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Buds & Duds: Cannabis stocks finish week in the red; Canaccord initiates coverage on Valens

Canaccord set a C$8 price target on The Valens Company stock

cannabis flower oil
Others on the move included Pharmacielo, Aphria and National Access Cannabis Corp

Cannabis stocks lost ground on Friday as most indices pulled back across North America.

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, was down 2.6% higher at 117.4 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF sank 2.1% at C$9.43, while the OTCQX Cannabis index fell 1.8% to 480.1 points.

Buds

Pharmacielo Ltd (CVE:PCLO) raced higher on Friday after it announced a new three-year pan-European distribution agreement with Quebec’s CBD Export Global.

The deal will see the company’s high-grade CBD isolate and CBD oil sold to wholesalers and medicinal consumer packaged goods manufacturers across the continent.

Shares of Pharmacielo were up 5% in Toronto at C$3.43 and 6% over the counter at US$2.65.

Extraction firm The Valens Company (CVE:VLNS) (OTCMKTS:VLNCF) also saw shares perk up in morning trading after research house Canaccord Genuity initiated coverage on the stock with a C$8 price target.

“We expect 2020 to be a transformational year with potential catalysts surrounding white label contracts, new product launches, positive FCF, and international expansion plans,” analysts wrote in a note.

Valens' shares traded around C$3.74 in Toronto and US$2.85 in New York.

Duds

Aphria Inc (TSE:APHA) (NYSE:APHA) made news on Friday with a C$100 million investment from an unidentified institutional investor.

Chief financial officer Carl Merton called the investment a “significant endorsement” of the Canadian company in tough market conditions.

Aphria’s shares, however, retreated 7.4% in Toronto at C$7.02 and 6.9% in New York at US$5.36.

National Access Cannabis Corp (CVE:META) (OTCMKTS:NACNF) suffered a 26% drop in Toronto, trading at C$0.20 after it said Echelon Wealth Partners Inc agreed to a C$10 million bought deal.

The firm said it plans to use net proceeds to expand its retail footprint in Ontario.

Shares also lost 24.4% over the counter at US$0.16.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

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