Cannabis Stock Report: Pot Stocks Tumble As Trade War Worries Increase

The North American Marijuana Index fell on Wednesday, losing over eight points, or three percent, following the resignation of top White House economic advisor Gary Cohn amid investor worry of a possible trade war. It was a swift reversal for the Index, as pot stocks saw marked increases throughout the week despite President Trump’s harsh rhetoric about import tariffs. Cohn’s resignation left investors panicked over the future of U.S. trade policy and sent both cannabis stocks, and the broader markets tumbling on Thursday.

The United States Marijuana Index lost 0.38 points, or 0.46 percent to close the day at 82.14. Meanwhile, the Canadian Index shot down 35.06 points, a decline 4.50 percent ending the day at 743.78.

Wall Street was left reeling on Thursday from the news of Cohn’s resignation, although word of exemptions from Trump’s proposed tariffs for Canada and Mexico seemed to ease investor tensions as the day wore on. The Dow Jones Industrial Average dropped 82.76 points, or 0.33 percent, closing the day at 24,801.36, while the S&P 500 lost 1.32 0.05 percent and the Nasdaq Composite gained 0.33 percent.

"It makes investors less worried if the tariff isn't applied so broadly. But it's speculation at this point. We have nothing in writing. If there's one thing we've learned from this administration it's that it could change by the time it's in writing," remarked Janna Sampson, co-chief investment officer at OakBrook Investments LLC in an interview with Reuters.

Horizons Marijuana Life Sciences ETF (HMMJ.TO) fell CAD$0.52 per share, a decline of 2.62 percent to close out Wednesday at CAD$19.29. The Evolve Marijuana ETF (SEED) dropped  CAD$0.84 per share, or 4.04 percent to close out the day at CAD$19.96.

Winners and Losers

CLS Holdings USA, Inc. (OTC:CLSH) rose 7.69 percent on lower than average trading volume, closing the day at $0.70 per share… Golden Leaf Holdings Ltd. (CSE:GLH) (OTC:GLDFF) climbed 6.0833 percent on lower than average trading volume, ending the day at $0.2546 per share… SinglePoint, Inc. (OTC:SING) jumped 14.43 percent on lower than average trading volume, closing the day at $0.0698 per share

InMed Pharmaceuticals, Inc. (CSE:IN) (OTC:IMLFF) dropped 21.54 percent Wednesday on higher than average trading volume, closing the day at $1.14 per share… MariMed Inc. (OTC:MRMD) fell 6.67 percent today on lower than average trading volume, closing the day at $1.12 per share… Newstrike Resources Ltd. (TSXV:HIP) (OTC:NWKRF) took a hit on Wednesday, falling 10.11 percent on lower than average trading volume to end the day at $0.8272 per share.

Aurora Cannabis Wins Support For CanniMed Takeover

Bloomberg reports that Aurora Cannabis Inc. (TSX:ACB) has won the support needed to acquire CanniMed Therapeutics Inc. (TSX:CMED), ending a months-long saga that saw the two companies end up in front of Canada’s regulatory commissions. According to the report, it will be the largest takeover in the short history of the marijuana industry.

The deal, which was agreed to in January, has Aurora paying CAD$1.23 billion (US$950 million) for the rights to CanniMed Therapeutics. “We are still satisfying material conditions of the transaction and we have an outside date of March 9 and we are going to beat that,” said Aurora spokesman Cam Battley.

According to Bloomberg, CanniMed representatives could not be reached for comment.

Marijuana Stock Guru Sued By SEC for Fraud

The SEC sued Denver businessman Jeffrey O. Friedland for fraud on Monday, claiming the self-proclaimed marijuana stock guru dumped 6.4 million shares of a certain penny stock for $7 million while promoting it to investors.

According to Business Den, Friedland shilled for Israeli cannabis company OWC Pharmaceutical Research Corp. while dumping millions of his own weed shares back into the market, a violation of SEC rules.

“Between February 2016 and August 2017, however, Friedland sent emails and participated in interviews on OWC’s behalf without ever disclosing that he had been hired by OWC to handle its media and investor relations and had been paid to do so with millions of shares of OWC stock,” the lawsuit says, according to Business Den.

The SEC’s lawsuit requests that Friedland return all of the money he received and be barred from trading penny stocks by the court.

Quick Hits

Namaste Technologies Inc. (CSE:N) (OTCMKTS:NXTTF) saw February revenue increased 146 percent year-over-year… Stony Hill Corp. (OTCQB:STNY) announced plans to change its name to Applied BioSciences Corp… Future Farm Technologies Inc. (CSE:FFT) (OTCQX:FFRMF) Puerto Rico subsidiary signed leases for its Clinica Verde branded Puerto Rico dispensaries.

Add comment