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Buds & Duds: Cannabis stocks inch up Friday; EnWave shares on the rise after new royalty-bearing licence deal

EnWave had posted fiscal third-quarter results Thursday that showed revenue hit an all-time high

Cannabis flower
Also on the move were Valens, Flowr, Innovative Industrial Properties, Canopy Growth and CannTrust

Cannabis stocks inched higher Friday at the end of a mixed week, with a long holiday weekend pending. 

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, nudged up 0.3% at 180.9 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF was up 0.2% at C$14.32, while the OTCQX Cannabis Index gained 0.5% at 652.5 points.

Buds

Gaining ground Friday was EnWave Corporation (CVE:ENW) (OTCMKTS:NWVCF), up 3.7% at C$2.27 in Toronto, up 4.1% at US$1.71 in New York, after the group revealed it had signed a new royalty-bearing licence with a pharmaceutical-grade medicinal cannabis cultivator in Ontario.

The agreement with Glasshouse Botanics Inc sees EnWave licence its proprietary Radiant Energy Vacuum (REV) dehydration technology to Glasshouse in return for a royalty based on the weight of dried finished cannabis.

Vancouver-based EnWave, which is developing commercial applications for its dehydration technology in the cannabis, food and pharmaceutical industries, posted fiscal third-quarter results Thursday that showed revenue hit an all-time high.

READ: EnWave posts all-time high quarterly revenue driven by cannabis dehydration and Moon Cheese

Also on the rise Friday was Valens GroWorks Corp (CVE:VGW) (OTCMKTS:VGWCF), up 5.4% at C$3.50 in Canadian trading, up 5.5% at US$2.64. 

The extraction-focused firm started trading on the OTCQX Best Market on Monday having graduated from the OTCQB Market.

READ: Flowr finalizes deal with Holigen

Other gainers Friday included The Flowr Corporation (CVE:FLWR) (OTCMKTS:FLWPF), which was up 3.5% at C$2.93 in Toronto, up 2.3% at US$2.20 in New York. 

The firm recently completed the acquisition of the remaining 80.2% interest in Holigen Holdings through a share purchase agreement. The move will mean the addition of operations in Portugal and Australia to Flowr's existing Canadian platform. 

Duds

A number of stocks lagged on Friday. 

Innovative Industrial Properties Inc (NYSE:IIPR) shares sank, down 12% at US$89.47, despite releasing no news.  

The company leases specialized industrial properties to state-licensed operators for their regulated medical cannabis facilities.

Also lagging was TILT Holdings Inc (CSE:TILT) (OTCMKTS:SVVTF) down 7.4% at US$0.59 in New York, off 7.1% at C$0.78 in Toronto after the firm released its 2Q earnings earlier this week. 

The company reported revenue of US$39 million, up 13% from the previous quarter. TILT reported a net loss of US$48.9 million, compared to US$5.3 million in the prior-year period and US$77.9 million in the previous quarter.

Other stocks dropping included Canopy Growth Corporation (TSE:WEED) (NYSE:CGC), down 1.4% at US$23.79. 

CannTrust Holdings Inc (TSE:TRST) (NYSE:CTST) shares were also lower, down 2.7% to C$2.30 in Toronto, and off 2.9% at US$1.73 in New York. 

Year-to-date, CannTrust stock has dropped from C$7.08 to C$2.30, as the firm has been embroiled in a scandal since early July after Health Canada found it was growing cannabis in unlicensed rooms at its Vaughan, Ontario facility.

Contact Katie Lewis at [email protected]

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