Cannabis stocks tumbled sharply on Tuesday, with drops across the board.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, dropped 1.7% to 297.79 by Tuesday's close. The Horizons Marijuana Life Sciences Index ETF was down 1.3% at C$21.29.
Duds
Sunniva Inc (CSE:SNN) (OTCQB:SNNVF) shares slid steeply on Tuesday after it released reported disappointing fiscal 2018 results.
The company reported $18.8 million in revenue for the year-end period ending December 31, 2018, up from $16.1 million in 2017. Its net losses for 2018, however, rose to C$29 million versus C$17.5 million in The net loss for 2018 rose to $29 million versus last year’s $17.5 million, with the increase in net losses attributed to the company's growth in 2018, as its US operations in California expanded.
Markets responded, sending shares down 10% at US$3.51 in New York, down 11.1% at C$4.65 in Toronto.
Tilray Inc (NASDAQ:TLRY) shares continued to slip on Tuesday, down 2.7% at US$51.33 after Piper Jaffray analyst Michael Lavery lowered the price target to $84.00, from $90, but maintained an Overweight rating on Monday. Year-over-year, shares of Tilray are down around 25%.
Other laggards on Tuesday included HEXO Corp. (TSE:HEXO) (NYSEAMERICAN:HEXO) shares were dipping Tuesday, down 6% at C$10.44 in Toronto, off 5.6% at US$7.82 in New York. Hexo's shares have more than doubled this year.
Buds
There were a number of buds on Tuesday.
Redfund Capital Corp (CSE:LOAN) (OTCMKTS:PNNRF) shares jumped on Tuesday after it announced plans to list on the OTCQB exchange to broaden the company’s investor base in the US.
Shares of Redfund were up 3.4% at C$0.15.
The cannabis merchant bank will trade under the ticker symbol “PNNRF.” It will continue to trade on the Canadian Securities Exchange as well as the Frankfurt Exchange.
"The listing of Redfund’s common stock to the OTCQB Exchange is an exciting milestone,” said Meris Kott, CEO of Redfund in a statement. “Even though Redfund has been a fully reporting company since its inception and listing to the Canadian Securities Exchange, or CSE, we believe that the broader exposure afforded by the OTCQB will raise our visibility within the US investment community and assist in increasing the liquidity of our common stock.”
READ: Redfund Capital to start trading on US exchange
OrganiGram Holdings Inc (OTCMKTS:OGRMF) (CVE:OGI) continued to rise on the back of gains Monday, up 3% at US$7.45 in New York and up 2.3% at C$9.97 in Toronto midday.
On Friday, the Moncton, New Brunswick-based company announced that it has applied to list its common shares on the NASDAQ Global Select Market, thanks to increased investor interest in the US and abroad.
Other gainers on Tuesday included The Green Organic Dutchman Holdings Ltd (TSE:TGOD) (OTCMKTS:TGODF), which announced that its extraction processing provider, Valens GroWorks Corporation (CSE:VGW) (OTCMKTS:VGWCF), received organic certification from Pro-Cert Organic Systems Ltd.
Shares of TGOD were up 2.8% at C$4.48 in Toronto, up 2.8% at US$3.35.
READ: The Green Organic Dutchman's extraction processing provider gets organic certification
"TGOD has been committed to organic since day one. Working with service providers who embrace organic as much as we do is paramount. I want to congratulate the team at Valens for obtaining their organic certification," CEO Brian Athaide said in a statement. "We look forward to delivering certified organic oils of the highest standards to our patients and customers."
Contact Katie Lewis at katie@proactiveinvestors.com