Marijuana stocks floundered Tuesday as the budding cannabis industry cooled off after a couple of businesses came under fire in recent weeks.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, fell 1.31% to 136.55 points. Elsewhere, the ETFMG Alternative Harvest ETF tumbled nearly 0.72% to US$19.78, while the OTCQX Cannabis Index fell 1.5% to 492.78 points.
GrowGeneration Corp (OTCMKTS:GRWG), a rapidly growing hydroponic supply retailer, edged up after it announced that it will report third quarter earnings on November 11. The Colorado-based company, which has stores across the US in mature cannabis markets like California, swung to a surprise profit in the second quarter of this year, bringing in revenue of $19.5 million.
Shares in GrowGeneration went up 0.5% Tuesday to US$3.97.
Canopy Growth Corporation (TSE:WEED) (NYSE:CGC) stock climbed after its Spectrum Therapeutics division obtained licenses from the Medicines and Healthcare Products Regulatory Agency (MHRA) and Home Office to store and distribute cannabis-based medicinal products in the UK.
Its stock rose 3.2% to C$27.42 on Bay Street and 3% to US$20.96 in New York.
CannaRoyalty Corp, which does business as Origin House (CSE:OH) (OTCMKTS:ORHOF), slipped for the second day in a row after dropping 8.6% Monday on OTC Markets.
The cannabis brands and distribution company fell another 6.5% to trade at C$5.80 on the CSE and lost 6.3% to US$4.45 on OTC Markets.
Others left behind by the market were pharmaceutical company Isodiol International Inc (CSE:ISOL) (OTCMKTS:ISOLF), which slid 2.1% to C$0.23 in Toronto and 10.4% to US$0.17 in New York, and holding company Generation Alpha Inc (OTCMKTS:GNAL), which declined by a third to US$0.02.
Contact Uttara Choudhury at [email protected]
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Andrew Kessel contributed to this report