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Buds & Duds: Cannabis stocks retreat again, but Ventura Cannabis and Wellness shares rise as company targets Utah

It was bad day for HEXO as the cannabis company said it won't meet fourth quarter revenue targets

Ventura Cannabis and Wellness -
Also on the move were Xtraction Services, MediPharm Labs and Canopy Growth

It was another day, another decline for cannabis stocks across North American markets on Thursday.

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada lost 3.8% higher to 133.9 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF fell 4.6% to C$10.92, while the OTCQX Cannabis Index slipped 3.1% to 496.7 points.

Buds

A few standouts greeted investors as trading progressed on Thursday.

Ventura Cannabis and Wellness Corp (CSE:VCAN) shares rose after it announced plans to pursue one of 14 medical cannabis pharmacy licenses on offer in Utah.

The company also told investors that it is accelerating the disposition of its rehab assets, which is expected to bring in around US$3.5 million in cash. According to Ventura, the result will be higher than anticipated increases in cash over the next two quarters.

Shares of Ventura Cannabis jumped 10.7% in Canada at C$0.31.

Xtraction Services Inc (CSE:XS) was also in positive territory, up 7.3% in Canada at C$0.22. Last week the extraction company announced it had amended a lease agreement that allows Xtraction to invoice ahead of schedule.

Citation Growth Corp (CSE:CGRO) also grew 11.1% to C$0.35 in spite of a lack of new news.

Duds

HEXO Corp (TSE:HEXO) (NYSE:HEXO) investors were feeling the pain on Thursday after the company warned shareholders that its net revenue will come in below expectations by nearly 40%.

The company said net revenue for the fourth quarter, which ended July 31, is expected to be about $14.5 million to $16.5 million, compared with the roughly $26 million it had estimated previously.

Shares of HEXO sank 24% in Canada and New York at C$3.71 and US$2.78 respectively.

MediPharm Labs Corp (TSE:LABS) also dropped 7.1% after it closed a new C$38.7 million upsized credit facility with a Canadian Schedule 1 bank.

Canopy Growth Corporation (TSE:WEED) (NYSE:CGC) also fell 9.5% in Toronto and 6.8% in New York following the announcement that it had appointed a new board chair, David Klein, who is currently the executive vice president and CFO of major Canopy investor Constellation Brands Inc.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

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