Growing investor interest in financing CBD and cannabis businesses indicates a resurgence of positive sentiment about the future, following the challenges faced by companies in 2020.

HempFusion Wellness started the year on a positive note by commencing trading on the Toronto Stock Exchange and successfully completing its initial public offering of 7 million common shares, raising USD $7 million.

HempFusion CEO Jason Mitchell stated, “The additional capital of USD $17 million strengthens our financial position, providing us with a solid foundation to execute our strategic plans for 2021 and beyond. Our goals include increased investment in research and development, expanding sales and distribution networks, and firmly establishing HempFusion as a leader in the dynamic global CBD industry.”

HempFusion offers a range of products, including Biome Labs, HF Labs, and Probulin Probiotics. To expand distribution, drive online growth, and enhance brand awareness, HempFusion recently launched an Amazon e-commerce store for Probulin. This move provides significant exposure to new customers.

Notably, Probulin is a non-CBD product due to Amazon’s ban on CBD products, except for its ongoing limited trial in the UK.

HempFusion’s topical CBD products, such as creams and balms, cater to various needs, including acne, anti-aging, sports pain relief, eczema relief, and wound care.

Another special purpose acquisition company (SPAC), Ackrell SPAC Partners, formed recently, has shown interest in investing up to $100 million in fast-moving consumer goods, with a particular focus on hemp-based beverage and wellness products. The management team believes that hemp-based consumer goods have the potential for mass appeal worldwide, as consumers increasingly turn to hemp-based products for various medical conditions, including anxiety, insomnia, pain, and inflammation.

Positive developments in the industry extend to investments related to musicians. Subversive Capital Acquisition, a cannabis-focused SPAC, has enlisted Jay Z to promote social equity within the industry. The company has already acquired two companies, Caliva (a cannabis brand) and Left Coast Ventures (an investment firm and producer), and continues to seek additional targets.

Meanwhile, Casa Verde, the venture capital firm founded by Snoop Dogg, has raised $100 million for its investment fund, Casa Verde Capital, as documented with the US Securities and Exchange Commission.

The managing director of the fund, Karan Wadhera, foresees the cannabis industry benefiting from a heightened push towards legalization.

“In the midst of COVID, cannabis has demonstrated itself as a non-cyclical industry,” Wadhera shared with TechCrunch in July 2019. “Cannabis has been recognized as an essential business across the United States. We witnessed record sales in March, April, and May, and this trend has persisted. As governments seek additional sources of tax revenue, the potential urgency surrounding cannabis legalization will greatly benefit the industry.”

Although the target for the new venture capital fund is undisclosed, the fundraising effort has more than doubled Casa Verde’s initial investment capacity.

Likewise, Aurora Cannabis recently announced raising approximately $125 million through the sale of 12 million shares at a unit price of $10.45. The funds will be allocated towards general corporate purposes, potentially including debt reduction.

In the realm of psychedelic research, Berlin-based biotech company Atai Life Sciences secured $125 million in Series C funding last year. The round was led by Apeiron Investment Group, Catalio Capital Management, and billionaire Peter Thiel, co-founder of PayPal and an early investor in Facebook.

Atai stated, “The financing proceeds will primarily support the pre-clinical and clinical development of Atai’s existing mental health programs, expansion of the drug candidate pipeline, and further advancement of Atai’s platform technologies.” The firm focuses on developing treatments for mental health conditions.

Florian Brand, CEO and co-founder of Atai Life Sciences, emphasized, “We believe that our psychedelic and non-psychedelic compounds hold significant therapeutic promise, supported by a growing body of scientific evidence. This funding round is another step towards realizing our vision of effectively treating and ultimately preventing mental health disorders, bridging the gap between the current offerings of the mental health system and the needs of patients.”

Atai chairman Christian Angermayer added, “With COVID-19 accentuating the shortcomings of existing care standards, we find ourselves at a turning point in addressing this global mental health crisis more seriously.”