Cannabis stocks were in negative territory Thursday, trading in the same direction as the Dow Jones Industrial Average and opposite the S&P/TSX Composite Index.
The North American Marijuana Index, which tracks the leading cannabis stocks in the US and Canada, was down 1.1% to 273.95.
Duds
Canopy Growth Corp (NYSE:CGC) (TSE:WEED), the cannabis stock with the biggest market cap, dropped 1.9% to US$45.17 in New York before its scheduled publication of earnings after the closing bell.
The stock gained Wednesday after Wells Fargo analyst Bonnie Herzog reportedly said the decision by Constellation Brands Inc (NYSE:STZ) to invest in the cannabis company was the “right one.”
Canopy Growth's shares fell 1.7% to C$60.09 in Toronto on Thursday.
Declining in line with the broader cannabis market were stocks including MedMen Enterprises Inc (OTCMKTS:MMNFF), which fell 5.1% to US$2.79 in OTC Markets trading.
Separately, the Los Angeles cannabis retailer announced Wednesday that it closed the acquisition of Kannaboost Technology Inc and CSI Solutions LLC.
The deal includes retail locations in Scottsdale and Tempe in Arizona, as well as 25,000 square feet of cultivation and production capacity in Tempe and Phoenix.
Buds
Next Green Wave Holdings Inc (OTCMKTS:NXGWF) (CSE:NGW) climbed 9.7% to US$0.48 after announcing a preliminary agreement to invest in a company with a Colombian medical cannabis subsidiary.
The Vancouver-based company entered into a memorandum of understanding with Organic Medical Growth OMG3 Inc, a Montreal outfit whose wholly owned Colombian unit, Proymed SAS, produces non-psychoactive cannabidiol products.
Organic Medical Growth is pursuing an initial public offering, according to Next Green Wave.
Shares of Next Green Wave rose 13% to C$0.63 in Canada.
Crop Infrastructure Corp (OTCMKTS:CRXPF) gained 8.2% to US$0.26 after Elite Ventures, its 49%-owned subsidiary, reported that a Nevada tenant known as Hempire has been issued production and extraction licenses.
The licenses cover 1,350 irrigated acres on 2,115 acres of owned or leased lands devoted to cannabidiol.
"With the increased size and operating range of our tenant's licenses, CROP's Nevada CBD operations are emerging into a truly world-class operation,” CROP CEO Michael Yorke said in a statement.
Shares of CROP rose 3.1% to C$0.34 in Canada.
Contact Dennis Fitzgerald at dennis@proactiveinvestors.com