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Buds & Duds: Cannabis stocks plummet, but Canntab bucks the trend as shares rise

Also on the move were Cannabis One, Golden Leaf, Isodiol, MedMen, Tilray and Green Growth Brands
Cannabis flower
Canntab shares lit up after it announced a deal for capsule manufacturing with Heritage Cannabis

Cannabis stocks saw sharp drops on Friday, with shares broadly down across US and Canadian markets.

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, was down 4.9% to 250.7 points by Friday's close. The Horizons Marijuana Life Sciences Index ETF sank 3.6% to C$18.62.

Buds

Despite the broad drops, a number of stocks lit up on Wednesday.

Canntab Therapeutics Ltd (CSE:PILL.CN) (OTCMKTS:CTABF) shares jumped Friday, a day after the firm announced it had inked a deal for capsule manufacturing with Heritage Cannabis Holdings Corp (CSE:CANN) (OTCQX: HERTF). 

Shares of Canntab jumped up 2.8% at C$0.73 in Toronto.

"After recently announcing the receipt of our cultivation licence for industrial hemp from Health Canada, we are immediately entering into important agreements to generate both short term and sustained revenue for the company," said Canntab's co-founder and CEO Jeff Renwick. "Our ability to encapsulate allows us to generate revenue without losing our long term focus on becoming the leading supplier of hard pill oral dose cannabinoid and terpene blends in the world."

Canntab is also known for its tablet technology, which includes an extended-release, instant-release, flash melt tablet and more. 

READ: Heritage Cannabis inks pact with Canntab Therapeutics for capsule manufacturing

Other gainers Wednesday included Cannabis One Holdings Inc (CSE:CBIS) (OTCMKTS:CAAOF), which announced earlier this week that a pair of vice presidents stepped into interim C-suite positions, effective immediately.

Shares were up 1.5% at C$1.38, up 4.9% at US$1.05 in New York.

Earlier this month, the firm announced it is expanding its multi-state footprint for both CBD and THC infused products with the leasing of two manufacturing and processing facilities located near Portland, Oregon.

Other gainers Friday included Golden Leaf Holdings Ltd (CSE:GLH) (OTCMKTS:GLDFF) which soared 5% at C$0.11 in Toronto.

The firm released its first quarter and annual 2018 financial results on Friday. For the year, revenue was up 43% US$16.3 million compared to US$11.5 million generated in 2017. It's first quarter revenue also saw strong gains. 

“We saw year-over-year revenue growth of 34% for the first quarter of 2019. We are pleased with the successful launch of two new brands in our Oregon and Nevada markets, Elysium Fields and Jackpot, showing strong customer support and trust," said CEO Karyn Barsa.

The company has cultivation, production and retail operations in Canada as well as in Oregon and Nevada.

Duds

There were a host of laggards on Friday, as the majority of cannabis stocks struggled.

MedMen Enterprises Inc (CSE:MMEN) (OTCQX:MMNFF) shares continued to drop Friday after the firm released its third-quarter earnings a day earlier, which didn’t meet analyst estimates. In particular, MedMen’s quarterly loss was higher than estimates.

Shares slipped 2% at US$2.98.

LA-based MedMen reported revenue of US$36.6 million, versus analyst expectations of US$49.2 million. It reported a net loss of US$63.1 million, reflecting a share loss of US$0.20. In the year-ago quarter, the loss stood at US$18.4 million.

READ: Green Growth Brands posts earnings highlighting the new company's rapid expansion throughout US

Other laggards Friday included Green Growth Brands (CSE:GGB) (OTCMKTS:GGBXF), which released its third-quarter earnings results. 

Shares were down 1.3% at C$3.70 in Canadian trading. 

The company posted a net loss for the period of US$15.1 million or $0.07 per share. For the period ending March 31, 2019, Green Growth Brands posted total revenues of US$5.6 million, largely driven by its Nevada operations, which contributed the bulk of sales.

It ended the quarter with US$5.4 million cash on hand. 

READ: Green Growth Brands posts earnings highlighting the new company's rapid expansion throughout US

Isodiol International (CSE:ISOL) (OTCMKTS:ISOLF) shares also dropped, down 8.9% at US$0.92 in New York and down 8.9% at C$1.23 by Friday's close on no news. The firm produces hemp derivatives in bulk quantities, white label formulas, and a branded line of finished goods.

Tilray Inc (NASDAQ:TLRY) shares also dropped on Friday down 2.8% at US$38.01 in New York.

Contact Katie Lewis at [email protected]

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