The Dow Jones Industrial Average plunged into the red Thursday afternoon to shed more than 500 points, but North American cannabis stocks shook off the gloom to hold steady.
There are far more buds than duds in afternoon trade across both the Canadian and US markets with the North American Marijuana Index adding 7.3 points to hit 228.81.
Hexo (TSX:HEXO), the first licensed cannabis producer in Quebec, is taking the lead, having risen 9% to C$5.680. The Gatineau, Quebec-based company recently reassured investors by saying its 1 million square foot greenhouse expansion is ready and on budget for plants to move in.
Also on the list of top gainers is The Canopy Rivers Inc (TSXV:RIV), which rose 6% to C$3.36. The jump in Canopy Rivers share price came after the investment firm revealed it has retained Hybrid Financial to provide investor relation services. Canopy Rivers works with the cannabis behemoth Canopy Growth (TSX:WEED; NYSE:CGC) to identify counterparties seeking financial and operating support.
Another stand-out is MariMed Inc (OTCQB:MRMD), a US cannabis company that also offers a hemp product line and stands to benefit from the passage of the 2018 Farm bill, which legalizes industrial hemp. MariMed shares jumped 8.2% to US$3.83 in Thursday’s afternoon trade.
The Supreme Cannabis Company (TSXV:FIRE; OTCQX:SPRWF) popped too by 5.4% to hit C$1.57. The Canadian cannabis group recently completed a new phase of construction for its greenhouse in Kincardine, Ontario. The facility is being used for Supreme’s 7Acres brand and now boasts 19 operational flowering rooms.
High on the list of duds, meanwhile, is Auxly Cannabis Group (TSXV:XLY), which is off 6.25% at C$0.90. The cannabis company, which has operations across Canada and Uruguay, recently appointed two new independent members of its board of directors, Genevieve Young, the chief operating officer of the consultancy Global Public Affairs, and Jean-Paul Gaillard, the founder and CEO of the Ethical Coffee Company.
Canopy Growth (NYSE:CGC) is also trading down 1.4% at US$28.51. The slip in shares comes in the wake of reports that its new UK subsidiary Spectrum Biomedical will begin importing and distributing cannabis to UK pharmacies in the first half of this new year.
Rounding out the list of laggards is Aurora Cannabis Inc (TSX:ACB), which is down 1.69% at C$6.97 and Innovative Industrial Properties (NYSE:IIPR), a real estate investment trust specializing in the medical marijuana sector, which is off 0.95% at US$45.48.
Contact Ellen Kelleher at [email protected]