Cannabis stocks showed signs of life on Tuesday, growing across North American markets after a slow start to the week yesterday.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada gained 0.4% at 130 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF rose 1.8% to C$10.64, while the OTCQX Cannabis Index was up 1.1% to 443 points.
With earnings season upon the cannabis industry in November, the month will provide a lot more color of where the overall cannabis industry stands, according to a new Roth note.
“We believe will begin to see investment differentiation of cannabis companies from those in strong capital positions and executing profitability to those mired in the capital crunch and many quarters away to reaching positive net income levels,” wrote Roth’s Scott Fortune.
“We expect to hear the pathway to profitability in most earnings discussions, as investor demand for cannabis stocks has waned as capital and interest has dried up.”
The Vancouver-based company tapped Gregg Smith, founder of Evolution VC Partners, as a senior advisor. Evolution VC is a New York venture investment firm, which boasts stakes in more than 90 companies, including JUUL Labs, Pax Labs, Beyond Meat, Sweetgreen and Relativity Space.
Shares of Lexaria gained 6% in Canada at C$0.73 and nudged 0.6% higher on the OTC Markets at US$0.54.
WeedMD Inc (CVE:WMD) (OTCMKTS:WDDMF) was also up after it told investors it completed harvesting its 27-acre outdoor cannabis crop at its sprawling facility in Strathroy, Ontario.
The Toronto-based cannabis company owns and operates a 158-acre state-of-the-art greenhouse, outdoor and processing facility located in Strathroy, Ontario.
Its shares rose 2.7% to C$1.15 in Canada and 1.2% in the US at US$0.87 by midday Tuesday.
MediPharm Labs Corp (TSE:LABS) (OTCMKTS:MEDIF) saw big gains on the announcement that it had applied to list on the NASDAQ. Shares in Toronto rocketed 10.4% higher to C$5 and 10% on the OTC Markets at US$3.79.
A handful of cannabis stocks saw slight declines on Tuesday.
Khiron Life Sciences Corp (CVE:KHRN) lost 3.3% in Toronto and 4.1% in the US to trade at C$0.89 and US$0.68 respectively.
Also seeing red was Harvest Health & Recreation Inc (CSE:HARV) (OTCMKTS:HRVSF), down 1.8% in Canada and 1.9% on the OTC Markets at C$3.32 and US$2.51 respectively.