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Buds & Duds: Cannabis stocks get back to growing; CannTrust begins to earn back investor confidence

In a bid to earn back its Health Canada licenses, CannTrust announced that it would destroy C$77 million worth of unauthorized inventory and plants

Cannabis stocks gaining graphic
The North American Marijuana Index showed gains across the sector

Cannabis stocks showed signs of life Tuesday, turning around losses suffered late last week. 

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, moved 6.5% higher to 137.4 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF rose 5.9% to C$10.97, while the OTCQX Cannabis Index grew 3% to 501.6 points.

Buds

In a bid to earn back its Health Canada licenses, CannTrust Holdings Inc (TSE:TRST) (NYSE:CTST) announced Monday that it would destroy C$77 million worth of unauthorized inventory and plants.

The company said in a statement that it plans to submit a plan of remediation to Health Canada by October 21.

Investors took the news as a step in the right direction, rocketing shares 40% higher to C$1.68 on Bay Street and 22% to US$1.27 on Wall Street.

Aphria Inc (TSE:APHA) (NYSE:APHA) shares soared after the company reported fiscal first quarter income beat Street expectations. The company earned C$16.4 million on revenue of C$126.1 million. According to analysts polled by Bloomberg, the Street expected an adjusted loss of C$7.7 million. 

Its stock jumped nearly 14% to C$7.07 in Toronto and 22% to US$5.35 in New York. 

1993 Industries Inc (CSE:TGIF) (OTCMKTS:TGIFF) saw its stock rise 4.4% to C$0.24 on the CSE and 9% to US$0.18 on OTC Markets. The company put out a corporate update Tuesday morning, highlighting for investors its expansion in Nevada and California and its anticipated record quarterly revenue.

The Green Organic Dutchman Holdings (TSE:TGOD) (OTCMKTS:TGOF) was another gainer, as shares increased 8.4% to C$1.29 on the TSE and 11% to US$1 on OTC Markets.

Duds

Only a handful of companies missed the rising cannabis tide, but among them was Emerald Health Therapeutics Inc (CVE:EMH) (OTCMKTS:EMHTF), which dropped 11% to C$0.89 on the TSX Venture Exchange and 7.7% to US$0.68 on OTC Markets.

Meanwhile, Isodiol International Inc (CSE:ISOL) (OTCMKTS:ISOLF) lost 9.1% to US$0.19, and Tidal Royalty Corp (CSE:RLTY.U) (OTCMKTS:TDRYF) fell 9.1% to US$0.10.

Contact Andrew Kessel at [email protected] 

Follow him on Twitter @andrew_kessel

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