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Buds & Duds: Cannabis stocks on upswing; CB2 Insights, KushCo report strong results

Cannabis analytics company CB2 Insights posted record third-quarter revenue of C$4.2 million, a 29% increase from the previous quarter

money cannabis
Also making moves on Friday were Harborside, CannTrust, Biome Grow

Cannabis stocks headed into the weekend on an upswing across North America, capping off a week of big moves.

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada gained 1.4% at 127.3 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF inched 0.9% higher to C$10.30, while the OTCQX Cannabis Index was up 0.6% to 453 points.

Buds

CB2 Insights Inc (CSE:CBII) (OTCMKTS:CBIIF) revealed Friday that it posted record third-quarter revenue of C$4.2 million, a 29% increase from the previous quarter.

Investors responded to the news, with shares rising 5% to C$0.11 in Canada.

CB2, based in Mississauga, Ontario, noted that its upbeat quarter was achieved due to the fact that during the first nine months of 2019, it made successful strategic acquisitions of Relaxed Clarity, MedEval Clinics LLC and New Jersey Alternative Medicine (now operating as Canna Care Docs New Jersey).

Also reporting was KushCo Holdings Inc (OTCMKTS:KSHB), which saw its revenue increase 135% year-over-year to US$47 million but posted a loss of US$11.5 million compared to $3.2 million in the year-ago quarter.

That being said, analyst Scott Fortune at Roth Capital Partners wrote in a Friday note that he is “optimistic” on KushCo’s prospects, with strong current operations and new business opportunities that could continue to propel revenue growth.

Shares of KushCo were up 11% on the OTC Markets at US$1.82.

Biome Grow Inc (CSE:BIO) (OTCMKTS:BIOIF) also saw its shares rise 2% in Canada after Thirsday's announcement that its Highland Grow products were approved for sale in the Canadian province of Prince Edward Island.

Duds

A collection of pot stocks lost ground on Friday on no new news.

Harborside Inc (CSE:HBOR) (OTCMKTS:HSDEF) sank 9.8% in Canada and 8.7% on the OTC Markets to trade at C$1.20 and US$0.91 respectively.

On Toronto’s big board, CannTrust Holdings Inc (TSE:TRST) (NYSE:CTST) slipped 2.5% to C$1.37 and eased 0.5% in New York to trade at US$1.02 by midmorning Friday.

Over on the TSX Venture Exchange, James E Wagner Cultivation Corporation (CVE:JWCA) (OTCMKTS:JWCAF) dropped 6.5% to C$0.36 and slipped 4.3% on the OTC Markets to US$0.28, days after it closed a C$4 million loan agreement.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

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