Today, CNBC reported that US retail sales fell 0.3% in September. The decline was the first in the last seven months, which appears to have made investors nervous. Today, at 1:32 PM EDT, the S&P 500 Index and the Dow Jones Industrial Average Index were down by 0.3% and 0.1%, respectively. After delivering a strong performance yesterday, the cannabis sector was trading in the red today.
At 1:33 PM EDT, the ETFMG Alternative Harvest ETF (MJ) and the Horizons Marijuana Life Sciences Index ETF (HMMJ) were down 0.7% and 1.1%, respectively. Also, marijuana stocks delivered mixed performance today.
Hexo launches new value brand
Today, HEXO (HEXO) launched Original Stash, a value cannabis brand. The company stated that it had priced the products closer to black-market prices. Through this brand, HEXO is hoping to move customers away from illegal products.
CEO Sebastien St-Louis noted, “Our aim with Original Stash is to disrupt the illicit market, educate consumers about the value of a regulated and tested product, and drive them to purchase their cannabis legally.”
At 1:18 PM EDT, the company’s stock price was flat. Year-to-date, the company has lost 28.5% of its stock value. To learn more about HEXO’s stock decline, please read HEXO: The Next Cannabis Player on the Scandal Radar?
APHA trades in the red
Despite its impressive first-quarter performance, Cormark, Eight Capital, and CIBC lowered their price targets for the stock. Cormark cut its price target from 14 Canadian dollars to 8 Canadian dollars. Eight Capital lowered its price target from 11 Canadian dollars to 9 Canadian dollars. CIBC reduced its price target from 7.0 Canadian dollars to 6.5 Canadian dollars.
The lowering of these price targets by analysts appear to have dragged the company’s stock price down. At 1:20 PM EDT, Aphria stock was trading 7.4% lower from its previous day’s closing price. Please read Aphria: Valuation Update after Its Q1 Earnings, to learn more about its valuation.
Cresco Labs receives adult-use cannabis licenses
Today, Cresco Labs (CRLBF) (CL) announced that it received licenses to sell adult-use cannabis from its existing five medical cannabis dispensaries in Illinois. On September 30, the company had received the approval for adult-use cannabis cultivation.
This announcement appears to have increased investors’ confidence. Despite the weakness in the cannabis sector, the company was trading 1.6% higher at 1:10 PM EDT. Year-to-date, the company’s stock has declined by 10.2% as of October 15.
Cronos Group announces separate IPO for Cronos Australia
Today, Cronos Group (CRON) announced that it would issue a separate IPO for Cronos Australia, which is a joint venture between Cronos Group and NewSouthern Capital. The company plans to issues 40 million new shares at 0.50 Australian dollars per share. Also, it intends to list the shares on the Australian Securities Exchange in November. The announcement appears to have led Cronos stock to rise 1.1% at 1:21 PM EDT today.
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