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Buds & Duds: Cannabis stocks fall sharply; XPhyto and PharmaCielo strike German supply deal

Every big-name cannabis company was in the red despite no new news.

german flag cannabis
XPhyto and PharmaCielo will distribute a range of extracts across Germany

Cannabis stocks fell sharply on Monday across North American markets.

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, was down 4.2% at 110.9 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF sank 2.5% at C$.91, while the OTCQX Cannabis index fell 5.6% to 444.6 points.

Duds

Every big-name cannabis company was in the red despite no new news.

Of the companies with announcements, TerrAscend Corp (CSE:TER) sank 3.5% in Canada and 3.3% over the counter after it told investors it has terminated its previously announced acquisition of Gravitas Nevada Ltd, a vertically integrated cannabis business in Nevada.

The Toronto-based company paid a C$3 million reverse termination fee to the sellers, which had been placed in escrow in June 2019.

Shares of TerrAscend traded at US$2.08 and C$2.77 on Monday morning.

Tetra Bio-Pharma Inc (CVE:TBP) was also down 4% in Canada to C$0.48 after it announced an upsizing of a previously disclosed offering of C$15.5 million. The company said gross proceeds will now come to around C$17.9 million.

The firm also sank 6% over the counter, trading at US$0.36.

Buds

A handful of companies were trading higher in the morning.

PharmaCielo Ltd (CVE:PCLO) was up 2.9% in Canada and 1.8% over the counter after it announced a deal with Canada’s XPhyto Therapeutics Corp (CSE:XPHY) to distribute a range of extracts in Germany.

Exports are planned to commence in mid-2020 following completion of necessary product range regulatory protocols, the firm said in a release, and minimum total volume under the agreement is approximately 30,000 kg over the three-year period.

Also inching higher was Codebase Ventures Inc (CSE:CODE), which rose 20% at C$0.03 after announcing its subsidiary Titan Shrooms & Psychedelics Inc’s investment in the Netherland’s Red Light Holland Corp.

"Titan's initial investment is the first step in building a portfolio to give our shareholders a front-row seat to the mushrooms and psychedelics sector as it builds significant momentum,” director Brian Keane said in a statement.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

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