Cannabis stocks made soft gains Friday to end a bit of a rocky week for the sector.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, gained 0.8% to stand at 140 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF increased 0.9% to C$11.09, while the OTCQX Cannabis Index inched 0.4% higher to 490.2 points.
Buds
MedMen Enterprises Inc (CSE:MMEN) (OTCMKTS:MMNFF) got a boost Friday after the company announced the opening of two new cannabis stores in Florida.
The company now operates seven stores in the state, with five more openings planned for this calendar year. All told, MedMen is licensed for 35 retail locations in the state.
MedMen shares climbed 1.2% to US$1.24 on OTC Markets.
Aphria Inc (TSE:APHA) (NYSE:APHA) continued to build on its strong week.
On Wednesday, the Australian Financial Review reported that the company was planning to sell the majority of its stake in Melbourne-based cannabis producer Althea Group Holdings Ltd.
Shares of Aphria rose 6.6% to C$7.15 on the TSX and 6.6% to US$5.48 on the NYSE.
Others on the rise to end the week were consumer products and drug development company CV Sciences Inc (OTCMKTS:CVSI), which ascended 6.5% to US$2.28 and cannabis producer OrganiGram Holdings Inc (OTCMKTS:OGI), which traded 2.5% higher at C$4.80 on the TSX and 3.2% higher at US$3.67 on the Nasdaq.
Duds
HEXO Corp (TSE:HEXO ) (NYSE:HEXO) struggled again this week after being downgraded to Underperform by analysts at CIBC Capital Markets. The firm offered a price target of C$3, 9% below its Tuesday closing price.
The downgrade follows a decision from the company to eliminate 200 jobs, cuts which the firm said “reveal a situation more challenging than previously contemplated,” according to MarketWatch.
Hexo shares fell 3.6% to C$3.19 on Bay Street and 3.4% to US$2.44 on Wall Street.
CannTrust Holdings Inc (TSE:TRST) (NYSE:CTST) shares lost value after the beleaguered company said Thursday that it had completed an internal investigation and decided to make workforce cuts.
The company, which was busted earlier this year for growing cannabis in unlicensed rooms and had its production license suspended, sent a remediation plan to Health Canada on October 21.
The plan includes destroying all unauthorized inventory and assets, expanding its internal training program and strengthening its governance. CannTrust expects to complete those steps by the end of the first quarter of 2020.
Investors weren’t buying it, at least not yet. Shares fell 3.4% to C$1.68 in Toronto and 3.6% to US$1.28 in New York.
Others ending the week on a sour note were Tilray Inc, which descended 2.7% to US$23.72 on the Nasdaq and medical-use cannabis facility company Innovative Industrial Properties Inc, which lost 1.6% to US$71.31 on the NYSE.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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