Cannabis stocks had a tough start to the week, with more losses on Tuesday across North American markets.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, dropped 1.2% to 229.4 points on Tuesday. The Horizons Marijuana Life Sciences Index ETF was down 1.1% to C$17.7. The OTCQX Cannabis Index slipped 2% at 709.6 points.
There have been recent rumours the Canadian technology company would benefit from former Canopy Growth Corp (NYSE:CGC) (TSE:WEED) co-founder Bruce Linton, who seems to be spending more time working on Martello. Linton is currently the co-chairman of Kanata, Ontario-based Martello and was its CEO till 2017.
Investors connected the dots after Linton appeared on multiple TV interviews sporting a Martello T-shirt to talk about his departure from Canopy, the company he founded, which is now the largest marijuana company in the world.
In an interview with Proactive's Christine Corrado, Martello Technologies' CEO John Proctor said he welcomed Linton's continued involvement in Martello.
"The first thing he did was shine a spotlight on us," said Proctor. "We're this little tiny company hiding in the corner that's suddenly got the spotlight on us and people got to look at us, lift the lid and say 'hey, we think you're a bit undervalued'..."
"Since then, more people have looked at us and have recognized the potential. We've done all the right things. If you look at our two co-chairs, one is Bruce, the other is Terry Matthews, the guy who founded Mitel and Newbridge and Wales' first billionaire. There's a lot of horsepower on the board and on the executive team here as well."
Other gainers on Tuesday included Harvest Health & Recreation Inc (CSE:HARV) (OTCMKTS:HRVSF) which was up 4.3% at US$6.21 in New York, up 4.5% at C$8.15 in Canadian trading.
The firm announced Tuesday it had received the thumbs up from the Supreme Court of British Columbia for its acquisition of Verano Holdings LLC.
The Tempe-Arizona headquartered US multi-state cannabis operator said upon closing of the transaction, security holders of Harvest and Verano will become security holders in the combined company which will carry on the business of both.
CannTrust Holdings Inc (TSE:TRST) (OTCMKTS:CNTTF) shares continued to drop Tuesday, after the firm was dinged by Health Canada for growing cannabis in five grow rooms that didn't have a licence to operate at its Pelham, Ontario facility.
Shares dropped 6.8% at C$4.66 in Toronto, down 7% at US$3.56 in New York.
CannTrust said in a statement it has accepted Health Canada's non-compliance finding and has taken actions to ensure current and future compliance.
"Our team has focused on building a culture of transparency, trust and excellence in every aspect of our business, including our interactions with the regulator. We have made many changes to make this right with Health Canada. We made errors in judgement, but the lessons we have learned here will serve us well moving forward," said CEO Peter Aceto.
Other laggards Tuesday included Canopy Growth Corporation (TSE:WEED) (NYSE:CGC), close to a week after Bruce Linton, former co-CEO, told media he was fired from the Canadian cannabis company he founded in 2013.
Shares on Monday lagged, down 1% at C$51.17 in Toronto and down 1.3% at US$38.97 in New York.
The company did not release any news.
Contact Katie Lewis at [email protected]