#2: Leafly Holdings
Cannabis e-commerce platform Leafly Holdings, Inc. (NASDAQ: LFLY) was delisted from the Nasdaq stock exchange as of January 17, 2025, after failing to meet the exchange’s minimum net income requirement of $500,000 from operations. This marked another challenge for the Seattle-based company, which has faced declining revenues, reduced retail accounts, and mounting financial pressures. In its most recent quarter, revenue dropped to $8.4 million from $10.5 million the previous year, while the number of retail accounts fell by 20% to 3,554.
In a press release, Leafly CEO, Yoko Miyashita, emphasized that debt management remains a priority for the company. And to address immediate financial obligations, the company had reached an agreement with the holders of its 8% convertible senior notes to extend the maturity date from January 31 to July 1, 2025. As part of the arrangement, Leafly will pay down 12.5% of the outstanding principal and grant a first-priority security interest in its assets to secure the notes. “The extension provides us breathing room to continue stabilizing the business,” Miyashita said.
Despite the company undertaking significant restructuring efforts, which included cutting staff by nearly half, shuttering its news division in 2023, and consolidating its shares on a 20-to-1 basis, Leafly reported having only $13.5 million in cash against $34.1 million in liabilities as of September 2024. Miyashita cited payment delinquencies, which accounted for 40% of lost monthly recurring revenue, as a major challenge. Despite these difficulties, Miyashita offered a note of optimism, stating in November that “the most significant challenges in the retail business are behind us,” pointing to stabilizing revenues and retail accounts.
Leafly joins a growing list of cannabis-related companies that have exited major exchanges due to challenges with the listing requirements. Similar moves include Clever Leaves Holdings Inc. (OTC: CLVR), which voluntary delisted from Nasdaq in early 2024, and Bright Green Corporation (OTC: BGXX), which was suspended from the Nasdaq stock exchange in September 2024.
Leafly’s shares and warrants will now trade on the OTC Pink Open Market under the ticker symbols LFLY and LFLYW. The switch to the less prestigious OTC market is expected to reduce liquidity, decrease institutional investor interest, and make raising capital more challenging.
#3: High Tide
Canadian cannabis retailer High Tide Inc. (NASDAQ: HITI) (TSXV: HITI) announced its entry into the German medical marijuana market through the acquisition of a 51% stake in German pharmaceutical wholesaler Purecan GmbH. The €4.8 million ($4.9 million) deal included a combination of cash, shares, and a promissory note, and provides High Tide with an option to acquire the remaining interests in Purecan within five years. The acquisition is expected to close in the coming weeks.
Raj Grover, Founder and CEO of High Tide, highlighted the strategic importance of the acquisition. “With almost half of all German medical cannabis imports coming from Canada, this acquisition paves the way for us to emerge as a leading supplier of medical cannabis from Canada into Germany, potentially replicating our market share success in Canada,” he said.
The deal structure included €2.4 million in High Tide common shares, priced at C$4.53 (adjusted using the Bank of Canada exchange rate), and €1.2 million in cash. Additionally, a €1.2 million promissory note was also part of the agreement, with the note having a two-year maturity and an annual interest rate of 7%.
Purecan, which is based in Frankfurt, is a profitable importer of medical cannabis and holds a European wholesale and import license. The company also operates warehousing and logistics infrastructure and is preparing to launch a telemedicine platform for German medical cannabis patients.
Dr. Ehsan Omari, Chief Medical Officer at Purecan, also expressed enthusiasm for the partnership. “Demand for medical cannabis in Germany is currently outpacing supply. This merger provides Purecan with a unique opportunity to tap into High Tide’s unmatched procurement expertise and relationships with Canadian licensed producers,” he said.
Germany has become one of the largest importers of medical cannabis globally, with Canadian producers supplying nearly 50% of the imports. The country’s medical cannabis market has seen rapid growth since the passage of the Consumer Cannabis Act in April 2024, which made it easier for patients to access medical marijuana prescriptions.
