Investors were bearish on the cannabis sector Tuesday following concerns that the resignation of US Food Drug Administration Commissioner Scott Gottlieb could delay CBD approvals. Seaport analyst Brett Hundley said in a note that Gottlieb’s departure adds “more uncertainties” to Medical Marijuana markets.
The Marijuana Index, which tracks leading cannabis stocks in North America, was down 4.6% to 286.5 at midday.
High Hampton Holdings Corp (CSE:HC) (OTCMKTS:HHPHF) started strong Wednesday as the company welcomed a new independent member to its board of directors, Dieter MacPherson, the current senior vice president of operations at Aurora Cannabis Inc (NYSE:ACB) (TSX:ACB). The Vancouver-based company hopes to expand within the California cannabis market, and investors are optimistic.
The stock added 6.3% to US$0.28 on the OTC Markets, while Canadian shares rose 11.6% to CA$0.39.
CB2 Insights (CSE:CBII) commenced trading today on the CSE. The data-driven medical cannabis company is based in Toronto and is working to mainstream cannabis into traditional health care, the company said in a statement. “At CB2, we have been focused on bringing a heightened level of objective, actionable insights to the medical cannabis space,” CB2's CEO Prad Sekar said.
The newly listed stock got off to a good start, trading at $0.36 per share.
Youngevity International Inc (NASDAQ:YGYI) is launching a CBD-infused coffee. The California-based company’s HempFX brand hopes to provide single servings via K-Cups. CBD coffee sales are expected to begin pre-sales in May, according to a statement from the company.
Investors haven’t bought in, sending the stock down 5.7% to $6.27.
Aurora earned an Outperform rating from Cowen & Co Analyst Vivien Azer Tuesday, according to a Barron’s report. But despite the analyst optimism as well as the drug company’s recent acquisition of Whistler Medical Marijuana, the share price has fallen 3% to $7.86 on the NYSE and 2.2% to $10.56 on the TSX. That’s below the $14 price target set by Azer.