Buds & Duds: Cannabis stocks reverse; Nabis Holdings jumps after securing Phoenix dispensary

Cannabis stocks were in the red on Wednesday, reversing yesterday’s gains across North American markets.

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, lost 1.5% to 136.5 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF fell 2.9% to C$10.97, while the OTCQX Cannabis Index dipped 1.4% to 504.7 points.

Buds

Nabis Holdings Inc (CSE:NAB) (OTCMKTS:NABIF) shares gained traction after it announced it regulatory approval to operate the assets of Perpetual Healthcare Inc’s Emerald Phoenix, a medical marijuana dispensary, and Infusion Edibles, a cannabis-infused snack brand. 

The approval brings Nabis’ portfolio of operating licensing rights to a total of 11 entities across four states, including retail, cultivation and processing facilities. Arizona-based Emerald Phoenix and Infusion Edibles were both originally acquired in August. 

Nabis shares rose 7.1% in Canada at C$0.08 and 4.3% on OTC markets at US$0.06.

EuroLife Brands Inc (CSE:EURO) (OTCMKTS:CANVF) was also up on Wednesday on the news that the firm has hired merchant bank and advisory group JJ WOLF Investments Ltd to help it advance the cannabis-focused firm’s activity in Europe. 

In a statement, the Vancouver-based company also said Steve Loutskou had resigned as chief operating officer (COO), secretary and director to take up a strategic advisory position in the company to streamline efficiencies.

Shares of EuroLife gained 6.7% in Canada at C$0.08 and traded at US$0.06 on OTC markets.

Lexaria Bioscience Corp (CSE:LXX) (OTCMKTS:LXRP) also gained 10.3% on Wednesday in spite of a lack of new news. Last week the firm told investors that it’s ongoing licensing agreement with Altria Ventures Inc is “progressing well.”

Duds

HEXO Corp (TSE:HEXO) (NYSE:HEXO) fell 3% at C$3.27 in Toronto and US$2.49 in New York on Wednesday as investors awaited the result of news that the company is launching a new low-cost cannabis product that is designed to lure consumers away from the black market.

Aphria Inc (TSE:APHA) (NYSE:APHA) shares fell back down to earth after soaring yesterday following the release of a second consecutive profitable quarter that saw the cannabis producer post C$16.4 million in profit.

Shares of Aphria declined 8% at C$6.60 in Toronto and 7.7% in New York at US$5.01.

Contact Angela at [email protected]

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Story by ProactiveInvestors