Today, the US markets were trading higher on optimism over a breakthrough in trade talks between the US and China. At 2:15 PM EDT, the S&P 500 Index and the Dow Jones Industrial Average were up by 0.9% and 0.7%, respectively. However, the weakness in the cannabis sector continued today, with the cannabis ETFs trading in the red.
At 2:20 PM EDT, the ETFMG Alternative Harvest ETF (MJ) and the Horizons Marijuana Life Sciences Index ETF (HMMJ) were down by 1.0% and 0.4%, respectively. The cannabis stocks showed mixed performance today. Let’s take a look.
Cannabis stock MedMen continues to fall
Yesterday, MedMen Enterprises (MMNFF) (MMEN) announced that it terminated the Business Combination Agreement with PharmaCann. As part of the termination agreement, PharmaCann would transfer some of its licenses and assets in Illinois and Virginia to MedMen.
The announcement led MedMen stock to fall 13.5% yesterday. Today, the company’s stock continued to fall and was down 6.1% at 1:58 PM EDT. Year-to-date, the company has lost 48.6% through October 8.
Aleafia Health terminates supply agreement with Aphria
Yesterday, Aleafia ended Aphria’s (APHA) cannabis supply agreement with Emblem Cannabis, a wholly owned subsidiary of Aleafia. To learn more about this, please read Aphria-Aleafia Health Deal Axed: How Stocks Reacted.
The announcement pushed Aphria’s stock down 1.7% yesterday. Today, the company was up 1.3% at 2:06 PM EDT.
Aurora Cannabis launches a new product line
Aurora Cannabis (ACB), in partnership with CTT Pharmaceutical Holdings, launched cannabinoid-infused sublingual wafers yesterday. According to the company, it added a new product line to its medical offerings.
For more on this topic, please read Aurora Cannabis: New Product Launch with CTT Pharma. The announcement of a new product launch could have led Aurora’s stock to rise 0.4% yesterday. However, today, ACB stock was down by 0.5% at 2:06 PM EDT.
Year-to-date, Aurora has lost 18.6% of its stock value through October 8. You can read about Aurora’s growth initiatives in Aurora’s Growth Initiative Update Drives Its Stock.
TGOD’s stock tanks
The Green Organic Dutchman Holdings (TGOD) (TGODF) announced today that the company was reviewing several financial options to complete the construction of its facilities in Ontario and Quebec. The company previously announced that it was in talks with commercial banks.
However, TGOD stated that those financing arrangements had become nonviable due to changing market conditions. This announcement led TGOD stock to fall 20.2% at 2:07 PM EDT. Year-to-date, the company had lost 29.7% of its stock price through October 8.
For more on cannabis ETFs, please read Cannabis ETFs: Why Are They Less Risky?