Cannabis stocks rolled down on Tuesday, continuing to drop after weakness on Monday.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, was down 1.8% to 282.68 points by Tuesday's close. The Horizons Marijuana Life Sciences Index ETF was down 2.7% at C$20.55.
Buds
Aleafia Health Inc (TSE:ALEF) (OTCMKTS:ALEAF) shares continued to jump Tuesday, after it announced Monday it is entering the German medical cannabis market via its joint-venture with German pharmaceutical wholesaler Acnos Pharma GmbH.
Shares were up 5.6% at C$1.71 in Canadian trading, up 4.9% at US$1.29 in New York.
“We are delighted to soon see the export of our cannabis health and wellness products to the world’s largest medical cannabis market in Germany,” said Aleafia Health Chairman Julian Fantino in a statement. “By leaning on our own core competencies of producing high-margin value added products and leveraging the local supply chain expertise of our outstanding partners, we have significantly strengthened our international footprint and done so faster and at a fraction of the cost of an acquisition.”
READ: True Leaf taps Mars Petcare exec Kevin Cole to lead its pet division
Also gaining Tuesday was True Leaf Medicine International Ltd (CSE:MJ) (OTCMKTS:TRLFF), with shares up 1.1% at C$0.47 in Toronto.
The Vernon, BC-based cannabis and hemp wellness brand for pets announced it has added an executive from the world's largest pet food company to lead its pet division.
Kevin Cole, a former vice president of marketing at Mars Petcare, joins the cannabis for pets brand as president of True Leaf Pet.
GrowGeneration Corp (OTCMKTS:GRWG) reported its 1Q financial results Tuesday, sending shares soaring, up 19.1% at US$3.24.
The company, which has operations in eight states, reported a net profit of US$229,421 in the quarter, compared to a loss of US$953,430 in the year-ago period. Revenue was up at US$13.1 million from $4.4 million in the same period a year earlier.
Duds
Along with the buds, there were some duds on Tuesday.
Planet 13 Holdings Inc (OTCMKTS:PLNHF) continued to fall, down 6.5% at US$2.15.
The company, which operates the world's largest cannabis dispensary in Las Vegas, reported on Tuesday that it served 1,962 customers per day in April at an average ticket of US$89.62. This is slightly down from the 1,987 customers per day it reported in March. The company also released its Q4 financial results (ended December 31, 2018) last week, posting a net loss of US$4.0 million as compared to a net profit of $259,493 in the same period in 2017.
Cronos Group Inc (NASDAQ:CRON) (TSE:CRON) shares continued to drop on Tuesday, down 5.5% at US$15.44 in New York and down 5.4% at C$20.66 in Toronto.
The company announced Tuesday that it is expanding its global infrastructure network and innovation capabilities and will open a cannabinoid device research and development facility, based in Israel.
"Vapor is already one of the most popular forms of cannabis consumption, and we see a clear opportunity for Cronos Group to introduce the next-generation of vaporizer products designed specifically for cannabinoid formulations," said CEO Mike Gorenstein in a statement.
Last week, analyst Piper Jefferies cut the target price for Cronos to C$15 from C$17, on the back of expectations of a lower share in Canada’s recreational market.
Contact Katie Lewis at katie@proactiveinvestors.com
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