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Buds & Duds: Cannabis stocks slide on vape sales halt and executive shakeups

Hill Street Beverage and The Valens Corp both saw shares in the green on Monday

cannabis vape pen
Alberta joined a growing list of jurisdictions halting vape product sales

Cannabis stocks slid on Monday as another Canadian province put a stop to cannabis vape sales due to health concerns. 

Alberta joined a list of jurisdictions across North America to suspend vape sales in its province, citing recent reports about the health effects of vaping, according to a BNN Bloomberg report Monday. 

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, was down 1% at 110.9 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF sank 2% at C$8.79, while the OTCQX Cannabis index lost 1.1% to 413.1 points. 

Buds 

Hill Street Beverage Company Inc (CVE:BEER) (OCTMKTS:HSEEF), which is preparing to launch a line of cannabis-infused drinks in 2020, was up 25% on Monday after it said its new alcohol-free Entertainer’s Pack was seeing orders triple during the holiday season. 

“With cannabis being more widely consumed, consumers are increasingly seeking ways to enjoy these new social intoxicants without consuming alcohol and risking overconsumption or unpredictable outcomes,” Hill Street CEO Donnelly said in a statement. 

Shares of Hill Street rose to C$0.06 in Canada and was up nearly 40% over the counter at US$0.04 on Monday morning. 

Elsewhere, the recently rebranded The Valens Company (CVE:VLNS) (OTCMKTS:VLNCF) rose on two new extraction and supply deals announced Monday. 

The first deal with cannabis producer Emerald Health Therapeutics Inc (CVE:EMH) will see Valens process cannabis and hemp biomass into resins and distillates. Under a separate agreement, Valens will supply edibles producer Dynaleo with distillate to use in the production of CBD ingestible products. 

Shares of Valens were up 1.3% at C$3.06 and traded at US$2.30 over the counter. 

Duds 

Aurora Cannabis Inc (TSE:ACB) (NYSE:ACB) said Monday that its chief corporate officer Cam Battley is stepping down, causing MKM’s Bill Kirk to reiterate a Sell rating on the stock and lowering his price target to C$2 from C$3. 

The move is the third major management reshuffle in the industry this year, including the high profile ouster of Canopy Growth Corp’s co-founder and CEO Bruce Linton and Aphria Inc’s former CEO Vic Neufeld. 

Aurora’s shares, which have lost 55% of its value in 2019, slid an additional 7% in Canada at C$2.75 and 7.6% in the US at US$2.08. 

Contact Angela at [email protected] 

Follow her on Twitter @AHarmantas 

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