Cannabis News Driving CURLF, IIPR, GTII, HEXO Today

Rajiv  Nanjapla - Author

Oct. 31 2019, Published 3:41 p.m. ET

Today, citing Bloomberg, CNBC reported that Chinese officials aren’t confident of sealing a long-term trade agreement with the US. The announcement appears to have led US markets to fall. At 2:00 PM ET, the S&P 500 and the Dow Jones Industrial Average were down by 0.5% and 0.8%, respectively. The cannabis sector was also trading in the red today. At 2:00 PM, the ETFMG Alternative Harvest ETF (MJ) and Horizons Marijuana Life Sciences Index ETF (HMMJ) were down by 0.7% and 0.5%, respectively.

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Curaleaf acquires Acres Cannabis assets

Today, Curaleaf Holdings (CURA) (CURLF) completed its previously announced acquisition of cultivation and processing facilities of Acres Cannabis. Located in Amargosa Valley, Nevada, these assets include 269,000 square feet of cultivation facilities and 3,200 square feet of processing facilities. The company expects these acquisitions to boost its cultivation and processing capacity in Nevada.

Today, the company was trading in the red. At 1:38 PM ET, its stock was trading 5.1% lower than yesterday’s closing price. Weakness in the cannabis sector appears to be behind the company’s stock price decline.

IIPR was up over 5%

Yesterday, Innovative Industrial Properties (IIPR) announced it had bought 70,000 square feet of industrial space in Litchfield, Illinois, from a subsidiary of GR Companies for $10.5 million. The company has leased back the property to GR Companies. GR is also planning to sell an additional 50,000 square feet of the property for $17.7 million, bringing the transaction’s total value to $28.2 million. IIPR’s stock rose after the announcement. At 2:00 PM ET today, IIPR was trading 5.8% higher. Year-to-date, the stock had returned 60% as of yesterday.

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GTI appoints interim chief legal and compliance officer

Today, Green Thumb Industries (GTII) (GTBIF) announced that general counsel Matt Miller had resigned yesterday. The company added that it had appointed Beth Burk as an interim chief legal and compliance officer. Its stock was trading 3.8% lower today at 1:36 PM ET but had returned 2.0% this year as of yesterday.

HEXO fell more than 4%

Today, HEXO (HEXO) was 4.7% down at 1:45 PM ET. Cantech Letter reported yesterday that GMP Securities had lowered HEXO’s price target from 4.00 Canadian dollars to 3.00 Canadian dollars while maintaining its “hold” rating. In a research note, GMP analyst Robert Fagan wrote that the company’s EBITDA loss of 26 million Canadian dollars in the fourth quarter was significantly larger than he and other analysts had expected.

As of yesterday, the stock had fallen 43.2% this month. The company’s CFO’s abrupt resignation, withdrawal of its fiscal 2020 guidance, and weak fourth-quarter performance appear to have led to its stock decline. For more marijuana news, follow 420 Investor Daily.


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