According to the recent Prohibition Partners’ “The German Cannabis Report,” Germany’s medical cannabis sales are projected to surpass €420 million in 2025 and could reach €1 billion by 2028. The report also noted a 30% increase in sales during the third quarter of 2023, which accelerated further following the passage of the new legislation.
This market potential highlights why Raj Grover views the acquisition as a pivotal and strategic entry into Germany’s expanding cannabis industry. “This highly accretive acquisition provides immediate market entry into Germany while we explore opportunities for consumer research with the Food and Drug Agency, aligning with the ordinance recently signed by Germany’s agriculture minister,” Grover stated.
Top Psychedelic Companies for Week
#1: MindMed
Psychedelic drug company Mind Medicine (MindMed) Inc. (NASDAQ: MNMD) released its 2025 Corporate Presentation, offering investors an in-depth look at its upcoming initiatives and plans for commercialization. The company, which previously boasted a strong cash cushion, reported that it had now added a significant $250 million equity investment to its strategy. This additional funding is expected to bolster MindMed’s clinical trials and commercialization efforts in the coming years.
MindMed also stated that it is advancing two crucial Phase 3 studies for its MM120 lysergide D-tartrate (LSD) drug in 2025, targeting generalized anxiety disorder (GAD) and major depressive disorder (MDD). The Panorama study for GAD is set to begin in the first half of 2025, while the Emerge study for MDD is also scheduled for the same period.
Furthermore, the Voyage Phase 3 trial for GAD has already commenced, with its Phase 3 readout expected in early 2026. In December 2024, MindMed announced that the first patient had been dosed in the Voyage study. This trial evaluates the safety and efficacy of MM120 ODT against a placebo, and plans to enroll approximately 200 participants in the U.S.
In terms of regulatory progress, MindMed said it had achieved a significant milestone in March 2024 when the FDA granted Breakthrough Therapy Designation for MM120. This designation is expected to accelerate the development and review process for the drug. Additionally, in December 2024, MindMed secured an Innovation Passport from the U.K. Medicines and Healthcare Products Regulatory Agency (MHRA) for the potential treatment of GAD. This Innovation Passport is part of the Innovative Licensing and Access Pathway (ILAP), which aims to streamline patient access to new treatments in the U.K.
The company also outlined its prelaunch strategy for MM120, which will include strategic partnerships with clinics, education campaigns to inform stakeholders on the unmet needs in GAD and MDD, and collaboration with existing reimbursement frameworks.
With these updates, MindMed is positioning itself for continued growth in the psychedelic pharmaceutical market. The company aims to make significant progress with its drug pipeline while preparing for the commercialization of MM120 as a potential breakthrough treatment for mental health conditions such as GAD and MDD.
#2: Awakn
Awakn Life Sciences Corp. (CSE: AWKN) (OTC: AWKNF), a biotechnology company developing therapeutics for substance use and mental health disorders, recently announced the successful acquisition of an unsecured credit facility worth up to US$535,000. The credit, which was provided by an arm’s length creditor, is designed to support the company’s ongoing research and development efforts.
The credit facility, which was outlined in a grid promissory note, is flexible, allowing Awakn to draw on the funds in multiple advances. The principal drawn under the facility will be due for repayment on December 5, 2026, bearing a 10% annual interest rate. Awakn stated that it intends to utilize the funds primarily for general working capital purposes as it advances its clinical projects.
“We continue to make significant progress on research programs, including our lead program AWKN-001, which is in Phase 3 trials in the UK, and AWKN-002, which is in Phase 2 planning in the US. This facility extends our runway as we progress towards new milestones,” said Anthony Tennyson, CEO of Awakn.
Awakn is committed to providing breakthrough therapeutics for addiction, focusing on Alcohol Use Disorder, which affects millions of individuals in key markets. The company’s strategy is to commercialize its R&D pipeline across multiple channels, offering hope to those in need of new treatments.
