Cannabis sector weakens
On May 2, the overall sentiment surrounding the cannabis sector appeared to be negative, with sector ETFs such as the ETFMG Alternative Harvest ETF (MJ) falling by as much as 3.3% and the Horizons Marijuana Life Sciences ETF (HMMJ) down 3.3% as of 12:00 PM EDT.
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Cannabis stocks in the red
CannTrust was one of the biggest losers today with a fall of nearly 12% after it announced the pricing of its public offering of common shares at a deep discount to yesterday’s closing price. The announcement signaled that the company believed its stock to be overpriced.
Other stocks that took hits included Canopy Growth (WEED) (CGC), which fell 6%, and Aphria (APHA), which was down ~5% as of around noon. Cronos Group (CRON) also continued its decline, losing 4%, while Slang Worldwide (SLNG) fell 5.5% in the first half of the trading session on May 2.
Aurora Cannabis (ACB), which is set to announce its earnings next week, was also trading lower in the first half of the day with a fall of ~4.5%. Read Aurora Cannabis: What to Expect from Its Earnings for more information.
Other losers in the market include Innovative Industrial Properties (IIPR), which was down ~1.1%, and KushCo Holdings (KSHB), which was down ~2.9% as of around midday. With earnings season in full swing, investors might want to wait and see where the cannabis sector is headed.