Cannabis stocks stayed quiet on Wednesday after analysts called the bottom of the sector’s woes.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada fell 1.4% at 127.4 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF decreased by 0.5% to C$10.50, while the OTCQX Cannabis Index was up 0.4% to 446.5 points.
The grass is going to get greener for Canadian cannabis producers, say analysts at Cantor Fitzgerald. It’s only a matter of time.
Valuations are at two-year lows, the firm said in a research note on Monday, and positive catalysts outweigh negative ones over the next year.
On Wednesday Colombian cannabis producer PharmaCielo Ltd (CVE:PCLO) (OTCMKTS:PHCEF) saw its shares shoot higher after it issued an update saying it was terminating its proposed transaction with Australia’s Creso Pharma Limited after advisory firm BDO concluded that the acquisition was neither “fair nor reasonable” to Creso’s shareholders.
"While we are disappointed by this outcome, we have appreciated the interactions between our teams over the past several months and wish them much success in their future endeavours," said David Attard, CEO of PharmaCielo.
Investors sent the company’s shares up 14.5% to C$3.55 in Canada and 18.1% on OTC markets at US$2.74.
Meanwhile, Mojave Jane Brands Inc (CSE:JANE) (OTCMKTS:HHPHF) was also up 7.7% at C$0.07 in Canada as it said it hired Clearview Capital Consult for communications and strategic advisory services.
The vertically integrated cannabis company said Clearview will assist with the development and implementation of its capital markets and communications strategy, along with general strategic advisory.
Harvest One Cannabis Inc (CVE:HVT) (OTCMKTS:HRVOF) also gained 3.3% in Canada at C$0.31 after its subsidiary Satipharm Ltd received Health Canada's permission to import its proprietary CBD Gelpell capsules for research and development.
In September and October, the company built out its infrastructure by doubling the production capacity for SolDaze and Lyfted Farms business units. The first monthly revenue numbers for October exceeded C$250,000 and the company will continue to scale the production and revenues in the coming months, the company said in a statement.
Shares of TransCanna fell 12.2% at C$0.86.
Over on the big board in Toronto, Charlotte’s Web Holdings Inc (TSE:CWEB) lost 6.3% at C$14.49 and 6% on OTC markets at US$11.01 ahead of its quarterly earnings report due next week.