Tokers & Jokers | Cannabis Stocks On The Dip

Wednesday US and Canadian cannabis stocks were broadly down Wednesday with only a few gainers making the board.

Trading was halted for Green Growth Brands (OTCMKTS: GGBXF) (CSE: GGB) and Aphria Inc (NYSE: APHA) Tuesday after Green Growth made a formal takeover bid to acquire Aphria. Critics of the offer question the viability of Green Growth’s proposal, unenthusiastic acquisition price, and logistics. Aphria issued a statement in response to the offer saying the $2.06B proposal undervalued the company. Aphria urged shareholders to take no action until its Board issues formal recommendations. Green Growth closed down 2.20% on the OTC at $4.38.

CIBC analyst John Zamparo recently initiated coverage on Aphria, Cronos, and Canopy Growth. With recent concerns regarding the company’s corporate governance and capital allocation having at least some validity, Zamparo admits CIBC is on the sidelines when it comes to Aphria. Aphria has recently been accused of self-dealing and will be entering into a class-action lawsuit in February. Aphria stock lost 2.26% and was trading at $6.92.

Zamparo was bullish on Cronos Group (NASDAQ: CRON) calling the company’s management team “best in class.” Tuesday Zacks gave the stock a “strong sell” ranking. Last week the company sent out materials for their upcoming meeting of shareholders to be held on Feb. 21, 2019. Cronos was down 2.32% at the end of trading at $14.72.

Canopy Growth Corp. (NYSE: CGC) also received a bullish endorsement from CIBC, calling the company the industry’s best chance at a global titan. The company recently was approved for an operating license in New York. Canopy also issued an update regarding expansions in the UK and Poland through its Spectrum Cannabis subsidiary. The company closed down 0.48% and was trading at $43.45.

In order to improve low-income patient access to medicinal cannabis Organigram Holdings Inc. (OTCMKTS: OGRMF) (CVE: OGI) announced it has made changes to its compassionate care model by developing OrganiCare. The company also announced it has entered into a class action lawsuit for cannabis that was produced between Feb. 1 and Dec. 16, 2016. Organigram is accused of using unauthorized pesticides. Organigram gained 0.24% on the OTC and was trading at $4.69.

Curaleaf Holdings (OTCMKTS: CURLF) (CSE: CURA) joined the New Jersey Business & Industry Association as the first cannabis company to join the 20,000 member organization. The company was trading up 3.04% at $5.99.

Tilray (NASDAQ: TLRY) has been making numerous strategic partnerships recently. Yesterday, Tilray announced that it intends to acquire Natura Naturals Holdings Inc. for CA$35M (about $26.3M) — a maneuver that will double the company’s production capacity. Tilray shares were down 1.46% and trading at $71.74.

Don’t let the dip fool you. The Green Organic Dutchman Holdings Ltd. (OTCMKTS: TGODF) (TSE: TGOD) has a lot of potential to ramp up its hemp and CBD production. In 2019 the company should produce 14,000 kilograms of marijuana, with a facility under construction that will boost production to 140,000 kilograms annually. The Green Organic Dutchman was trading up on the OTC by 3.52% at $2.29.

Expected growth for Innovative Industrial Properties Inc. (NYSE: IIPR) in 2019 is a whopping 68.7%. The company was recently given a “hold” rating on Zacks with its current fiscal-year earnings estimated to have risen 1.8% in the last 90 days. Innovative ended the day trading up 1.72% at $56.93.

Aurora Cannabis’ (NYSE: ACB) CCO Cam Battley discussed the $300M convertible debenture that has been weighing on Aurora’s stock since announcement. Shareholders fear further dilution. Battley confirmed that the company intends to settle the notes in cash without additional dilution. Battley is excited about the institutional shareholders that took part in the deal, hoping more institutional investors will bring stability and reduce volatility. Shares of Aurora had no change Wednesday and were trading at $6.19.

Zacks gave Neptune Wellness Solutions (NASDAQ: NEPT) a “strong buy” rating, and a $6.06 target price. The company announced it has received its Health Canada licenses in early January and is pushing ahead with commercialization. Neptune gained 3.28% and was trading at to $3.46.

Acreage Holdings Inc. (OTCMKTS: ACRGF) (CNSX: ACRG.U) attempted to submit a cannabis ad for the Superbowl. CBS rejected the ad on Tuesday, sparking national attention from the cannabis community. The company was up on the OTC by 0.18% and trading at $21.94 at the end of the day.

