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Buds & Duds: Cannabis stocks drop but Crop Infrastructure shares jump after raising C$1 million

Also on the move were True Leaf Brands, Canopy Growth, Acreage, Charlotte's Web Holdings
cannabis flower
Proceeds from CROP's debenture offering will be used to grow the firm's US operations and for general working capital

Cannabis stocks continued to sink Friday after a tough week with broad losses across North American markets.

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, was down 2.4% to 231.56 points by Friday's close. The Horizons Marijuana Life Sciences Index ETF was down 1% to C$18.40. The OTCQX Cannabis Index was down 5.4% at 689.4 points.

Buds

Shares of CROP Infrastructure Corp (CSE:CROP) (OTCMKTS:CRXPF), the cannabis-focused group, were up Friday after it announced it has closed its previously announced debenture offering, raising C$1 million.

Shares were up 4.8% at C$0.22 in Canadian trading. 

As reported earlier this week, the proceeds are expected to be used to continue to grow the firm's US operations and for general working capital.

READ: CROP Infrastructure closes debenture offering, raising up to C$1 million

Other gainers Friday included True Leaf Brands Inc (CSE:MJ) (OTCMKTS:TRLFF), which announced earlier this week is bringing its hemp-based pet products to Asia.

The company signed a memorandum of understanding with Eagle Vet, a pet health care distributor with operations in South East Asia, Africa and the Middle East, to introduce its products in Korea.

Shares were up 2.3% at C$0.44 in Toronto. 

Duds

Canopy Growth Corporation (TSE:WEED) (NYSE:CGC) and Acreage Holdings Inc (OTCMKTS:ACRGF) (CSE:ACRG.U) reminded shareholders Friday to support the proposed mega merger of the cannabis companies.

Shares took a hit, with Canopy down 1% at C$55.26 in Canadian trading and Acreage was down 0.3% at US$18.10 earlier in New York, however turned it around by the close, up 3.2% at US$18.74. 

Canadian marijuana producer Canopy Growth has agreed to spend US$3.4 billion to acquire Acreage, a New York-based cannabis operator licensed in 20 states. In addition, Canopy will pay Acreage shareholders US$300 million.

Voting on the massive deal is now open for shareholders and will close at 10 a.m. EST on June 17. Approval is expected.

READ: Canopy Growth Corporation and Acreage Holdings remind shareholders to support $3.4B mega merger

Charlotte’s Web Holdings Inc (CSE:CWEB) (OTCQ:CWBHF), the maker of hemp-derived CBD extract products, shares declined on Friday, down 7.8% at C$14.84 in Toronto, down 8% at US$11.06 on no news. 

Contact Katie Lewis at [email protected]

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