Buds & Duds: Cannabis stocks slow down but show no signs of giving up last week's gains

Cannabis stocks slowed their roll on Tuesday but the sector shows no sign of losing last week’s gains.

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, eased 0.9% higher at 125.2 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF lost 0.8% at C$9.94, while the OTCQX Cannabis index fell 1% to 504.6 points.

Buds

TILT Holdings Inc (CSE:TILT) (OTCMKTS:TLLTF) CEO Mark Scatterday told investors that the Massachusetts-based cannabis firm is moving into 2020 with a “reinvigorated sense of purpose and energy.”

The cannabis technology firm chief said in a letter to shareholders that the plant-touching assets continue to generate revenue and free cash flow, which will help TILT to fund the expansion of two of its portfolio companies.

Investors sent TILT’s stock 3% higher in Canada at C$0.35 and 3.7% higher over the counter at US$0.27.

Aphria Inc (TSE:APHA) (NYSE:APHA) was also off to a good start to the week, with its stock trading up 1.1% in Toronto at C$7.10 and 3.3% in New York at US$5.44. On Tuesday the cannabis firm received its EU GMP certification for its subsidiary ARA – Avanti Rx Analytics, allowing it to ship bulk and dried flower and cannabis oil throughout the continent.

Sundial Growers Inc (NASDAQ:SNDL) also saw a 5.7% gain to trade at US$3.66 on no new news.

Duds

On the flip side, Tetra Bio-Pharma Inc (CVE:TBP) announced a C$10 million bought deal offering courtesy of Echelon Wealth Partners to go towards working capital, it said Tuesday.

Shares of the firm lost 17.7% in Canada at C$0.51 and 20% in the US at US$0.40.

The cannabis company is on solid ground, however, having days ago received two OTC Drug Identification Numbers from Health Canada that nearly doubled its share price.

Colombia-focused Avicanna Inc (TSE:AVCN) (OTCMKTS:AVCNF) dropped 4.8% in Toronto at C$1.99 and 14.8% over the counter at US$1.55. The company said it had appointed international business executive Benjamin Leavenworth as a new independent director.

Contact Angela at [email protected]

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Story by ProactiveInvestors