Green Growth Brands
Green Growth Brands (GGBXF) had an eventful week. The stock witnessed a sharp fall during the week. Aphria (APHA) rejected the company’s hostile bid to take over Aphria. However, Green Growth Brands still thinks that the combined entity could create more value for both companies’ shareholders.
Green Growth Brands stock bounced back and regained most of its losses. Green Growth Brands signed a licensing agreement with Authentic Brands Group and the Greg Norman brand. The agreement enables Green Growth Brands to develop a line of cannabidiol infused personal care products. Green Growth Brands will work with Tilray (TLRY). Green Growth Brands will be the key supplier of the CBD ingredients that will be used in these products.
Green Growth Brands signed two agreements in one month. Peter Horvath, Green Growth Brands’ CEO, said, “As part of our stated strategy, we will continue to offer the largest assortment of high-quality CBD-infused personal care products in the industry. This agreement allows us to work with a world-renowned athlete and entrepreneur in Greg Norman while partnering with Authentic Brands Group, who have been the visionaries behind some of the world’s most iconic and celebrated brands. We will also be taking advantage of the relationship between ABG and Tilray to ensure the safety and reliability of our new product line.”
Green Growth Brands fell 1.6% and closed at $4.33 for the week ending February 8. Despite the decline, the stock is trading marginally above the 20-day moving average price. The stock has gained 15.2% year-to-date. Green Growth Brands’ 14-day relative strength index of 57 indicates that the stock isn’t overbought or oversold.
Green Growth Brands outperformed the ETFMG Alternative Harvest ETF (MJ), which declined ~4.3% for the week ending February 8. The fund also provides exposure to GW Pharmaceuticals (GWPH) with a weight of ~6.0%.