US and Canadian cannabis stocks rebounded Thursday, bouncing back from yesterday’s turbulence.
Tuesday trading was halted for Green Growth Brands (OTCMKTS: GGBXF) (CSE: GGB) and Aphria Inc (NYSE: APHA) after Green Growth made a formal takeover bid to acquire Aphria. If executed, the bid will be the largest cross-border takeover in the cannabis industry to date. Which brings into question how shareholders will react if Aphria is removed from the New York Stock Exchange. The CA$2.8B all-stock bid has been seen as an unenthusiastic offer that undervalues Aphria’s position. Purpose Investments’ portfolio manager Greg Taylor told Bloomberg that he doesn’t see a scenario where Aphria isn’t bought out. Aphria urged shareholders to take no action until its Board issues formal recommendations.
Green Growth closed down 0.68% on the OTC at $4.34.
CIBC analyst John Zamparo recently initiated coverage on Aphria, Cronos, and Canopy Growth. Zamparo admits CIBC is on the sidelines when it comes to recent concerns regarding Aphria’s corporate governance and capital allocation. Aphria was recently accused of self-dealing and insider enrichment. The company will be entering into a class-action lawsuit in February. Aphria stock was up 0.29% and was trading at $6.94.
Zamparo gave Cronos Group (NASDAQ: CRON) a bullish endorsement, calling the company’s management team “best in class.” Tuesday Cronos closed a $65M secured non-revolving term loan credit facility The company recently sent out materials for their upcoming meeting of shareholders to be held on Feb. 21, 2019. Earlier this week, Zacks gave Cronos a “strong sell” ranking. Cronos was up 6.66% at the end of trading at $15.70.
CIBC also gave Canopy Growth Corp. (NYSE: CGC) a strong endorsement, calling the company the industry’s best chance at a global titan. Yesterday Zacks issued a “Hold” rating on the stock, estimating yearly earnings of -$1.13 per share and revenue of $210.22M. Canopy was recently approved for an operating license in New York, and also issued an update regarding expansions in the UK and Poland through its Spectrum Cannabis subsidiary. The company closed up 1.82% and was trading at $44.21.
Organigram Holdings Inc. (OTCMKTS: OGRMF) (CVE: OGI) announced it has made changes to its compassionate care model by developing OrganiCare. OrganiCare is intended to improve access to medicinal cannabis for low-income patients. The company is entering 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 lost 1.72% on the OTC and was trading at $4.61.
Matt Bottomley, director of equity research and cannabis analyst with Canaccord Genuity Group (OTCMKTS: CCORF) (TSX: CF) announced Curaleaf Holdings (OTCMKTS: CURLF) (CSE: CURA) as his top stock-pick of the year. Canaccord was trading up 0.94% to $4.49.
Curaleaf joined the New Jersey Business & Industry Association as the first cannabis company to join the 20,000 member organization. The company was trading up 0.40% at $6.02.
This morning Zacks gave Tilray (NASDAQ: TLRY) a “Hold” rating. The company has made numerous strategic partnerships recently. Tilray recently announced a $350M partnership with Authentic Brands Group. Additionally, Tilray announced this week 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 up 3.09% and trading at $73.96.
Don’t let the dip fool you. The Green Organic Dutchman Holdings Ltd. (OTCMKTS: TGODF) (TSE: TGOD) is on the climb! The company announced the Ontario Superior Court of Justice approved its spin-off of subsidiary TGOD Acquisitions Corp — an investment firm focused on the Canadian and international cannabis industry. Further, the company has a new facility under construction that will boost production from 14,000 kilograms to 140,000 kilograms annually. The Green Organic Dutchman was trading up on the OTC by 14.41% at $2.62.
In 2019 Innovative Industrial Properties Inc. (NYSE: IIPR) is expected to grow a whopping 68.7%. Innovative released its latest investor presentation, announcing the company had $25.6B annual base rent and property management fees. 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 1.92% at $57.90.
Aurora Cannabis (NYSE: ACB) announced today it has raised $345M through a convertible debt offering. CCO Cam Battley discussed the $345M convertible debenture that has been weighing on Aurora’s stock since announcement. Battley confirmed that the company intends to settle the notes in cash without additional dilution. Shares of Aurora climbed 6.95% to $6.62.
Neptune Wellness Solutions (NASDAQ: NEPT) announced it has received its Health Canada licenses in early January and is pushing ahead with commercialization. The company received a “strong buy” rating from Zacks with a $6.06 target price. Neptune lost 1.16% and was trading at to $3.42.
