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Buds & Duds: Cannabis stocks drop on the back of broader market weakness

Shares of Cronos perked up again after it was reported that the maker of Marlboro cigarettes is in initial discussions to either take a stake in or possibly acquire the company

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Aphria Inc shares continued to drop on Tuesday

Cannabis stocks in the US and Canada had a tough day Tuesday, dipping lower, alongside other markets.

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada dropped 5.25% to US$232.90 on Tuesday. 

Buds

Shares of Cronos Group Inc (NASDAQ:CRON) perked up up 4.7% at US$10.65. 

Yesterday, it was reported that Altria Group Inc (NYSE:MO), the maker of Marlboro cigarettes, is in initial discussions to either take a stake in or possibly acquire Cronos as it looks to widen its business beyond traditional tobacco.

READ: Altria in investment talks with Canadian cannabis company Cronos

MariMed Inc (OTCMKTS:MRMD) shares were up 0.25% US$4.06.

Duds

Shares of Aphria Inc (TSE:APH, OTCQB:APHQF) continued to sink on Tuesday, down 15.79% at C$6.40.

The stock plunged for the second day in a row, after the company fought allegations from a short seller that its recent overseas takeovers are worthless and designed to make company insiders rich. 

Yesterday, Aphria shares plunged 27% on Monday when prominent short-seller Gabriel Grego of Quintessential Capital Management called the Leamington, Ontario-based marijuana firm "a shell game with a cannabis business on the side."

Other duds Tuesday included Liberty Health Sciences Inc (CSE:LHS, OTCQX:LHSIF), which was down 12.9% at US$1.08.

The company said it plans to open two new dispensaries in Miami and Dania Beach by the end of November and three more in Hollywood, Bonita Springs and Orange Park by the end of this December.

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