Cannabis stocks enjoyed a midweek boost, trading in the same direction of the Dow Jones Industrial Average and the S&P/TSX Composite Index.
The North American Marijuana Index, which tracks the leading cannabis stocks in the US and Canada, was up 0.9% to 277.65.
Youngevity International Inc (NASDAQ:YGYI) gained 13% to US$8.23 in Nasdaq trading after announcing that it has agreed to buy Khrysos Global, the Tampa, Florida, manufacturer of hemp-based cannabidiol extraction equipment, for US$16 million in stock and cash.
The deal is the San Diego e-commerce company’s latest foray into the hemp and CBD market. In January, the company struck an agreement with Icelandic Glacial to develop a ready-to-drink CBD product.
The purchase of Khrysos is expected to close February 15 subject to various conditions.
Canopy Growth Corp (NYSE:CGC) (TSE:WEED) advanced 5.8% to US$46.41 in New York trading after Wells Fargo analyst Bonnie Herzog reportedly said the decision by Constellation Brands Inc (NYSE:STZ) to invest in the cannabis company was the “right one.”
Shares of Canopy Growth climbed 5.1% to C$61.29 in Toronto. The stock of Constellation Brands was up 1.8% to US$175.16 in New York.
Shares of 1933 Industries Inc climbed 8.5% to US$0.37 on the OTC Markets after announcing that its expanding Infused MFG subsidiary is now distributing hemp-based, cannabidiol-infused health-and-wellness products across 46 US states.
Infused MFG’s Canna Hemp, Canna Hemp X and Canna Hemp Paws brands are available in more than 250 retail stores in California, Nevada, Arizona, Colorado and other US states, according to 1933.
The stock advanced 5.5% to C$0.48 in Canadian trading.
Canntab Therapeutics Ltd (OTCMKTS:TLFTF) (CSE:PILL) rose 6.3% to US$0.68 on the OTC Markets a day after the announcement of a supply agreement with FSD Pharma Inc (OTCMKTS:FSDDF) (CSE:HUGE) and World Class Extractions to purchase hemp flower from Thomas Elcome.
Under the agreement, the three companies will buy about 1,000 kilograms of Thomas Elcome’s 2018 hemp crop at a purchase price of $100 per kilogram per 1% of cannabidiol extracted from the flower.
Shares of Canntab were up 1.2% to C$0.88 in Canadian trading. FSD Pharma slipped 2.9% to US$0.21 on the OTC Markets and was down 3.5% to C$0.28 in Canada.
Cannabis stocks on the decline included iAnthus Capital Holdings Inc (OTCMKTS:ITHUF) (CSE:IAN), which dropped 3.2% to US$5.42 on the OTC Markets and was down 3.2% to C$7.16 in Canadian trading.
Separately, the New York-based company announced Tuesday that Pat Tiernan had been promoted to executive vice president of operations responsible for the US.
The company added that Carlos Perea will make the transition from his current position as chief operating officer to lead the development of a group focused on strategic investments in new technologies.
–This story was updated to add the Youngevity-Khrysos deal–
Contact Dennis Fitzgerald at [email protected]