Despite Friday’s rebound, this was a bad week for the U.S. stock market.
Cannabis stocks followed a very different trajectory, with the United States Marijuana Index, which tracks 15 of the largest marijuana stocks in the U.S., posting a loss of 2.34 percent Friday, but still closing the week up 4.2 percent. The North American Marijuana Index, which also includes Canadian stocks, gained 2.1 percent this week.
The Horizons Marijuana Life Sciences Index ETF HMLSF gained 24.7 percent over the last five days, while the ETFMG Alternative Harvest ETF MJX rose 5.8 percent.
Here are some of the top marijuana stocks in U.S. exchanges and how the performed this week:
- 22nd Century Group Inc XXII: down 0.37 percent
- Aphria Inc APHQF: up 27.8 percent
- Aurora Cannabis Inc ACBFF: up 32.2 percent
- Cannabis Sativa Inc CBDS: down 11.75 percent
- CannTrust Holdings Inc CNTTF: up 2.15 percent
- Canopy Growth Corp TWMJF: up 15.2 percent
- Cronos Group Inc PRMCF: up 48.4 percent
- GW Pharmaceuticals PLC- ADR GWPH: down 5.3 percent
- India Globalization Capital, Inc. IGC: down 23.6 percent
- MedReleaf Corp MEDFF: up 19.3 percent
- Scotts Miracle-Gro Co SMG: down 1.5 percent
- THC Biomed Intl Ltd THCBF: up 8.6 percent
- Zynerba Pharmaceuticals Inc ZYNE: up 3.75 percent
In The News
Phyto Partners, one of the largest private equity investment funds in the cannabis industry, announced Phyto II, LP, a $100 million venture capital fund dedicated to investing in privately held cannabis companies. According to Managing Partner Larry Schnurmacher, “Phyto II fund will focus on companies that enable licensed operators, the growers and dispensaries, to operate compliant and successful businesses. These ancillary businesses will benefit greatly from the growth of the industry and the billions of dollars that have been raised by the licensed operators.”
Shares of Alliance One International, Inc. AOI, a tobacco company, gained more than 22 percent Friday, after the company revealed several investments in cannabis and hemp companies, both in the U.S. and Canada.
“One thing you can always count on in the cannabis space is a good surprise, and we got one this week, with Alliance One International announcing the acquisition of controlling stakes in Canada's Island Garden, a licensed producer that is generating revenue, and another ACMPR applicant, Goldleaf Pharm,” 420 Investor Alan Brochstein told Benzinga.
Alliance One also acquired a 40 stake in a North Carolina-based hemp-derived CBD company. “This is not only exciting in and of itself, but is also likely a precursor for more of these cross-border deals ahead,” Brochstein said, referencing the American tobacco company’s investments in Canadian companies.
The Canadian Securities Administrators (CSA) said it decided to continue with the policy of disclosure for Canadian-listed companies with U.S. cannabis operations. “After the rescission of the Cole Memo, they announced a policy review, and it was possible that these companies might have had to exit their CSE listings and use their OTC listings alone,” Brochstein explained.
On the earnings front, we saw reports out of Aurora Cannabis and GW Pharmaceuticals. For the second quarter of fiscal 2018, Aurora reported revenues of $11.7 million, more than tripling last year’s sales, and gross profits of $6.9 million, up 374 percent year-over-year. The company said its strong results were, in a large portion, driven by strong exports to and sales in Germany.
For its part, GW Pharmaceuticals delivered first quarter revenues of $7.7 million, more than tripling last year’s. Despite strengthening sales, the company is still losing money, with net losses reaching $63.3 million, up more than 200 percent year-over-year.
Cronos Group announced the launch of Cronos Australia a 50/50 joint venture with NewSouthern Capital Pty Ltd.
Paragon announced its next “Blunt Talk” will be held at the headquarters of cannabis business accelerator CanopyBoulder on Feb. 13. Speakers include Tyler Tarr, Publisher at Sensi Magazine, Kelly Perez, CEO at kindColorado, Courtney Mathis, President at kindColorado, Brendan Patrick Gillis, CEO at Vaporslide, Brittany Centifanto, GM of Roots Rx Facilities and Andrew Warren, Community Liason at Paragon, Sales Director at Smokus Focus, Business Development Consultant at HRVST Labs.
Finally, Canopy Growth closed a $200 million bought deal, selling 5.8 million shares of the company at $34.60 per share.
Picture by Javier Hasse
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