Cannabis stocks tumbled Wednesday 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 1.5% at 182.7 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF dropped 2.2% at C$14.33, while the OTCQX Cannabis Index was down 1.3% at 668.58 points.
Despite the lagging sector, a number of stocks outperformed.
BevCanna Enterprises Inc (CSE:BEV) (OTCMKTS:BVNNF) shares were on the rise Wednesday after the firm signed a letter of intent with Clearwater CannGrow to produce organic cannabis on 130 acres of its land.
The plan, the company said in a statement Wednesday, is for CannGrow to plan and operate the cultivation on BevCanna’s plot of land near Osoyoos, British Columbia. The two companies expect to reach a definitive agreement on a three-year term within two weeks.
BevCanna stock jumped 1.7% to C$0.60 in Toronto, up 3.7% at US$0.44 in New York.
BevCanna expects to produce over 100,000kg of biomass through the venture and the finished extract is expected to yield over 10,000kg of cannabinoids.
TruTrace Technologies Inc (CSE:TTT) (OTCMKTS:TTTSF) shares were also on the rise Wednesday after the firm announced it is partnering with financial advisory and consulting firm Deloitte Touche Tohmatsu Limited to bring increased transparency to the retail cannabis industry.
Shares of TruTrace were up 2.2% at C$0.24 in Toronto, up 2.9% at US$0.18 in New York.
TruTrace’s StrainSecure system uses blockchain technology to trace cannabis from seed to sale, guaranteeing that customers and retailers alike know exactly what is changing hands. The strategic alliance with Deloitte will help bring that technology to a wider base of stakeholders.
READ: TruTrace partners with Deloitte to grow its StrainSecure retail cannabis verification technology
Shares of Tilray Inc (NASDAQ:TLRY) tumbled 6.2% on Wednesday to US$28.22, a day after Cowen & Co analyst Vivien Azer slashed her 12-month price target on the stock to C$60 from C$150. Azer also cut her price target on Cronos Group Inc (NASDAQ:CRON) to C$17 from C$21.
The reason? "Too few stores, supply shortages and a lack of novel products have hampered category development," noted Azer, however, making a point that she does believe the Canadian market will recover in the next year as issued are resolved and new products like edibles hit the market.
Shares of Tilray were down 6.7% at US$28.08, while Cronos stock losing 3.4% at US$10.92 in New York, off 3.7% at C$14.49 in Toronto.
The company runs the largest cannabis dispensary in the world in Las Vegas and reported its customer traffic for August on Wednesday. The firm announced that it served an average of 2,027 customers per day in August at an average ticket of US$90.25 at Planet 13's Las Vegas Cannabis Entertainment Complex.
The firm also recently reported second-quarter revenues of US$16.5 million last week, up 275% year-over-year. The firm posted a net loss of $1.0 million in 2Q, as compared to a net loss of $6.9 million in the year-ago period.
Also lagging Wednesday was Canopy Rivers Inc (OTCMKTS:CNPOF) (CVE:RIV) down 4.7% at C$2.24 in Canadian trading. The venture capital arm of Canopy Growth (NYSE:CGC) (TSE:WEED) reported its fiscal 1Q results last week, posting a net loss of nearly C$3 million, or C$0.02 per share, compared to C$6.6 million, or C$0.05 per share, in the same period a year ago.
– Harriet Mclelland contributed to this report –
Contact Katie Lewis at [email protected]