Cannabis stocks in the US and Canada had a down day Wednesday, trading in the same direction as the S&P/TSX Composite Index.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, dropped 0.4% to 259.86.
Canopy Growth Corp (NYSE:CGC) (TSE:WEED) dropped 0.5% to US$43.45 in New York trading after CEO Bruce Linton told CNBC at the World Economic Forum in Davos, Switzerland, that the cannabis industry faces a "massive inflationary bubble" and that investors should be careful.
"Everybody wants to be in the cannabis space, and I think investors have to be selective because … there will be a new name every week," Linton said.
READ: Canada's Canopy Growth shares bloom as it receives license to develop industrial hemp in New York
Merger speculation sank Aphria Inc (NYSE:APHA) (TSE:APHA). Its stock fell 2.3% to US$6.92 in New York on Wednesday after advising shareholders to take no action until its board has made a recommendation regarding an unsolicited takeover offer from Green Growth Brands Inc. (OTCMKTS:GGBXF) (CSE:GGB).
The agreement could value the Canadian cannabis company at C$2.35 billion (US$1.76 billion).
In December, Aphria rejected Green Growth’s takeover bid on the grounds that it significantly undervalued the company.
Aphria fell 2.1% to C$9.23 in Canadian trading. Green Growth declined 2.3% to US$4.37 on the OTC Markets and was down 2.8% to C$5.81 in Canada.
Hexo Corp (TSE:HEXO) slipped 2.1% to C$6.92 in Toronto after earlier this week announcing a proposed offering of common shares of C$50 million (US$37 million).
In September, Riposte Capital, which owned 2.5% of the cannabis company, urged it to explore more deals.
The Green Organic Dutchman Holdings (TSE:TGOD) (OTCQX:TGODF) shares climbed, up 2.7% at C$3.05.
Last week, the company announced it had tapped Dr Rav Kumar as its chief scientific officer.
Organigram Holdings Inc (OTCMKTS:OGRMF) (CVE:OGI) shares were up 0.2% to US$4.69 in OTC Markets trading after the licensed cannabis producer announced OrganiCare, a program designed to improve access to medical cannabis for low-income patients.
Effective immediately, patients who earn an annual income less than C$35,000 per year qualify for a 30% price reduction on dried cannabis products and oils, the New Brunswick company said.
The stock advanced 1.6% to C$6.26 in Canadian trading.
Contact Dennis Fitzgerald at dennis@proactiveinvestors.