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 HMMJ, as it mimics the aforementioned index, and the ETFMG Alternative Harvest ETF 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 ACBFF lost more than 21.7 percent
- Canopy Growth Corp TWMJF slipped 5.4 percent
- Aphria Inc APHQF tumbled almost 13.8 percent
- GW Pharmaceuticals PLC- ADR GWPH dropped just 1.1 percent
- MedReleaf Corp MEDFF fell over 21.3 percent
- Scotts Miracle-Gro Co SMG surprisingly ended the week up 0.3 percent
- Cronos Group Inc PRMCF declined 22.1 percent
- CannTrust Holdings Inc 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.
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Image Credit: Javier Hasse
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