Buds & Duds: Cannabis stocks moving on a flurry of deals; Harvest One shares soar on deal with Greenbelt

North American cannabis stocks had a promising start to the week, amid a flurry of deals, license approvals and earnings results. 

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, was up 1.14% to 305.12 on Monday midday. The Horizons Marijuana Life Sciences Index ETF was up 0.65% at C$21.72. 

Buds

Harvest One Cannabis Inc (CVE:HVT) (OTCMKTS:HRVOF) shares climbed after announcing it has acquired a 52% interest in Greenbelt Greenhouse Ltd, a private company located in Hamilton.

Greenbelt Greenhouse will supply Harvest One with high-quality greenhouse-grown cannabis from a 152,000 square foot facility, the company said in a statement. 

“We are excited to acquire a majority interest in Greenbelt which significantly increases Harvest One’s cannabis supply, as we continue our formulations on cannabinoid infused health, wellness, and self-care products across our house of brands,” said Harvest One CEO Grant Froese in a statement. “In addition to the exceptional greenhouse facility, this acquisition also gives Harvest One space to build out its own extraction capabilities upon licensing which fulfills our goal of vertical integration from cultivation, to processing, extraction and, ultimately, premium infused products.”

Harvest One shares jumped 6.3% to C$1.01 in Toronto and up 4% at $US$0.76 in New York. 

Shares of Heritage Cannabis Holdings Corp (CSE:CANN) (OTCMKTS: HERTF) jumped after it released news that it had received its processing and medical sales licence from Health Canada. 

Shares were up 6.1% at C$0.70 in Toronto, and up 5.9% at US$0.52 in New York. 

The Vancouver-based cannabis company said its wholly-owned subsidiary, CannaCure, received both its standard processing licence and medical sales licence from Health Canada. 

Other gainers on Monday included Denver-based hydroponic warehouse GrowGeneration Corp (OTCMKTS:GRWG), which was up 7.8% at US$3.25 on the back of strong fiscal earnings results, released Monday. 

Aphria Inc (TSE:APHA) (NYSE:APHA) shares climbed after it announced it has launched CannRelief, its first CBD-based nutraceutical and cosmetics product line for the German market. Shares were up 5.5% at C$13.15 in Toronto. 

Duds

On Monday, news came out that US cannabis operator Cresco Labs Inc (OTCMKTS:CRLBF) (CSE:CL) struck a deal with Origin House (CSE:OH) (OTCMKTS:ORHOF) in a friendly, all-stock deal worth US$1.1 billion.

Shares of Origin House lagged, down 4.8% at US$8.60 in New York, and off 4.3% at C$11.53 in Toronto. Shares of Cresco Labs were down 0.3% at US$11.22 in New York and down 0.9% at C$14.91 in Toronto. 

Contact Katie Lewis at [email protected]

Story by ProactiveInvestors