logo-loader

Buds & Duds: Cannabis stocks off to slow start to the holidays; WeedMD rises on blockbuster acquisition

WeedMD revealed that it signed a deal with Starseed Holdings to create a vertically integrated medical cannabis company

woman holding marijuana plant
Also on the move was True Leaf, Indiva, Aphria and Khiron

Cannabis stocks were down across North American markets to start the month of December.

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, fell 1.8% to settle at 115.4 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF lost 2.1% at C$8.99, while the OTCQX Cannabis dropped 2.3% at 444.7 points.

Buds

After announcing a major new acquisition on Friday afternoon, WeedMD Inc (CVE:WMD) (OTCMKTS:WDDMF) shares kicked off the month in positive territory.

The Toronto-based company announced Friday that it signed a deal with Starseed Holdings Inc, a medically focused, federally licensed company that provides cannabis for insured patients through their benefit plans.

In addition, WeedMD is bringing on a key strategic investor in the Labourers’ Pension Fund of Central and Eastern Canada (LPF), which will inject C$25 million into the new medical cannabis company.

WeedMD’s stock jumped 13% in Toronto to C$1.05.

True Leaf Brands Inc (CSE:MJ) rocketed higher Monday after it reported a 70% growth in revenue compared to the previous quarter in its Pet division during its fiscal second-quarter 2020.

The cannabis for pets company recently launched CBD supplements for dogs and rolled out the products to retail stores in the US and online. Total revenue from True Leaf’s Pet division was C$707,000, a 24% increase year-over-year.

Shares of True Leaf rose 23.8% to C$0.13 on Monday morning.

Indiva Limited (CVE:NDVA) was also up 10% in Toronto and 3% over the counter at US$0.16 after it reported its third quarter financials that saw the company pull in nearly C$186,000 in revenue compared to nothing during the comparable year-ago quarter.

Duds

On the flip side, Aphria Inc (TSE:APHA) shares sank 2.5% in Toronto to C$6.13 and 2.4% in New York at US$4.63 after announcing that its subsidiary Aphria Diamond received a US$80 million three-year secured credit facility with a major Canadian-chartered bank.

Fire & Flower Holdings Corp (TSE:FAF) (OTCMKTS:FFLWF) was down 3.3% in Toronto at C$0.89 but 3% higher over the counter at US$0.68 on the news that it had received two additional cannabis retail store licenses for the province of Alberta.

Khiron Life Sciences Corp (CVE:KHRN) lost 2.1% in Canada at C$0.95 and 3.2% over the counter at US$0.72 after the resignation of its chairman.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of WeedMD Inc named herein, including the promotion by the Company of WeedMD Inc in any Content on the Site, the Company receives from said issuer...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Spectra7 Microsystems CEO says Tencent partnership 'critical milestone' for...

Spectra7 Microsystems Inc (OTCMKTS:SEV) CEO Raouf Halim sat down with Proactive’s Steve Darling at the 12th annual LD Micro Conference in California. The San Jose, California-based semiconductor company services electronics manufacturers in virtual reality, augmented reality, mixed reality, data...

12 hours, 6 minutes ago

2 min read