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Buds & Duds: Cannabis stocks slide; Tilray to cut 10% of workforce in effort to reach profitability

Another round of layoffs hit the cannabis sector yesterday

hands holding soil with cannabis plant
MediPharm and Bhang were up on the day

Cannabis stocks retreated across North America after Tuesday’s gains.

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, sank 1.3% at 107.2 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF lost 0.9% at C$8.95, while the OTCQX Cannabis index decreased by 1.1% to 444.8 points.

Buds

A few cannabis companies were in the green on Wednesday, but just barely.

MediPharm Labs Corp (TSE:LABS) (OTCMKTS:MEDIF) inched a couple of cents higher for a 0.7% gain in Canada to trade at C$2.86 and echoed those gains over the counter to trade at US$2.16. The firm was recently granted a license to import cannabis into Australia.

As for small caps, Bhang Inc (CSE:BHNG) (OTCMKTS:BHNGF) saw a two-cent gain, or 16.7%, after its subsidiary Red Ace Organics announced a partnership with US swimmers Ashley Twichell, Jacob Pebley and Tom Shields regarding the face of Red Ace’s natural beetroot drinks.

Bhang has a portfolio of over 100 cannabis, hemp-derived CBD and terpene products.

Shares of the firm were trading at C$0.18 on Wednesday afternoon, while its stock rose 9.2% over the counter at US$0.13.

Duds

Another round of layoffs hit the cannabis sector yesterday.

Tilray Inc (NASDAQ:TLRY) was down 1.1% at US$17.95 after it was reported by BNN Bloomberg that the Canadian cannabis company was planning to lay off 10% of its staff in an effort to reach profitability. The firm currently has a workforce of over 1,400 people around the world.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

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