psilocybin – the active substance in Magic Mushrooms – to treat depression. In the UK, London-based mental-health care company Compass Pathways (NASDAQ: CMPS) has raised more than $115m to fund its efforts and bring to market a psilocybin treatment for depression. In August, the company filed an application to issue an IPO on the NASDAQ.
Consolidation Continues in the Burgeoning North American Cannabis Market and There’s One Deal That Makes a Lot of Sense
Raymond James analyst Rahul Sarugaser says a merger between Canopy Growth (TSX: WEED) (NASDAQ: CGC) (FRA: 11L1) and Village Farms (TSX: VFF) (NASDAQ: VFF) (FRA: 02V) would be that one deal. In a company brief to clients on December 24, Sarugaser reiterated his “Strong Buy 1” for Village Farms while making the case for the acquisition.
On December 24, the Psychedelics Sector Received an Early Christmas Present
Horizons ETFs filed a prospectus to introduce the world’s first Psychedelic Stock ETF to the market. The soon-to-be NEO Exchange-listed issue is a natural extension of a sector that has come of age—specifically in the calendar fourth quarter of this year. The Horizons Psychedelic Stock ETF could be a great way for investors to gain exposure while decentralizing risk.