CBD & Cannabis Business Financing in 2021

Investors may be feeling more optimistic about the future after the companies seem to have weathered the worst in 2020. This could indicate renewed interest in funding cannabis businesses and cannabidiol (CBD).

HempFusion Wellness started the year optimistically by trading on the Toronto Stock Exchange (January 6 ⁾. This was the completion of its initial public offering (7m common shares, $7m).

Jason Mitchell, CEO of HempFusion, stated that the additional $17m capital would add to our healthy treasury and provide us with a solid foundation to build and execute our strategic plans for 2021.

"Our goals include increasing investment in research and development, expanding sales networks, and establishing HempFusion as an industry leader in the dynamic global CBD market."

Its products include HempFusion-owned Biome Labs and HF Labs, and Probulin Probiotics. In addition, the company just launched an Amazon e-commerce store for Probulin Probiotics to increase its distribution, boost online growth and increase brand awareness.

Mitchell stated, "We are thrilled to launch The Probulin Store at Amazon. This gives our brand tremendous exposure to new clients."

Probulin is not a CBD product. Amazon continues to ban CBD products.

HempFusion's top-of-the-line CBD products target acne, anti-aging, sports pain relief, and eczema relief.

Another particular purpose acquisition company (SPAC) has also expressed an interest in CBD and hemp. Ackrell SPAC Partners, formed at the close of last year, will invest up to $100m in fast-moving consumer goods, including hemp, particularly in beverages and wellness products.

The company stated that its management team believes hemp-based consumer products can appeal to mass consumers around the globe. "Consumers are using hemp-based products to treat anxiety, insomnia, pain, and inflammation."

The industry also has the benefit of musician-related investments. Subversive Capital Acquisition is another SPAC, this time in the cannabis sector. Jay Z was hired by the company to "promote social equity" within the industry. It already bought Caliva, a brand of cannabis, and Left Coast Ventures (an investment firm and producer) and is now looking for more.

According to documents filed with US Securities and Exchange Commission, Snoop Dogg's venture capital company Casa Verde has raised $100m towards Casa Verde Capital's investment fund.

Karan Wadhera (managing director of the fund) predicts that legalization will be a boon for the cannabis industry.

Wadhera stated that cannabis had proven itself to be a stable industry in the four-plus month COVID. "Cannabis is considered an important business in the US. Record sales were recorded in March, April, and May, and this trend continues.

"Now that we are in an environment where governments will be looking for additional tax revenue sources, the potential urgency surrounding cannabis legalization will be there, which could be hugely beneficial for the industry."

Although there is no indication as to the target of the new venture capital fund, the fundraising has more than doubled Casa Verde's initial investment vehicle.

Aurora Cannabis also announced that it raised $125m via 12m shares at a $10.45/unit price. This money will be used to fund general corporate activities, such as reducing debt.

Atai Life Sciences, a Berlin-based biotech company, raised $125m in Series C funding last year. The round was led by Apeiron Investment Group, Catalina Capital Management, and billionaire Peter Thiel (co-founder of PayPal and the first outside investor to Facebook).

The firm is currently developing treatments for mental disorders.

We believe our non-psychedelic and psychedelic compounds offer compelling therapeutic potential based on growing scientific evidence. Florian Brand, CEO of Atai Life Sciences, said, "This funding round is another step towards our vision of effectively treating and ultimately preventing mental health disorders. Bridging the gap between the mental health system's current provision and what patients require."

Christian Angermayer, chairman of Atai, said, "With COVID-19 only accentuating existing standards of care failures, we are at an inflection moment when it comes to seriously addressing this global mental illness crisis."