Cannabis indices were a mixed bag on Monday across North American markets with a handful of marijuana stocks breaking out on positive news.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, was flat at 110.95 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF sank nearly 4.6% to $8.19, while the OTCQX Cannabis index gained 1.7% to 440.78 points.
Nextleaf Solutions Ltd (CSE:OILS) (OTCMKTS:OILFF) stock shot up as it closed out 2019 by obtaining its eleventh patent for its filtration stack used in post-extraction processing of THC and CBD oils.
The company has now been issued these patents by four international patent offices in the key markets of Canada, Australia, Colombia and the United States.
"Given the abundant supply of lower-grade dried cannabis, we believe processors that establish a competitive advantage by utilizing superior technology to transform otherwise unsellable biomass into high-purity THC and CBD oils at a lower cost than competitors, will generate better margins and build a sustainable long-term business," said Nextleaf Solutions CEO Paul Pedersen.
Nextleaf Solutions Ltd shot up 3.7% to US$0.24 in the OTC Markets, while it was up 3.3% to C$0.31 in Toronto.
Pyxus International (NYSE: PYX) stock climbed after it earlier announced that its subsidiary Figr Brands has entered Ontario’s cannabis market.
The company’s cannabis products are available for sale online through the province’s Ontario Cannabis Store, as well as at various retail locations.
“The entrance into Ontario marks yet another significant milestone for Figr as it continues to expand its footprint across Canada,” Pyxus CEO Pieter Sikkel said in a statement.
“Ontario is the most populated province in Canada with more than 14 million residents, all of whom now have the opportunity to purchase Figr’s high-quality, fully traceable cannabis products,” he added.
Pyxus International stock was up nearly 9% to $8.75.
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 3.2% at US$2.57 in the OTC Markets and it traded 2.5% higher to C$3.33 in Toronto.
Hexo Corp (TSE:HEXO) (NYSE:HEXO) continued to fall after the cannabis company announced its plans to sell nearly 15 million shares and issue warrants for investors to buy nearly 7.5 million shares.
The deal with institutional investors is to buy and resell 14.97 million common shares at US$1.67 per share. The offering is expected to close by Dec. 30.
Shares of Hexo were down 4.2% in Toronto at C$2.01 on Monday afternoon, and 4.6% to US$1.53 in New York.
Meanwhile, industry heavy weight Canopy Growth Corporation (TSE:WEED) (NYSE:CGC) continued its decline. The stock lost nearly 2% to trade at US$18.79 in the US, while it was down 2.31% to C$24.53 in Toronto.
Aurora Cannabis Inc (TSE:ACB) (NYSE:ACB) continued to slide in both the US and Canada markets with analyst concerns about profitability weighing on the stock.
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