Cannabis stocks took a tumble on Tuesday, with broad losses sweeping across the US and Canada.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, dropped 1% to 303.21. The Horizons Marijuana Life Sciences Index ETF was also down 0.37% at C$21.63.
Bucking the downward trend was Empower Clinics Inc (OTCMKTS:EPWCF) (CSE:EPW). The medical cannabis clinic operator revealed Tuesday it has closed more than $2.9 million in debenture and equity financings that will be put toward strategic acquisitions and working capital.
In other news, as part of the offerings, AgraFlora Organics, a cannabis firm with a large-scale greenhouse in British Columbia, has invested $1 million into Empower.
The stock of Empower popped by 39.4% to hit US$0.13 in afternoon trade in New York.
Moving higher too was Tilray (NASDAQ:TLRY) which is throwing its weight behind two new clinical trials set to lend credibility to medical cannabis. The first is a pilot study conducted by Murdoch Children’s Research Institute in Melbourne, Australia to evaluate cannabis extract as a way to reduce behavioral problems in children with intellectual disabilities. The second is a study with McGill University to study the impact of medical cannabis on the immune system in patients with HIV.
Shares of Tilray were up 2% to hit $64.26 in afternoon trade in New York.
Also pushing higher was Charlotte’s Web Holdings Inc (CSE:CWEB) (OTCQB:CWBHF), the maker of hemp-derived CBD extract products. Investors still seem to be riding high on last week’s news that the Boulder, Colorado company’s revenue in its latest quarter jumped to $21.5 million, up from $12.6 million for the same period last year.
Shares of Charlotte’s Web climbed 6% to US$22.43 in New York.
Among the laggards was Youngevity International (NASDAQ:YGYI), which took a hit despite the announcement of its plans to strike up a one-year supply and processing agreement to produce 99% pure CBD isolate. Shipping of the CBD is set to kick off this month and continue through March of 2020.
Youngevity fell 3.15% to $5.84 in afternoon trade in New York.
Another slowpoke was Ianthus Capital (OTCQX:ITHUF), which dipped after posting a net loss of $15.9 million in its latest quarter on revenue of $2.2 million. The US cannabis company generates revenue in nine states and is expected to kick off sales of its products in California within two months.
Shares of Ianthus slipped 4% to $5.39 in afternoon trade.
Contact Ellen Kelleher at [email protected]