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Buds & Duds: Cannabis stocks weak but Namaste rises on back of permanent CEO appointment

Chairman Branden Spikes said Meni Morim as interim has led Namaste through a “period of significant change where difficult decisions were required”

Cannabis leaf
Also on the move were TILT Holdings, Biome Grow, Curaleaf, Isodiol and Aphria

Cannabis stocks lagged Monday with broad-based drops across the board. 

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, dropped 1% at 183.2 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF was down 1% at C$14.37, while the OTCQX Cannabis Index slipped 1.4% at 630 points.

Buds

Despite the lagging trend, a number of cannabis stocks were on the rise Monday. 

Namaste Technologies Inc (CVE:N) (OTCMKTS:NXTTF) shares jumped after it announced it has appointed Meni Morim as the Canadian cannabis e-commerce platform company’s permanent chief executive officer.

Shares of Namaste rose 5% at C$0.42 in Toronto, and were up 6.4% at US$0.31 in New York. 

Morim has been the company's interim CEO since February, and its chief product officer since May 2018.

In a statement, Branden Spikes who is the chairman of Namaste Technologies said: "Meni has led Namaste through a period of significant change where difficult decisions were required while preserving the key attributes that make it an exciting company. After a thorough review process, the board has concluded that Meni is the right leader to execute on the company's strategy and to proliferate its online marketplace.”

READ: Namaste Technologies names Meni Morim as permanent CEO and board member

Also gaining Monday was TILT Holdings Inc (CSE:TILT) (OTCMKTS:SVVTF), up 6.2% at US$0.63 in New York. The firm is set to release its 2Q earnings on Wednesday. 

The Massachusetts-based technology and infrastructure company provides products and services in the cannabis industry, including offering same-day delivery for retailers, wholesalers and consumers in four states.

Other stocks on the rise Monday included Biome Grow Inc (CSE:BIO) (OTCMKTS:BIOIF), which was up 6.1% at C$0.35 in Toronto. On Friday, the company said it will release its financial results for the second quarter ended June 30, 2019 before the market open on August 29, 2019.

The firm recently announced it will be selling its premium cannabis flower in New Brunswick thanks to a new supply agreement with Cannabis NB Ltd,

Biome said the cannabis products will initially be supplied by its Highland Grow Inc subsidary, which is based in the eastern Canadian province of Nova Scotia. Adding distribution in New Brunswick was a high priority for the Atlantic Canada-focused company, CEO Khurram Malik said in a statement.

“Our high quality, premium flower and pre-rolls have proven very popular with discerning consumers in Nova Scotia, Newfoundland-Labrador and most recently, in Saskatchewan,” Malik added. “We’re excited to become an approved supplier to New Brunswick enabling us to introduce our brands to cannabis connoisseurs in 'The Picture Province'.”

READ: Biome Grow signs new agreement to sell cannabis flower in New Brunswick
Duds

Laggards Monday included Curaleaf Holdings Inc (CSE:CURA) (OTCMKTS:CURLF), which unveiled a property deal which will see the firm sell off a number of its real estate holdings, while maintaining usage. The sale-leaseback agreement with Freehold Properties, valued at approximately US$28.3 million is for six of its properties in Florida, Massachusetts and New Jersey.

Shares of Curaleaf eased 3% at C$8.28 in Toronto, off 2.7% at US$6.24 in New York. 

"This transaction provides an additional stream of liquidity for us with an attractive cost of financing previously not available in our industry," said Joseph Lusardi, CEO of Curaleaf. "We are delighted to see more traditional sources of financing becoming available to the cannabis industry and intend to deploy the proceeds to continue our rapid expansion and create shareholder value."

Isodiol International Inc (CSE:ISOL) (OTCMKTS:ISOLF) shares also dropped Monday, down 7.1% at US$0.26 in New York on a lack of new news. The firm produces hemp derivatives in bulk quantities, white label formulas, and a branded line of finished goods.

Aphria Inc (TSE:APHA) (NYSE:APHA) shares also dropped Monday, down 3.7% at US$6.32 in New York, down 4.6% at C$8.37 in Toronto. 

-- Harriet Mclelland contributed to this report -- 

Contact Katie Lewis at [email protected]

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Price: 0.355 CAD

TSX-V:N
Market: TSX-V
Market Cap: $115 m
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