Cannabis stocks rolled up Wednesday, on the back of a tough few months for cannabis investors.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, was up 0.6% at 190 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF inched up 0.1% at C$15.01, while the OTCQX Cannabis Index was up 1.5% at 694.4 points.
TruTrace Technologies Inc (CSE:TTT) (OTCMKTS:TTTSF) shares were gaining Wednesday after announcing its medical cannabis verification pilot program with Shoppers Drug Market has added industry player, Tilray Inc (NASDAQ:TLRY), to its line-up.
TrueTrace shares soared 8.2% at US$0.20 in New York, up 4.2% at C$0.25 in Toronto. Tilray shares eased 1.4% at US$30.69 on Wednesday.
Subsidiary Tilray Canada, joins a host of companies lined up to use TruTrace’s StrainSecure technology to track strains of medical cannabis and verify their authenticity.
"Tilray has maintained a keen focus on the importance of quality medical cannabis, from their clinical research initiatives to their strategic partnerships in the global medical market," said TruTrace CEO Robert Galarza in a statement. "We are very excited to begin working with them in the pilot program, and we believe our blockchain-enabled verification and traceability of their products will only further bolster their global brand."
Other stocks gaining Wednesday included Valens GroWorks Corp (CVE:VGW) (OTCMKTS:VGWCF), which is expecting record revenue numbers for its recently wrapped up fiscal third quarter, according to guidance released Tuesday. The cannabis extraction focused firm said it expects revenue for the three months ended August 31 to be between $16 million and $17 million, nearly double the $8.8 million it brought in the quarter before.
CEO Tyler Robson said the firm's 425,000 kilograms of extraction capacity enabled it to process record volumes in the third quarter of 2019. Valens is the largest processor of cannabis and hemp biomass in Canada.
"We continue to execute on delivering the highest quality extraction services to our customers as the demand for distillates ramps up in anticipation of edibles and concentrates hitting the shelves later this year," Robson said in a statement.
"Looking to the future, and to position us to keep pace with the growth of the industry, we are also expanding our 425,000 kilogram capacity to over 1,000,000 kilograms in the first half of 2020," he added.
Other stocks gaining Wednesday included Aurora Cannabis Inc (TSE:ACB) (NYSE:ACB), which is expected to announce its 4Q earnings results after market close today. Analysts are expecting the company to report revenue of around C$108 million, up from C$65.2 million in the third quarter.
A number of cannabis stocks were in the red on Wednesday.
Cronos Group Inc (TSE:CRON) (NASDAQ:CRON) shares lagged, down 2% at C$15.14 in Toronto, off 2% at US$11.49 in New York. The stock has dropped more than 10% in September, despite reporting better-than-expected quarterly earnings in August.
Others have pointed to the firm's notable investments toward cannabis-based vaporizers, in light of the vaping crisis which is capturing public attention. Cronos stock was also downgraded by Cowen & Co, which slashed its 12-month price target to US$17.
Contact Katie Lewis at [email protected]