Cannabis stocks started the week with an abrupt thud, with significant drops across North American markets.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, was down 0.7% to 286.02 points by Monday afternoon. The Horizons Marijuana Life Sciences Index ETF was down 0.2% at C$20.93.
There were a host of laggards on Monday.
Last week, analyst Piper Jefferies cut the target price for Cronos Group (CRON) to C$15 from $17 Canadian dollars, on the back of expectations of a lower share in Canada’s recreational market.
Tilray Inc (NASDAQ:TLRY) shares were also lagging on Monday, down 1.6% at US$49.41. Jeffries also cut Tilray's price target last week, to $57 from $61 due to concerns about Tilray's cost of purchasing from a third-party, a result of a supply shortage, how upgraded its rating to Hold from Underperform.
Joining in the broad decline of cannabis stocks was Planet 13 Holdings Inc (OTCMKTS:PLNHF), which fell 1.1% to US$2.34.
The cannabis megastore released its financial results last week. In the fourth quarter ended December 31, 2018, the company reported revenues of US$8.3 million as compared to US$3.4 million, an increase of 145%. However, it reported a net loss of US$4.0 million as compared to a net profit of $259,493 in the same period in 2017.
A number of stocks bucked the trend on Monday and gained ground.
The Vernon, BC-based cannabis and hemp wellness brand for pets announced last week it was raising C$1 million in capital from exercising warrants.
CEO Darcy Bomford said the capital infusion will help the company expand operations globally, among other uses.
“This additional capital will strengthen our balance sheet and allow us to continue to execute on our growth plans, including bringing a legally-compliant CBD product for pets to market and expanding our global distribution, including entering new markets in the Asia Pacific region and Australia,” he said in a statement.
Other gainers on Monday included Aleafia Health Inc (TSE:ALEF) (OTCMKTS:ALEAF), which saw its shares up 13.3% at US$1.16 in New York as the company announced it was entering the German medical cannabis market via its joint-venture with German pharmaceutical wholesaler Acnos Pharma GmbH.
The cannabis streaming company has operations across Canada and Uruguay.
Contact Katie Lewis at [email protected]
Follow her on Twitter @kelewis