Cannabis stocks saw a healthy mix of red and green on Wednesday across North American markets.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, dropped 0.5% to 238.2 points on Wednesday. The Horizons Marijuana Life Sciences Index ETF was down 0.4% to C$18.15. The OTCQX Cannabis Index slipped 1.2% at 732.7 points.
1933 Industries Inc (CSE:TGIF) (OTCQX:TGIFF) shares were on the rise Wednesday after the firm checked off a major milestone: completing its final phase of construction of its cannabis cultivation expansion in Nevada and receiving a permanent occupancy permit for its Las Vegas facility.
The move allows 1933 Industries subsidiary Alternative Medicine Association to move into the facility and begin cultivation.
Shares were up 2.4% to C$0.43 in Canadian trading.
“The completion of our new cultivation facility marks an incredible milestone for our Alternative Medicine Association subsidiary,” said CEO Chris Rebentisch. “We are extremely pleased to be able to move into our new facility and begin operations. This is a 5x increase in flower cultivation to fuel the growth of our proprietary AMA branded products and deliver on our white label contracts.”
Last week, the firm announced it would be selling its CBD products in 160 Abercrombie & Fitch Co. (NYSE:ANF) stores as it continues its expansion. The firm had one shop eight months ago and is now on track to have around 240 in the next four months.
True Leaf shares were also on the rise Wednesday, up 1.5% at C$0.34 in Toronto, up 3.6% at US$0.27 in New York.
Laggards on Wednesday included Canopy Growth Corporation (TSE:WEED) (NYSE:CGC) which unveiled bombshell news that co-CEO Bruce Linton has stepped down from the world's largest cannabis company, as well as its board.
Shares slipped 1.2% to US$39.60 in New York but rebounded by Wednesday afternoon up 2.4% at US$41.06.
In an interview on CNBC on Wednesday, Linton who is the co-CEO of Canopy Growth, noted he was fired from the Canadian pot company he founded in 2013.
Linton’s immediate departure comes after the Smith Falls, Ontario-based cannabis grower posted a wider-than-expected fiscal fourth-quarter loss last month, which unnerved both investors and the industry.
“Creating Canopy Growth began with an abandoned chocolate factory and a vision," said Linton in a statement from Canopy Wednesday. "The board decided today, and I agreed, my turn is over.“
Contact Katie Lewis at [email protected]