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Buds & Duds: Canopy Growth declines after announcing C$30M investment boost for Canopy Rivers spin-off

Also on the move are Next Green Wave Holdings, Redfund Capital and Tilray

Marijuana leaves and US currency
The North American Marijuana Index was down, moving in the direction of the Dow

Cannabis stocks in the US and Canada were in negative territory Thursday, trading in the same direction as the Dow Jones Industrial Average and the S&P/TSX Composite Index.

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, decreased 2.2% to 277.29.

DUDS

Canopy Growth Corp (NYSE:CGC) (TSE:WEED) slipped 1.3% to US$45.92 in New York trading after announcing that it plans to increase its total investment in its spinoff Canopy Rivers Inc (OTCMKTS:CNPOF) by C$30 million.

The Canadian cannabis company will make the investment through a private placement of subordinated voting shares that is being led by CIBC Capital Markets and Eight Capital. The deal is expected to close in late February.

Canopy Growth was down 0.2% to C$61.29 in Canadian trading. Canopy Rivers, an investment vehicle, fell 1.4% to $3.59 on the OTC Markets and was down 1.3% to C$4.74 in Canada.

Tilray Inc (NASDAQ:TLRY) dropped in line with the broader cannabis market, falling 0.9% to US$77.45.

The Nanaimo, British Columbia, cannabis company announced four executive hires: Greg Christopher, executive vice president of operations, formerly with NestleRita Seguin,  executive vice president for human resources, formerly with Diageo PLC (NYSE:DEO)Dara Redler, general counsel, formerly with The Coca-Cola Co (NYSE:KO); and Charlie Cain, vice president of retail, formerly with Starbucks Corp (NASDAQ:SBUX).

The company also announced the appointment of Sascha Mielcarek as managing director for Europe. He most recently served in an executive role at Grünenthal, a German drug company.

BUDS

Next Green Wave Holdings Inc (OTCMKTS:NXGWF) (CSE:NGW) climbed 1.2% to US$0.48 after announcing that its shares trading on the OTCQB venture market are now eligible for electronic clearing and settlement through the Depository Trust Co in the US.

“As a direct result of Next Green Wave’s DTC eligibility, the company is now accessible to all US investors and institutions,” CEO Leigh Hughes said in a statement.

The stock was up 1.6% to C$0.63 in Canadian trading.

Redfund Capital Corp (CSE:LOAN) gained 3.9% to C$0.26 after saying it recruited Wingspan Advisors and marketing expert Jerry Hug as it kicks off a US-focused investment plan.

The team plans to focus on the cannabidiol and hemp sector as it looks for investment opportunities in the US for the cannabis company financer.

Contact Dennis Fitzgerald at [email protected]

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