Cannabis stocks fell back to earth on Friday, but indices still finished the week higher.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, sank 4.4% at 123 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF lost 5.8% to C$9.55, while the OTCQX Cannabis retreated 4% at 478.2 points.
Next Green Wave Holdings Inc (CSE:NGW) (OTCMKTS:NXGWF) saw gains on Friday after the company announced a C$6.3 million financing for the cannabis company to accelerate distribution, branding and marketing initiatives throughout California.
The asset-backed financing, courtesy of Landrace Financial, is “extremely rare” given that Next Green Wave has US collateral, said CEO MIchael Jennings in a statement. “The fact that we were able to accomplish an asset-backed financing at our relatively early stage of existence is very encouraging and speaks to the lender's high confidence in the potential of our company.”
Shares of Next Green Wave grew 11.1% in Canada at C$0.15 by midmorning Friday.
Also nudging higher in Canada was Flower One Holdings Inc (CSE:FONE) (OTCMKTS:FLOOF), which rose 1.1% at C$0.96 on the CSE. The Toronto-based company, which is due to release its third-quarter results on Wednesday, is expected to post revenue of US$2.7 million, according to a Roth note on Friday.
The research firm labeled FONE a Buy and set a C$4 price target on the stock.
Most cannabis stocks were seeing red on Friday, so here’s an idea of how the big names were faring in morning trading.
Canopy Growth Corp (TSE:WEED) (NYSE:CGC) lost 8.1% in Toronto at C$24.83 and 9% in New York at US$18.47.
Curaleaf Holdings Inc (CSE:CURA) (OTCMKTS:CURLF) dropped 4.7% in Canada at C$8.23 and 4.8% over the counter at US$6.19.
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