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Buds & Duds: Cannabis stocks lackluster to end week but Biome Grow, HEXO in the green

Canadian pot producer Biome Grow recently received approval to sell cannabis in the province of Saskatchewan

cannabis canada flag
Also on the move was Tilray, Pure Global Cannabis and Origin House

Cannabis stocks trended lower on Friday across North American markets as the sector appeared to lose some luster to close the week.

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, lost 2.1% to hit 168.6 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF fell slightly by 0.64% to C$13.92, while the OTCQX Cannabis Index sank 2.3% to 626.9 points.

Buds

It was a slow news day to round out the week, but some companies managed to see some life in their share prices.

HEXO Corp (TSE:HEXO) (NYSE:HEXO) saw its shares pitch 5.2% higher in Toronto at C$5.51 and 5.6% higher in New York at US$4.16 after research firm MKM Partners initiated coverage on the stock with a ‘Buy’ rating and a price target of US$14.

The consumer packaged goods cannabis company creates and distributes products for the Canadian cannabis market under the HEXO brand and serves the medical cannabis clients through the Hydropothecary label.

Biome Grow Inc (CSE:BIO) (OTCMKTS:BIOIF) saw its shares rise 4.4% on Friday to reach C$0.36. It has been a quiet September so far for the cannabis producer, which recently told shareholders that its third quarter was “shaping up well.”

The company recently received approval to sell cannabis in the province of Saskatchewan.

Also in the green was Pure Global Cannabis Inc (CVE:PURE) (OTCMKTS:PRCNF), which increased 26% in Toronto to C$0.12 and jumped 21% to US$0.91 on the OTC Markets. The company is gearing up to sell oils after receiving its license from Health Canada earlier in September.

Duds

Canadian pot producer Tilray Inc (NASDAQ:TLRY) sank 3.2% to US$29.65 on Friday morning before regaining some ground by midday.

The first company to IPO on a US exchange has seen its share price lose nearly 90% of its value since the heady days of September 2018, when it peaked around US$300.

The company is valued at over US$2.5 billion today.

Another pot company seeing red was CannaRoyalty Corp, doing business as Origin House (CSE:OH), which lost nearly 3% in Canada at C$7.16 after announcing Friday that it has received a further C$15 million advance of debt financing from Opaskwayak Cree Nation.

World Class Extractions Inc (CSE:PUMP) (OTCMKTS:WDEXF) also sank 9.5% on Friday in Canada on no new news. However, the stock was trading 16% higher on the OTC Markets at US$0.08.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

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