Cannabis stocks had a lacklustre start to Monday, with stocks fairly flat across North American markets.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, was flat at 197.26 points. The Horizons Marijuana Life Sciences Index ETF was down 1% to C$15.45. The OTCQX Cannabis Index was up 0.2% at 676.9 points.
Valens GroWorks Corp (CVE:VGW) (OTCMKTS:VGWCF) stock was on the rise after its shares started trading on the OTCQX Best Market on Monday having graduated from the OTCQB Market. The stock will begin trading under the ticker symbol VGWCF.
Valens shares were up 2.2% at C$3.71 in Toronto, up 1.1% at US$2.79 in New York.
"We are excited to begin trading on the OTCQX Best Market. Access to trading on OTCQX, combined with the current work underway to finalize the company's DTC eligibility, will increase Valens' presence with United States investors, providing increased liquidity to the company's growing shareholder base," says Tyler Robson, Valens CEO.
The Flowr Corporation (CVE:FLWR) (OTCMKTS:FLWPF) shares were also gaining Monday. On Thursday, the firm released news that it continued to ramp up production in 2Q, while also advancing development at its flagship Kelowna Campus.
Shares were up 1.7% at 2.95 in Toronto.
For the second quarter ended June 30 2019, the company posted gross revenue of $2.8 million and net revenue of $2.2 million, which excludes $358,000 in design and construction fees from Hawthorne Canada Limited linked to the construction of the R&D facility on the company’s Kelowna Campus.
“We delivered an increase in production as we continue to optimize our operational grow rooms and were able to translate the production increase into a similar percentage increase in sales volumes," said CEO Vinay Tolia in a statement. "Revenues and average selling prices in the quarter were impacted by our product mix, predominantly as we sold fewer pre-rolls than in the prior quarter."
Shares of CBD manufacturer Isodiol International Inc (CSE:ISOL) (OTCQB:ISOLF) were soaring Monday, up 36.5% to US$0.40 in US trading after it released its 4Q and fiscal year results, ended March 31, 2019.
For fiscal 2019, the firm reported revenue of $22.25 million, a boost of 16.3% year over year. Its 4Q revenue came in at $9.1 million.
“We have just realized our most profitable quarter to date and have reduced our operating expenses considerably, which will be seen in the first quarter of FY2020,” said CEO Marcos Agramont. “The majority of losses experienced in FY 2019 are a by-product of our shift in our focus towards higher-margin consumer products vs raw ingredient supply, prevention of massive shareholder dilution and protecting our future cash flows through divestitures.” Marcos went on, “Over the last several months we have sharpened our focus significantly, cut costs, curbed shareholder dilution and we believe the company is in a strong position heading into FY2020 and beyond."
CannTrust Holdings Inc (TSE:TRST) (NYSE:CTST) shares continued to lag Monday, after the firm released news that the Ontario Cannabis Store returned all of the company's products, as it deemed to be 'non-comforming product.' The company says the total value of the products is about C$2.9 million.
Shares dropped 2.5% to C$2.72 in Toronto, and were down 2.4% at US$2.05 in New York.
"The (store) operates independently of Health Canada. Health Canada has not ordered a recall in respect of any of the company's products," noted CannTrust in a statement.
CannTrust has been embroiled in a scandal since early July after Health Canada found it was growing cannabis in unlicensed rooms at its Pelham, Ontario facility and later raised issues about its manufacturing facility in Vaughan, Ontario.
Also lagging Monday was Canopy Growth Corporation (TSE:WEED) (NYSE:CGC), a week after the firm announced its 1Q earnings, reporting a net loss of nearly $1.3 billion as higher expenses offset revenue growth in the first quarter.
Shares were down 3.9% at US$27.02 in New York, down 3.6% at C$35.91 in Toronto.
The stock has dropped around 25% since releasing its earnings that missed analysts estimates by a wide margin.
Canopy reported Wednesday it lost $1.28 billion for the quarter ended June 30, its fiscal first quarter of 2020, compared with a loss of $91 million in the first quarter of fiscal 2019.
Contact Katie Lewis at [email protected]
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