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Buds & Duds: Cannabis stocks continue to slump despite landmark US ruling; WeedMD rises after closing C$13 million financing

On Wednesday evening, the US House of Representatives passed the long-awaited SAFE Banking Act that frees up American banks to service cannabis companies

pot leaf stocks
Also on the move were Chemesis, Harvest Health & Recreation and Ionic Brands

Cannabis stocks kept up their decline on Thursday, a day after the US House of Representatives passed the long-awaited SAFE Banking Act that frees up American banks to service cannabis companies.

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, lost 1.7% to 154.1 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF was also down 1.2% to C$12.92, while the OTCQX Cannabis Index dropped 3.3% to 564.5 points.

Buds

WeedMD Inc (CVE:WMD) (OTCMKTS:WDDMF) shares were on the move after the company said it has closed its previously announced convertible debenture offering, netting more than C$13.1 million in proceeds.

The medical marijuana company said it plans to use the proceeds to buy new equipment, retrofit its Aylmer Facility and build an outdoor processing facility at its Strathroy operations, among other things.

Investors sent WeedMD’s shares 5.3% higher in Canada to C$1.40 and 7.9% higher on OTC markets to US$1.06.

Chemesis International Inc (CSE:CSI) (OTC:CADMF) also saw  shares rise on Thursday after it announced that its subsidiary Natural Ventures has inked an exclusive offtake agreement with HempRico LLC.

In a statement, the company said HempRico has received a hemp cultivation license in Puerto Rico and will begin planting a “high-potency” hemp crop.

Shares rose 5.8% in Canada at C$0.91 and 1.3% on OTC markets to trade at US$0.66.

Another stock on the move was Harvest Health & Recreation Inc (CSE:HARV), which jumped 4.6% at C$4.98 after it announced an exclusive partnership with Last Prisoner, a new non-profit organization committed to making sure that every cannabis prisoner is released, welcomed home and supported by their community.

Duds

KushCo Holdings Inc (OTCMKTS:KSHB) sank 36.4% on Thursday on the news that it had agreed with investors to purchase and sell over 17 million units to raise nearly US$30 million.

Instagram star Dan Bilzerian-based Ignite International Brands Ltd (CSE:BILZ) (OTCMKTS:BILZF) fell 14.5% in Canada after announcing it had hired two new executives to join the North American cannabis business.

Ionic Brands Corp (CSE: IONC) (OTC:MKTS:IONKF) also fell nearly 17% in Canada but was 5.7% higher on OTC markets after the vape pen manufacturer put out a statement addressing product safety concerns.

Contact Angela at angela@proactiveinvestors.com

Follow her on Twitter @AHarmantas

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