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Cannabis stocks were mixed on Wednesday, with Aphria Inc. down after announcing plans to issue convertible debt of up to $ 300 million.
Aphria, based in Leamington, Ontario
APHA -10.13%
APHA -9.93%
said that he would sell the tickets as part of a private placement in order to use the proceeds of the sale to finance the international expansion, for acquisitions and for commercial purposes tote -all. The stock has been under pressure since the company posted its results earlier this week, posting a significant loss for its third fiscal quarter, which overshadowed the increase in revenues recorded during the first full quarter of legalization in Canada.
Evolve Funds Inc., also from Canada, announced the launch of the first publicly traded fund focused on the cannabis industry in the United States. North American ETF Cannabis Holdings Inc.
USMJ, + 16.67%
began trading on the NEO Exchange in Toronto on Wednesday.
Evolve's chief executive, Raj Lala, said the cannabis opportunity in the US was similar to Canada's a few years ago, but could be much broader.
"Given the US population relative to Canada, some US cannabis companies generate more revenue than Canadian producers, even though their market capitalization is much lower," he said in a statement.
The fund will compete on Thursday, when Horizons ETFs Management Inc. will launch its own fund tracking companies in the United States. This fund, the Horizons US Marijuana Index, is also listed on the NEO Exchange and will focus on US cannabis and hemp companies. The ETF will trade under the symbol "HMUS".
"As the United States continues to liberalize its marijuana regulations, we expect more investors to seek to invest in companies with significant business operations in the US market." HMUS will provide a diversified and liquid means of obtaining this exposure within a single ETF, "Horizon CEO Steve Hawkins said in a statement.
Do not miss: Greenlane IPO: 5 things to know about the closest thing to an American cannabis company to be made public on Nasdaq
The main holdings of this fund include Curaleaf Holding Inc.
CURLF, + 13.27%
Cresco Labs Inc.
CRLBF, + 6.43%
and Charlotte's Web Holdings Inc.
CWBHF, + 8.47%
Canopy Growth Corp.
GSC + 2.76%
CANNABIS, + 2.54%
According to a report by Bloomberg, CEO Bruce Linton expects a turnover of more than C $ 1 billion ($ 744 million) during this fiscal year. That would be 19% above analysts' estimates. Linton expects revenues to grow steadily throughout the year and accelerate in the final quarter as Canada adds more retail outlets.
Shares of Village Farms International Inc.
VFF + 10.34%
rose 3.9%, after recovering some of their losses the day before, after short-seller Citron Research said the company was working with shady stock promoters who had a history of bankruptcy, while insiders of the company had abandoned their shares.
Lemon said the company should be reviewed by the US Securities and Exchange Commission because a lot of the alarm signals reported by the regulator to investors are obvious.
"As the universe of rapidly growing cannabis stocks invests in this global trend, why would investors choose to sell their capital to a company that owns only 50% of a farm business alongside the US?" An operator with a long tradition of promoting stocks and failures? " Lemon said in a research report. "With the same $ 700 million worth of business, you can invest in a much higher quality operator, such as CannTrust. Unlike multi-state US operators on the Canadian list or vertically integrated players, Village Farms is at best a farmer with a history of failure. "
See also: Cannabis companies say that they grow enough pot, they just can not deliver it
The company was not immediately available for comment. The stock dropped 11% over the week.
From Colorado, we learn that Carl's Jr. hamburger chain plans to test a CBD-infused cheeseburger for a day – 4/20 of course – in a Denver restaurant. Colorado is one of only 10 states to have legalized cannabis for recreational purposes, but the company is still at risk of prosecution.
CBD, a non-intoxicant cannabis ingredient that is widely recognized as having well-being properties, is considered by the Food and Drug Administration to be a drug because it is used in the only cannabis-based drug to have been approved by the FDA for the treatment of epilepsy in children. The FDA informed companies that they could not add it to food or drink without its permission.
"We reviewed the problems associated with CBD oil derived from hemp and we will offer it on a 4/20 site in Denver, a city that has been a pioneer of the CBD movement" said a spokesman for Carl &'s Jr. in an email. statement to MarketWatch.
For more, read: This is the only place to get a CBD-infused CBD cheeseburger on 4/20
Elsewhere in the sector, Groupe Cronos Inc.
CRON, + 0.82%
CRON, + 0.76%
was down 0.9%, Aurora Cannabis Inc.
CBA + 0.79%
CBA + 1.10%
was up 1.3% and Tilray Inc.
TLRY, + 0.84%
was down 0.6%.
Hexo Corp.
hexo, + 11.43%
was up 8.7% after Bank of America began hedging the stock with a purchase price.
Green Organic Dutchman Holdings Ltd.
TGODF, + 1.01%
tgod, + 1.52%
was up 0.3%. CannTrust Holdings Inc.
CTST, + 6.29%
TRST, + 6.37%
was up 6.3% and GW Pharmaceuticals PLC
GWPH, -4.33%
was down 1.6%.
Lily: The stock of Tilray increases after the company has shown that it can sell leisure pot
Horizons Marijuana Life Sciences ETF
HMMJ, + 1.08%
up 0.3%, and ETFMG Alternative Harvest ETF
MJ + 0.12%
was flat.
The Dow Jones Industrial Average
DJIA, -0.01%
and the S & P 500 index
SPX, -0.23%
were down 0.1%.
See also: In Weed Country, California, forest fires burn both crops and crops
Cannabis Watch: All Cannabis Business Coverage by MarketWatch
Additional report by Tomi Kilgore
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