Sparking national attention, Acreage Holdings Inc. (OTCMKTS: ACRGF) (CNSX: ACRG.U) attempted to submit a cannabis ad for the Super Bowl which was rejected by CBS. The company’s CEO Kevin Murphy told CNBC that he believes the STATES Act — a piece of legislation that would give states authority to govern cannabis operations and allow financial institutions to provide services to the cannabis industry — will be passed this year. The STATES Act would allow cannabis operators like Acreage to operate legitimately. The company was down on the OTC by 4.28% and trading at $21.00 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. Zacks provided estimates for GW Pharmaceuticals PLC-‘s earnings with an expected earnings of $2.97 per share for the current quarter. The company has outperformed the medical products this year — 40.9% to 2.9%. GW Pharmaceutical was gained 1.84% and was trading at $138.25.
Hexo Corp. (NYSE: HEXO) (TSE: HEXO) began trading on the New York Stock Exchange yesterday. The company ended the day trading down by 2.09% and trading at $5.15.
Halo Labs Inc.’s announced MedMen Enterprises Inc (OTCMKTS: MMNFF) (CNSX: MMEN) will be merchandising and selling Halo’s latest product DabTabs, a new mess-free way to consume concentrates. The company recently denied lawsuit allegations of insider self enrichment and abandonment of fiduciary duties. MedMen was up Thursday by 4.61% on the OTC and trading at $3.18.
MJardin Group Inc. (OTCMKTS: MJARF) (CSE: MJAR) recently had its common stock upgraded to the OTCQX Best Market. The company lost 1.44% and was trading at $2.96.
Zacks Investment Research recently downgraded KushCo Holdings Inc. (OTCMKTS: KSHB) to a “Sell” rating. The company recently closed a $34M stock funding that will be used to fund the company’s working capital, technology investments, and help the company scale. Kushco was flat today, closing up 0.37% at $5.43.
Russell Stanley of Beacon Securities initiated coverage on Trulieve Cannabis Corp. (OTCMKTS: TCNNF) (CSE: TRUL) Monday, with a “buy” recommendation. Stanley gave the company a CA$28.00 price target with a projected return of 93%. Trulieve was trading down 2.72% on the OTC at $9.49
Cresco Labs (OTCMKTS: CRLBF) (CSE: CL) recently announced that it has nearly 400 cannabis plants being prepped for the Ohio market. The company’s dispensary kicked off Ohio’s first legal medicinal cannabis sales last week. Cresco was down 0.32% on the OTC and trading at $6.49.
Auxly Cannabis Group Inc. (OTCMKTS: CBWTF) was recently granted an “outperform” rating from AltaCorp. Auxly and FSD Pharma Inc (CSE:HUGE) (OTCQB: FSDDF) are currently developing the world’s largest indoor hydroponic cannabis production and processing facility. FSD Pharma Inc recently hired Rupert Haynes, a previous executive from GW Pharmaceuticals as the company’s new CEO.
Auxly was up 0.57% with no change of price at $0.67.
FSD Pharma was trading down on the OTC by 6.68% at $0.21.
iAnthus Capital Holdings (OTCMKTS: ITHUF) announced it has acquired all issued and outstanding shares of MPX Bioceutical Corporation. Northland Capital Markets recently initiated coverage on the company with an “outperform” rating and a $9.50 price target. iAnthus lost 0.14% and was trading at $4.60.
Namaste Technologies Inc. (OTCMKTS: NXTTF) (TSXV: N) lost 0.49% but had no change of price on the OTC at $1.02.
MariMed Inc (OTCQB: MRMD) recently 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 11.11% at $5.00.
Last Monday MediPharm Labs (TSXV: LABS) (OTCQB: MLCPF) began trading on the OTC under ticker “MLCPF.” MediPharm and TerrAscend Corp (CSE: TER) (OTCMKTS: TRSSF) recently announced a multi year cannabis extraction agreement. MediPharm also began trading on the OTC last Monday under ticker “MLCPF”.
MediPharm lost 1.50% and was trading at $1.45 at the close of trading.
TerrAscend Corp climbed 1.79% closing out the day at $5.79 on the OTC.
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 up 1.51% at $3.36.
With a consensus price target at CA$19.30 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 0.97% on the OTC, trading at $6.53.
Ranked as the second best-performing stock on the OTCQX Best Market, Origin House (OTCMKTS: ORHOF) (CNSX :OH) had a return of 58.9% in 2018. Origin recently closed the sale of 51% of its 10% equity stake in Bodhi Research. The company was trading up 2.47% and trading at $6.27.
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 1.24% Wednesday trading at $6.51.
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 gained 2.02% and was trading at $18.42.
The Horizons Marijuana Life Sciences Index ETF (OTC: HMLSF) gained 2.14% and trading at $13.79.
ETFMG Alternative Harvest ETF (NYSEARCA: MJ) is up 30.8% since the start of the year. The ETF was trading up 1.83% at $31.21.
The North American Marijuana Index tracks the leading cannabis stocks in the US and Canadian Sectors. The Index climbed 1.65% and was trading at $264.15.