Cannabis stocks rolled up Thursday after challenging few weeks for investors.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, nudged up 0.3% at 176 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF was up 0.8% at C$14.04, while the OTCQX Cannabis Index gained 2.6% at 634 points.
WeedMD Inc (CVE:WMD) (OTCMKTS:WDDMF) shares rose on Thursday after the firm posted financial results Wednesday that showed a notable jump in revenue in the second quarter as successful harvests boosted cannabis supply and operational strength pushed progress forward.
Shares of WeedMD were up 3.1% at C$1.64, up 2.3% at US$1.22.
For the quarter ended June 2019, the Toronto-based company recorded record revenue of C$8 million, representing a quarter-over-quarter increase of 139% and a 282% increase from the same period last year.
"WeedMD continues to make solid progress and we're proud to post another record quarter that highlights the strength of our operations and the demand for our products," said CFO Nichola Thompson. "Our gross margins improved to 46% as we realized scale in our cultivation operations and continued optimizing our supply chain. With another 10 newly-licensed 10,000 sq. ft. cultivation rooms coming online alongside our 27-acre outdoor harvest, we expect to realize some of the best cultivation margins in the industry."
The firm recently completed the acquisition of the remaining 80.2% interest in Holigen Holdings through a share purchase agreement. The move will mean the addition of operations in Portugal and Australia to Flowr's existing Canadian platform.
The Toronto-based company builds and operates large-scale, GMP-designed facilities that utilize proprietary growing methods to produce high-quality cannabis for recreational and medicinal usage.
Also on the rise was High Tide Inc (CSE:HITI), up 6.1% at C$0.35.
The Alberta-based, retail-focused cannabis corporation currently has 17 branded Canna Cabana locations in Canada and is aiming to open six more by September.
A number of stocks dropped on Thursday.
The company reported revenue of US$39 million, up 13% from the previous quarter. TILT reported a net loss of US$48.9 million, compared to US$5.3 million in the prior-year period and US$77.9 million in the previous quarter.
"The second quarter was a highly productive period for Tilt. We continue to optimize our organization, including the dismissal and re-alignment of senior leadership, accelerate integration efforts, dramatically reduce overhead and instill an enhanced focus on profitable growth. Tilt is making progress on our key initiatives to drive operational stability and progress toward profitability, which is reflected in our strong second quarter revenue of US $39 million and the 49% narrowing of our adjusted EBITDA loss when compared to the first quarter," said CEO Mark Scatterday.
The Massachusetts-based technology and infrastructure company provides products and services in the cannabis industry, including offering same-day delivery for retailers, wholesalers and consumers in four states.
Contact Katie Lewis at [email protected]