Buds & Duds: Cannabis stocks take on Wednesday with gusto; CROP Infrastructure jumps on product placement news

Cannabis stocks recovered from Tuesday’s tumble and took on Wednesday with fervour, with broad gains sweeping across the US and Canada.

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, rose 1% to 307.61. The Horizons Marijuana Life Sciences Index ETF was up 1% at C$21.93.

Buds

CROP Infrastructure Corp (CSE:CROP) (OTCMKTS:CRXPF) shares jumped Wednesday after it announced that its tenant brands, Hempire and Evolution, are now available in 40 retail locations.

Shares were up 4.8% at C$0.33 in Toronto and up 4.6% at US$0.25 in New York on Wednesday midday. 

“Our tenant growing team and their sales team have made outstanding progress with product placement in 40 retail locations for both flower, oils and extracts” said CROP’s CEO Michael Yorke in a statement. “We continue to build out our brands in California and Nevada and our objective is, ultimately, to be in as many states as possible.”

READ: CROP brands now available in 40 retail locations across US Northwest

Empower Clinics Inc (OTCMKTS:EPWCF) (CSE:EPW) shares continued to soar after it released news Tuesday that it has closed more than $2.9 million in debenture and equity financings to be used to complete strategic acquisitions and for working capital.

As part of the offerings, AgraFlora Organics International, a cannabis firm with a large-scale 2.2 million sq/ft greenhouse in British Columbia, has invested $1 million into Empower.

The medical cannabis clinic operator’s shares were up 14.3% at C$0.20 in Toronto and up 22.5% at US$0.15 in New York. 

READ: Empower Clinics secures $2.9M to advance business; AgraFlora Organics invests $1M

Other gainers on Wednesday included Planet 13 Holdings Inc (CSE:PLTH), which was up 10% at C$2.52. 

On Wednesday, the company reported US$5.49 million in revenue from its Las Vegas Cannabis Entertainment Complex in March 2019, which is the world’s largest cannabis dispensary. The company said in March, almost 100,000 people entered the dispensary. 

Duds

Aurora Cannabis Inc (NYSE:ACB) (TSX:ACB) shares dropped Wednesday after the company announced filed a preliminary shelf prospectus to raise up to US$750 million over 25 months through shares, debt and other offerings.

According to a company statement, funds would be used for global expansion and partnering strategy. 

“Although we have no immediate intention of drawing capital against this shelf prospectus, we have introduced this option as a prudent and long-term strategic measure to provide us with flexibility in access to growth capital, if or when required, to continue executing on our global expansion and partnering strategy,” said Executive Chairman Michael Singer in a statement. 

MariMed Inc (OTCMKTS:MRMD) shares fell after the company filed for a 15-day extension with the US Securities and Exchange Commission to file its annual report for 2018. 

“Though we are disappointed by the short delay, we fully expect a clean audit,” said Jon Levine, MariMed’s Chief Financial Officer in a statement. 

Shares were down 4.4% at US$3.06. 

Contact Katie Lewis at [email protected]

Story by ProactiveInvestors