Marijuana stocks were steeped in red Friday as money-losing companies in the cannabis industry tried desperately to right the ship. Aurora Cannabis Inc (TSE:ACB) (NYSE:ACB) led the bloodbath after CEO Terry Booth resigned.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, lost 2.5% to 102.7 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF was down nearly 3% at C$8.48, while the OTCQX Cannabis index also tumbled by 3% to 424.3 points.
Aurora Cannabis revealed late Thursday that Booth is retiring amid “sweeping changes” for the Canadian licensed producer, the latest marijuana company to slash costs amid a looming cash crunch in the sector. Aurora outlined a “business transformation plan” in a statement which showed it has eliminated about 500 full-time staff positions, or roughly 17% to 18% of its workforce.
Aurora will have a hard time attracting the talent necessary to instill investor confidence, according to analysts.
Aurora stock plunged nearly 15.2% to US$1.70 in New York, while it tumbled nearly 16% to C$2.24 in Toronto.
Canopy Growth Corporation (TSE:WEED) (NYSE:CGC) failed to inspire optimism with its announcement that it will release results for the fiscal third-quarter 2020 period ended on December 31, 2019 before the opening bell on February 14.
Shares in Canopy fell 6.9% to US$19.72 in New York, while it tumbled 7.1% to CA$26.16 in Toronto.
GrowGeneration Corp (OTCMKTS:GRWG) received a boost from participating in the just-concluded Indo Expo Tradeshow, in Denver, Colorado.
The company’s stock was up nearly 7.2% to US$5.62.
GW Pharmaceuticals plc (NASDAQ:GWPH), which derives a lion's share of its revenue from its cannabinoid seizure drug Epidiolex, is having a good run in January thanks to encouraging preliminary fourth-quarter and full-year results. The big takeaway from the initial results were meteoric sales of Epidiolex. During its first full year of sales as a treatment for two rare but potentially deadly forms of childhood epilepsy, Epidiolex netted $296 million.
GW Pharmaceuticals stock was up 7% to US$126.58.
Contact the author Uttara Choudhury at [email protected]
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