logo-loader

Buds & Duds: Ontario's cannabis retail expansion plan gives cannabis stocks a lift headed into weekend

The Green Organic Dutchman was up after it arranged a credit facility of nearly C$42 million

pot leaf
Sunniva Inc sank on Friday after it said it was reducing operations to conserve cash

Cannabis indices got a lift on Friday as news that Ontario was scrapping its much-maligned lottery system for new retail stores in Canada’s most populous province.

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, was 1.4% higher at 116.7 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF jumped 2.4% at C$9.55, while the OTCQX Cannabis index gained 0.6% to 434 points.

Buds

The Green Organic Dutchman Holdings Ltd (TSE:TGOD) (OCTMKTS:TGODF) announced Friday it has arranged a credit facility of nearly $42 million.

The Ontario-based cannabis company said it has entered into a binding term sheet with Maynbridge Capital Inc for a senior secured first lien credit facility of up to $41.7 million. The facility replaces a proposed mortgage loan as well as the sale and leaseback of TGOD’s Ancaster Energy Centre, both of which are no longer being pursued by the company.

TGOD’s shares got a 3.7% lift in Canada at C$0.85 and 4.7% over the counter at US$0.65.

Heritage Cannabis Holdings Corp (CSE:CANN) (OTCMKTS:HERTF) was also up 8.2% over the counter at US$0.18 after the company announced it has provided C$250,000 in initial funding to support the development of a joint venture extraction facility at Empower Clinics Inc’s (CSE:CBDT) (OTCMKTS:EPWCF) hemp processing facility in Oregon.

Similarly, Empower Clinics’ wholly-owned subsidiary, Empower Healthcare Assets Inc, has issued a convertible promissory note in the principal amount of C$250,000 to Heritage.

Elsewhere, Organigram Holdings Inc (NSADAQ:OGI) (TSE:OGI) was up 2.7% in Canada at C$3.45 and 1.4% in the US at US$2.60. The cannabis producer received its Health Canada license for 16 additional cultivation rooms, boosting its capacity by nearly 13,000 kilograms during the first year of production.

Duds

Sunniva Inc (CSE:SNN) (OTCQB:SNNVF) shares sank on Friday, down 20.6% in Canada and 23% over the counter at US$0.18. The embattled company told investors it was reducing its distribution and extraction operations in California in an effort to conserve cash.

The Vancouver-based company is in the midst of a lawsuit brought against the firm in relation to loans provided for its medical facility in Okanagan Falls, BC. The lender said it was “misled” on the status of Sunniva’s planned sale of the facility and is now seeing to secure a mortgage on the property.

Curaleaf Holdings Inc (CSE:CURA) (OTCMKTS:CURLF) slipped 2.3% in Canada at C$7.70 and 1.7% over the counter at US$5.85 on no new news.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Green Organic Dutchman Holdings Ltd. named herein, including the promotion by the Company of Green Organic Dutchman Holdings Ltd. in any...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Phunware reveals details for upcoming Phun Ecosystem launch mid-2020

Phunware Inc (NASDAQ:PHUN) Product and Engineering EVP Matt Lindenberger tells Proactive the technology company has unveiled a litany of milestones for 2019 as well as a roadmap detailing its plans for the commercial launch of its Phun Ecosystem this year. Lindenberger says the company is very...

1 hour, 57 minutes ago

3 min read