Cannabis stocks continued to slide on Thursday on the back of broad-based losses across North American markets and a string of lacklustre earnings results.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, dropped 4.6% at 193.29 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF sank 5.7% to C$15.50, while the OTCQX Cannabis Index dropped 4.7% to 657.7 points.
Despite the lagging markets overall, a number of cannabis stocks outperformed Thursday.
Empower Clinics Inc (CSE:CBDT) (OTCMKTS:EPWCF) jumped after it announced that it posted record revenue in its second quarter, driven by contributions from its recent acquisition of the Sun Valley Health Clinic US network and a boost in patient registrations.
For the three months ended June, the company saw its clinic revenue shoot up by 89% to $591,024, compared to $312,485 in revenue in the same period a year earlier.
Empower was up 11.1% at C$0.10 in Toronto on Thursday.
READ: Empower Clinics sees 2Q revenue soar on the back of its Sun Valley Health Clinic network acquisition
Shares of BevCanna Enterprises Inc (CSE:BEV) (OTCMKTS:BVNNF) were on the rise after the cannabis-infused beverage producer announced promising results Wednesday from independent tests of its powdered cannabis ingredient Deeper Green.
BevCanna was up 5.5% at US$0.55 in New York and up 1.4% at C$0.70 in Toronto.
The tests found that Deeper Green, which BevCanna uses to infuse beverages with cannabinoids, meets the Cannabis Compliance Regulations in California. The water-soluble powder was shown to deliver target concentrations of THC, which provides consumers with confidence that they’re getting the correct dose.
READ: BevCanna's powdered cannabis expected to pass California regulations following strong independent tests
Lexaria Bioscience Corp (CSE:LXX) (OTCMKTS:LXRP) shares were up Thursday after the biotechnology company behind the drug delivery system DehydraTECH announced Thursday that its subsidiary Poviva Corp had been awarded four patents.
Lexaria shares were up 2.9% at C$1.08 in Canadian trading, up 2.5% at US$0.82 in New York.
The patents, two in the US and two in Australia, bring Lexaria’s total to 15 granted patents, along with 60 pending applications around the world.
The duds led the way with the majority of cannabis stocks falling.
Canopy Growth Inc (TSE:WEED) (NYSE:CGC) shares sank Thursday, after the world’s largest cannabis company reported an eyebrow-raising C$1.3 billion loss in its first-quarter results.
The Smiths Falls, Ontario-based Canopy posted a loss of C$1.28 billion, or C$3.70 a share, compared with losses of C$91 million, or C$0.40 cents a share in the same period a year ago. According to the firm, the loss was primarily related to the firm extinguishing warrants related to Constellation’s $4 billion investment.
Canopy Growth reported $90.5 million in net revenue for its first fiscal quarter of 2020, versus $94.1 million in the previous quarter.
The firm made headlines this summer after it fired its co-CEO Bruce Linton after reports that one of its chief investors, Constellation Brands, wanted the company to achieve profitability quicker.
Tilray Inc (NASDAQ:TLRY) shares sank 10.5% at US$41.18 in New York after reporting wider-than-expected losses in its fiscal second quarter, despite seeing a bump in sales, on the back of acquisitions that helped results.
The cannabis cultivation company reported revenue of US$45.9 million, as compared to US$9.7 million in the year-ago period, and beating the US$40.35 million expected by analysts. The firm pointed to its acquisition of Manitoba Harvest, recreational legalization in Canada, and growth in Europe’s medical marijuana market as reasons for the rise.
Net loss for the quarter was US$35.1 million or $0.36 per share compared to a loss of US$12.8 million or $0.17 per share in the same period a year ago. Tilray said the widening loss was due to an increase in operating expenses, interest expenses, acquisitions and the expansion of its international operations.
-- Harriet Mclelland contributed to this report --
Contact Katie Lewis at [email protected]