Expected to gain 4.2% in the next quarter, Zacks also gave GW Pharmaceuticals (NASDAQ: GWPH) a “hold” rating. The company has outperformed the medical products this year — 40.9% to 2.9%. GW Pharmaceutical was lost 2.52% and was trading at $135.75.

Hexo Corp. (NYSE: HEXO) (TSE: HEXO) began trading on the New York Stock Exchange today ending the day trading down by 2.13% and trading at $5.19.

MedMen Enterprises Inc (OTCMKTS: MMNFF) (CNSX: MMEN) announced they will be merchandising and selling Halo Labs Inc.’s latest product DabTabs, a new mess-free way to consume concentrates. The company recently denied allegations of insider self enrichment and abandonment of fiduciary duties. MedMen was down Wednesday by 0.15% on the OTC and trading at $3.04.

MJardin Group Inc. (OTCMKTS: MJARF) (CSE: MJAR) recently had its common stock upgraded to the OTCQX Best Market. The company climbed 6.49% and was trading at $3.00.

Cresco Labs (OTCMKTS: CRLBF) (CSE: CL) announced that it has nearly 400 cured cannabis plants that are being prepped for the Ohio market. The company’s dispensary kicked off Ohio’s first legal medicinal cannabis sales last week. Cresco was down 0.054% on the OTC and trading at $6.51.

Auxly Cannabis Group Inc. (OTCMKTS: CBWTF) and FSD Pharma Inc (CSE:HUGE) (OTCQB: FSDDF) are currently developing the world’s largest indoor hydroponic cannabis production and processing facility. Auxly was recently granted an “outperform” rating from AltaCorp. The company was down 0.46% at $0.67.

FSD Pharma Inc hired Rupert Haynes, a previous executive from GW Pharmaceuticals as the company’s new CEO. The company was trading down on the OTC by 5.83% at $0.23.

Northland Capital Markets recently initiated coverage on iAnthus Capital Holdings (OTCMKTS: ITHUF) with an “outperform” rating and a $9.50 price target. The company also recently announced it has acquired all issued and outstanding shares of MPX Bioceutical Corporation. iAnthus lost 0.074% and was trading at $4.61.

Namaste Technologies Inc. (OTCMKTS: NXTTF) (TSXV: N) had no change of price on the OTC at $1.02.

MariMed Inc (OTCQB: MRMD) announced that it is forming MariMed Hemp Inc. as a subsidiary that will handle hemp-derived CBD product branding and production. MariMed closed the day up 6.13% at $4.50.

MediPharm Labs (TSXV: LABS) (OTCQB: MLCPF) recently announced a multi year cannabis extraction agreement with TerrAscend Corp (CSE: TER) (OTCMKTS: TRSSF). MediPharm also began trading on the OTC last Monday under ticker “MLCPF”. MediPharm was up 0.33% at $1.47 at the close of trading.

TerrAscend Corp was up on the OTC 6.53% trading at $5.69.

Sunniva Inc (CSE: SNN) (OTCQB: SNNVF) announced a $10M non-brokered offering to provide working capital in response to a high demand for Sunniva products. The company was trading down 4.06% at $3.31.

Don’t judge a book by its cover. CannTrust Holdings Inc. (OTCMKTS: CNTTF) (TSX: TRST) stock is suffering from a recent price dip. The company recently announced it has filed an application to list on the NYSE. CannTrust is also moving to Phase III construction of its Town of Pelham facility. CannTrust lost 3.73% on the OTC, trading at $6.59.

Origin House (OTCMKTS: ORHOF) (CNSX :OH) closed the sale of 51% of its 10% equity stake in Bodhi Research. The company was trading up 0.97% and trading at $6.12.

Last week New Age Beverage Co. (NASDAQ: NBEV) announced the signing of an agreement to develop and distribute Bob Marley branded cannabis infused beverages. New Age saw a gain of 6.81% Wednesday trading at $6.43.

Horizons ETFs Management Canada Inc. (TSE: HMMJ) announced the launch of the Horizons Equal Weight Canada REIT Index ETF (“HCRE”) and the Horizons Equal Weight Canada Banks Index ETF (“HEWB”). HMMJ lost 0.82% and was trading at $18.05.

The Horizons Marijuana Life Sciences Index ETF (OTC: HMLSF) lost 0.81% and trading at $13.50.

ETFMG Alternative Harvest ETF (NYSEARCA: MJ) is up 30.8% since the start of the year. The ETF was trading down 0.94% at $30.65.

The North American Marijuana Index tracks the leading cannabis stocks in the US and Canadian Sectors. The Index lost 1.11% and trading at $259.68.

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