Cannabis stocks plummeted last week, after the Jeff
Sessions panic – spurred by the repeal of the Cole Memo, an Obama-era memorandum that has essentially protected state-legal
cannabis businesses from federal prosecution. The tumble was short lived, though, as evidenced by the rebound seen in the U.S.
Marijuana Index last Friday, and this week’s first couple of days.
The index did experience a decline toward the end of this week, falling 2.8 percent Friday, but the move was moderate when
compared to last week’s selloff.
Also witnessing a drop between Wednesday and Friday, inclusive, were the Horizons Marijuana Life Sciences Index
ETF (TSE:HMMJ), as it mimics the aforementioned index, and the ETFMG Alternative Harvest ETF (NYSE:
MJX). Over the whole week, the indices lost 10 percent and 7.87
percent, respectively.
Source: United States Marijuana Index
Let’s take a look at the indexes’ top components:
-
Aurora Cannabis Inc (OTC: ACBFF) lost
more than 21.7 percent
-
Canopy Growth Corp (OTC: TWMJF) slipped
5.4 percent
-
Aphria Inc (OTC: APHQF) tumbled almost
13.8 percent
-
GW Pharmaceuticals PLC- ADR (NASDAQ: GWPH) dropped just 1.1 percent
-
MedReleaf Corp (OTC: MEDFF) fell over
21.3 percent
-
Scotts Miracle-Gro Co (NYSE: SMG)
surprisingly ended the week up 0.3 percent
-
Cronos Group Inc (OTC: PRMCF) declined
22.1 percent
-
CannTrust Holdings Inc (OTC: CNTTF) took
a 10.4 percent dive
Benzinga reached out to Green Market Report CEO Debra Borchardt, who
shared her highlights for the week.
On the earnings front, Aphria announced second quarter revenue of C$8.5 million ($6.8 million), up from C$5.2
million ($4.16 million) in the same quarter last year. Delivering an impressive performance, the company posted a 50 percent
increase in gross profit, from C$4.12 million ($3.3 million) a year ago to C$6.2 million ($5 million) this year.
On the financing side of things, the most relevant transaction came from MedReleaf, which announced a $100 million deal with
Canaccord Genuity and GMP Securities L.P. Proceeds will be used to buy and build new cannabis cultivation and manufacturing
facilities.
Related Link:
Even Alabama
Republicans Disagree With Attorney General Jeff Sessions' Views On Marijuana Legalization
Image Credit: Javier Hasse
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