Cannabis stocks continued to drop Thursday after a tough week so far with broad losses across North American markets.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, was down 2% to 239.7 points on Thursday. The Horizons Marijuana Life Sciences Index ETF was down 1.7% to C$18.77. The OTCQX Cannabis Index was down 2.3% at 735.1 points.
HEXO Corporation (NYSEAMERICAN:HEXO) (TSE:HEXO) announced fiscal third-quarter results Wednesday that showed surging revenue thanks to the ongoing rollout of a legalized cannabis market in Canada. The cannabis producer saw sales jump more than tenfold to C$13 million but fell short of Street estimates by C$1 million.
That sent the shares down 8.4% at C$7.81 in Toronto, and 9.1% lower to US$5.86 in New York.
“The past five years have seen the cannabis industry landscape, and our company, evolve significantly,” said HEXO CEO and co-founder Sebastien St-Louis. “This evolution continues at a staggering pace, as HEXO ramps up production effort and significantly increases its inventory, further contributing to our capacity to meet the demand and to reach our sales and revenue targets.”
The firm did not release any news other than a release about the launch of its new website.
“Over the past year, MariMed has expanded beyond its advisory service origins with new sales and production facilities, product expansion, strategic acquisitions, key executive hires, and the launch of a wholly-owned subsidiary, MariMed Hemp, focused on hemp-based CBD markets," said Penelope Finnie, senior VP of marketing and branding. "The new website and URL reflects not only MariMed’s recent accomplishments and growth, but also our long-term goals for the company.”
Terra Tech Corp (OTCMKTS:TRTC) shares also lagged, down 4.3% at US$0.67 after the firm released news Wednesday that it was acquiring the remainder of the Blüm Reno dispensary and the building where the facility is located from Forever Green NV and Forever Young Investments, in Nevada.
Topping the list of gainers on Thursday included Namaste Technologies Inc (CSE:N) (OTCMKTS: NXTTF), which saw shares up 7.6% at C$0.71 in Canadian trading. The firm did not release any news, but the firm announced last week that the management cease trade order imposed by the British Columbia securities commission (BCSC) and the Ontario securities commission (OSC) in April has been lifted.
With the lifting of the cease trade order, directors, officers and other insiders of Namaste are allowed to trade the company's common shares.
Other gainers Thursday included High Hampton Holdings (CSE:HC) (OTCMKTS:HHPHF), which announced earlier this week the firm announced is changing its name to Mojave Jane Brands Inc.
Shares were up 3.1% at C$0.34 in Toronto.
The Toronto-based company has a vertically integrated presence in California, including the Caligold brand of cannabis-infused chocolate. Pending approval, the company will also change its ticker on the Canadian Securities Exchange to "JANE."
"As we begin to deliver on our consumer and brand first strategy, it's appropriate that we re-launch and re-name this business to reflect that strategy,” said CEO Gary Latham. “More than a name change; this is a well-orchestrated plan that began and continues with the acquisition of leading California companies in the manufacturing, distribution, and delivery businesses."
Contact Katie Lewis at [email protected]