logo-loader

Buds & Duds: Cannabis stocks get back to growing; CannTrust begins to earn back investor confidence

Published: 16:39 15 Oct 2019 BST

Cannabis stocks gaining graphic

Cannabis stocks showed signs of life Tuesday, turning around losses suffered late last week. 

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, moved 6.5% higher to 137.4 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF rose 5.9% to C$10.97, while the OTCQX Cannabis Index grew 3% to 501.6 points.

Buds

In a bid to earn back its Health Canada licenses, CannTrust Holdings Inc (TSE:TRST) (NYSE:CTST) announced Monday that it would destroy C$77 million worth of unauthorized inventory and plants.

The company said in a statement that it plans to submit a plan of remediation to Health Canada by October 21.

Investors took the news as a step in the right direction, rocketing shares 40% higher to C$1.68 on Bay Street and 22% to US$1.27 on Wall Street.

Aphria Inc (TSE:APHA) (NYSE:APHA) shares soared after the company reported fiscal first quarter income beat Street expectations. The company earned C$16.4 million on revenue of C$126.1 million. According to analysts polled by Bloomberg, the Street expected an adjusted loss of C$7.7 million. 

Its stock jumped nearly 14% to C$7.07 in Toronto and 22% to US$5.35 in New York. 

1993 Industries Inc (CSE:TGIF) (OTCMKTS:TGIFF) saw its stock rise 4.4% to C$0.24 on the CSE and 9% to US$0.18 on OTC Markets. The company put out a corporate update Tuesday morning, highlighting for investors its expansion in Nevada and California and its anticipated record quarterly revenue.

The Green Organic Dutchman Holdings (TSE:TGOD) (OTCMKTS:TGOF) was another gainer, as shares increased 8.4% to C$1.29 on the TSE and 11% to US$1 on OTC Markets.

Duds

Only a handful of companies missed the rising cannabis tide, but among them was Emerald Health Therapeutics Inc (CVE:EMH) (OTCMKTS:EMHTF), which dropped 11% to C$0.89 on the TSX Venture Exchange and 7.7% to US$0.68 on OTC Markets.

Meanwhile, Isodiol International Inc (CSE:ISOL) (OTCMKTS:ISOLF) lost 9.1% to US$0.19, and Tidal Royalty Corp (CSE:RLTY.U) (OTCMKTS:TDRYF) fell 9.1% to US$0.10.

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com 

Follow him on Twitter @andrew_kessel

Chesnara reports strong 2023 results with improved cash generation and...

Chesnara PLC (LSE:CSN) chief executive Steve Murray discusses the company's full-year results for 2023 with Proactive's Stephen Gunnion, describing them as strong and particularly highlighting £53 million in commercial cash generation and a dividend coverage of around 150%. The company has...

39 minutes ago