Cannabis stocks hit reverse on Tuesday after a slew of earnings failed to impress investors across North America.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada lost 2.3% to 140 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF sank 1.7% up to C$10.76, while the OTCQX Cannabis Index dropped 2.9% to 474 points.
Duds
Cannabis retailer MedMen Enterprises Inc (CSE:MMEN) (OTCMKTS:MMNFF) led the way downwards after reporting it had nearly doubled its net loss in fiscal 2019.
The Los Angeles-based company posted a loss of US$227 million compared to nearly US$114 million for the same period a year prior. During 4Q, the company generated revenue of US$42 million, up 104% year over year, but net losses of US$82.9 million.
Changing macroeconomic conditions forced the company to refocus its strategy, reevaluate assets and determine where it makes most sense to allocate capital going forward, according to MedMen’s CEO Adam Bierman.
Investors responded by sending MedMen’s stock lower 17.2% in Canada and 18.7% on OTC markets.
HEXO Corp (TSE:HEXO) (NYSE:HEXO) posted 4Q results on Tuesday morning that propelled the company into the red.
The cannabis producer lost C$56.7 million in its latest quarter compared with a loss of C$10.5 million in the same quarter a year ago.
HEXO’s shares fell 2.6% in Toronto and 4.3% in New York.
Buds
It wasn’t all bad news for cannabis investors on Tuesday.
CB2 Insights Inc (CSE:CBII) (OTCMKTS:CBIIF) was up 5.9% after announcing a new agreement with VIVO Cannabis Inc (CVE:VIVO) (OTCMKTS:VVCIF) to help patients choose the right medical cannabis treatment.
The cannabis data analytics company announced that it signed a new research agreement with VIVO to help the cannabis producer develop a new global medical product development strategy.
Meanwhile, MYM Nutraceuticals Inc (CSE:MYM) was in for a wild day on Tuesday as its stock rocketed 36.8% higher, sending investors into a frenzy.
The Vancouver-based company is awaiting its cultivation license from Health Canada for a new facility based in Laval, Quebec.
Contract Angela at angela@proactiveinvestors.com
Follow her on Twitter @AHarmantas