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APHA, CTST, and CRON Continue to Weaken on May 1

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Sector performance

The cannabis sector has been trading broadly flat ahead of the first-quarter earnings season. The Horizons Marijuana Life Sciences ETF (HMMJ) was up slightly by 0.38%, while the ETFMJ Alternative Harvest ETF (MJ) was almost flat in the first half of the day on May 1.

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The underachievers

During the day, CannTrust (CTST) was one of the biggest losers, with its stock falling ~4.6% as of noon. The company announced its intention to raise an additional $200 million, which could have caused the weakness in its shares. KushCo Holdings (KSHB) was trading with a fall of 3%, and Supreme Cannabis (SPRWF) was down nearly 2.7% as of midday. Emerald Health (EMHTF) also exhibited weakness with a fall of 2.3%.

Aphria (APHA) was trading 2.4% lower as of around noon. The weakness in Aphria has extended since the company reported its earnings results. Its write-down of its Latin American assets was a wake-up call for investors to trade with caution in the cannabis sector.

Cronos Group (CRON) was also down 1%, while Aurora Cannabis (ACB) was down 0.7% as of around midday.

The gainers

In contrast to the above-mentioned stocks, the cannabis companies that were trading higher in the first half of the day included Innovative Industrial Properties (IIPR), which was up ~3%, and Slang Worldwide (SLNG), which was up 5.1% as of noon. Tilray (TLRY) was also up 1.4% in the first half of the day.

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