Marijuana Stock Report: Canopy Growth Falls 6% In NYSE Debut
The North American Marijuana Index fell on Thursday, with pot stock investors expressing disappointment over the debut showing of Canopy Growth Corporation (TSX:WEED) (NYSE:CGC) on the New York Stock Exchange. Following a considerable runup throughout the early part of May leading up to the new listing, Canada’s most prominent Licensed Producer fell over six percent during its first day of trading on the U.S. exchange. Canopy ended the day at just over $28.00 per share.
As speculation abounded over Canopy’s poor showing on Thursday, with some in the market looking to short sellers and others seeing parallels to Cronos Group’s (NASDAQ:CRON) American debut, CEO Bruce ,Linton attempted to put a positive spin on the day’s events. Telling The Street he was “a little bit” disappointed, Linton nonetheless noted "there has been retail selling and institutional buying -- I like that. [And] we didn't go there for one day of trading."
Analysts continue to be mixed on what day two on the NYSE may hold for the company, with some predicting a quick turnaround, and others suggesting now is an excellent time to sell and buy back in at a lower price.
Meanwhile Wall Street tanked following the news that President Trump canceled a planned North Korean summit while simultaneously threatening tariffs on automobiles. The summit, which was supposed to take place in mid-June, had been on rocky ground from the start, with both sides indicating a willingness to pull out. President Trump, in a letter to North Korea’s Supreme Leader Kim Jong-Un, blamed the country’s "anger and open hostility" as the reason for canceling the summit.
The news sent the Dow Jones Industrial Average plummeting 75 points, as investors, to paraphrase one analyst, continue to waver with every piece of news coming across the wire.
"In other words, this has been a generally confusing period that has lacked an obvious single focus," Marketfield's Michael Shaoul told Barron’s. "This is probably overall a positive factor since although it would not be fair to dismiss the various negative forces at work in recent months, no one negative force has been able to drive markets consistently lower."
The S&P 500 fell 0.2 percent to 2727.76, while the Dow Jones Industrial Average dropped 75.05 points, or 0.3 percent, to 24,811.76. On the other hand, the Nasdaq stayed relatively stable at 7424.43.
The Horizons Marijuana Life Sciences Index ETF (HMMJ.TO) fell CAD$0.40 per share, or 2.18 percent to end the day at CAD$17.96, while the Evolve Marijuana ETF dipped CAD$0.47, or 2.63 percent to close out Thursday at CAD$17.38.
Khiron Life Sciences Goes Public On The TSX-V
Making a public move of their own today was Colombian cannabis company Khiron Life Sciences, who began publicly trading on the TSX-V under the symbol KHRN. In a historic move, Khiron is now the first fully-licensed medical cannabis producer from the country to be listed on any global exchange. The company has cultivation and production licenses for low- and high-THC that were awarded by the Ministry of Health and Social Protection and Ministry of Justice.
In an exclusive interview with CEO Alvaro Torres, PotNetwork asked what the move means for Khiron as both a cannabis company and a Latin American business. “For the company, it’s validation of everything we have done so far. From the beginning we have always aimed at going public on the TSX-V,” he noted
“I think of course it opens a lot of doors for new companies that want to do this,” Torres continued. “But it’s always good to be the first, and it’s always good to break new ground. But we feel as a company particularly proud to get to this milestone.”
*Check back next week for the full exclusive interview with Khiron Life Sciences CEO Alvaro Torres.
Newstrike Resources Ltd. (TSXV:HIP) announced a $40 million bought deal public offering… Organigram Holdings Inc. (TSX-V:OGI) (OTCQB:OGRMF) entered into a letter of intent with Hyasynth Biologicals, Inc… The Hydropothecary Corporation (TSXV:THCX) introduced a new brand for the recreational adult-use cannabis market called HEXO.
Comparing THC vs. CBD: What’s the Difference?
With the rise in popularity of CBD oil and the confusion over the benefits of this popular extract, The Visual Capitalist and Lexaria Bioscience Corp. (CSE:LXX) put together the following infographic discussing the differences between THC and CBD.
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