Cannabis earnings season is done until next quarter, wrapping up with Ayr Wellness. In this latest Trade To Black Podcast, we take a look at Ayr’s quarterly, recap some of the sentiments, and look ahead to other investment opportunities that may be coming along the way.
Ayr Wellness (CSE: AYR.A) reported financial results that fell short of top-line revenue expectations. Revenue was reported at $116.7 million, slightly lower than their Q1 of $117.7 million dollars. Still, there’s some positives to take away from their reports. Adjusted EBITDA, Adjusted EBITDA margin, and gross profit have all been improving. Net loss has also narrowed dramatically, down 81% YOY and $79% sequentially.
Despite missing the analysts estimates of $120.78m in their earnings report, Ayr Wellness continues to make some favorable impressions, especially as several MSOs like Curaleaf and GTI registered little or flat growth in their reports. Could the business be a proverbial lottery ticket? While the investment remains high risk, the potential for high rewards, combined with Ayr Wellness’ growth prospects and positive cash position, make it a potentially enticing opportunity for investors. We’ll share some of our thoughts on that, and opinions on cannabis industry sentiments in general.
On the psychedelic side, COMPASS Pathways’ (NASDAQ: CMPS) recent security purchase agreement remains hot news. The agreement involves an upfront payment of $125 million, with a potential funding of $162 million if certain conditions are met within a three-year term. The agreement entails the issuance of a number of American Depositary Shares and an equivalent number of purchase warrants. It’s anticipated that this could secure the funding Compass would need to conduct their ongoing Phase 3 clinical therapy trials.
Will this deal have the chance to kickstart the industry? We have a look the ripples made by this announcement, and some anticipated competitors upcoming announcements in the psychedelic space. Plus: Coinbase has announced the L2 Blockchain Base. What does that mean for investors? Tune in to find out.