Cannabis stocks perked up on Monday after a tough week last week across North American markets.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, was up 1% to 233.9 points on Monday. The Horizons Marijuana Life Sciences Index ETF was up 1% to C$18.58. The OTCQX Cannabis Index was up 3.4% at 712.8 points.
Cannabis One Holdings Inc. (CSE:CBIS) (OTCMKTS:CAAOF) shares were on the rise Monday after it unveiled a new concept on for its flagship dispensary, The Joint, in Denver. Effective July 1, the new location will feature new décor with an “upscale vibe” that will serve as a platform for the brand’s new dispensaries, according to Cannabis One. The company plans to expand The Joint retail footprint to 200 locations throughout the US over the next three years.
Shares were up 12.7% at C$1.24 in Toronto.
"The introduction of our new retail concept location signals Cannabis One's tireless pursuit of excellence throughout all facets of operations by improving upon what was already an industry-leading concept,” said Jeffery Mascio, Cannabis One’s CEO.
READ: Cannabis One to launch rebranded retail location in Denver, announces plans to expand The Joint throughout US
Other gainers earlier on Monday included WeedMD Inc (CVE:WMD) (OTCMKTS:WDDMF) which is one of the first licensed producers in Canada to begin outdoor grow operations with its first harvest from its Strathroy, Ontario facility expected in October this year.
Shares were up 1% at C$1.15 in New York.
Last month, the cannabis group said it had received the coveted outdoor pot cultivation license from Health Canada. Today, the company said it had completed the outdoor planting of more than 20,000 fully-rooted plants.
"With our outdoor grow now fully operational, WeedMD has one of the most compelling and low-cost cultivation platforms in Canada," said the CEO Keith Merker.
"Planting a variety of proprietary cannabis strains outdoors in June positions the company to meet and exceed our production forecasts. WeedMD recently launched its adult-use brand Color Cannabis, and with the introduction of new cannabis extract products in late 2019, we expect to have one of the largest, low-cost supplies of biomass to position ourselves vertically for the emerging extract market."
Other gainers Monday included CannaRoyalty Corp, which is doing business as Origin House (CSE:OH) (OTCMKTS:ORHOF), which announced it has receieved a final order from the Ontario Superior Court of Justice approving its deal with US cannabis operator Cresco Labs Inc (OTCMKTS:CRLBF) (CSE:CL).
Shares of Origin House were up 8.6% at C$8.65 in Toronto on Monday. Shares of Cresco Labs were up 15.5% at US$10.48 in New York and up 15.8% at C$14.05 in Toronto.
"Receipt of the final court order is a significant step towards completing the arrangement with Cresco Labs. Both Origin House and Cresco Labs are committed to closing the transaction as soon as is practicable following the expiration of the applicable antitrust waiting period, and look forward to a successful outcome for shareholders of both companies," said Marc Lustig, CEO of Origin House.
Shares of HEXO Corp (TSE:HEXO) (NYSEAMERICAN:HEXO) also slipped 1.7% at C$7.39 in Canadian trading.
Last week, the firm released its third-quarter earnings results announced fiscal third-quarter results 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.
“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.”
Contact Katie Lewis at [email protected]