Cannabis Stocks Up, Broader Equity Market Falls

Today, cannabis stocks are trading in the green despite the weakness in the broader equity market. The ETFMG Alternative Harvest ETF (MJ) was up 2.5% as of 2:00 PM ET, while the Horizons Marijuana Life Sciences Index ETF (HMMJ) was up 3.1% as of 1:45 PM ET. However, the S&P 500 Index, which had a strong run on December 6, was down 0.1% at 2:00 PM ET. Let’s look at the cannabis stocks that are making the news today.

Today, Canopy Growth (CGC) (WEED) announced David Klein as its new CEO. Klein is currently serving as executive vice president and CFO at Constellation Brands. He’s served Constellation Brands in various capacities for the last 14 years, and he’ll take charge on January 14. The announcement appears to have made investors excited. Today, at 1:45 PM ET, Canopy Growth was up 13.1%. Being the prominent player in the space, the company appears to have driven the entire cannabis sector up today. Last week, it introduced its CBD products in the US market under the brand First & Free. For more info, read What’s Canopy Growth’s First & Free Brand About?

Cresco Labs (CRBLF) (CL) announced that it had harvested its first crop from its expanded cultivation facility in Lincoln, Illinois. Earlier, the company had three cultivation facilities spanning 35,000 square feet in the state. However, the company decided to expand its facilities to approximately 243,000 square feet by the end of this year.

At Lincoln, the company has expanded to 224,000 square feet of cultivation facility, with 140,000 square feet of indoor and greenhouse cultivation space. The company has permission to expand its three facilities to 630,000 square feet. Cresco Labs’ announcement appears to have led its stock price to rise 7.1% as of 1:45 PM ET.

Today, HEXO (HEXO) was trading 5.4% higher at 1:43 PM ET. On December 6, the company announced that it had completed the private placement of unsecured convertible debentures. It had issued unsecured convertible debentures worth 70 million Canadian dollars with a maturity date of December 5, 2022. HEXO plans to utilize the proceeds for working capital and general corporate purposes. This year has been tough for the company. As of December 6, its stock had lost 40.8% of its value. The abrupt resignation of its CFO, the withdrawal of its fiscal 2020 guidance, and the weakness in the marijuana sector could have caused the company’s stock to fall.

Today, Aphria (APHA) was trading 8.4% higher as of 1:46 PM ET. The strengthening of the cannabis sector appears to have led the company’s stock price to rise. It reported impressive performances in the fourth quarter of fiscal 2019 and the first quarter of fiscal 2020. Despite its strong performances in the last two quarters, it’s lost 20.8% of its stock value this year as of December 6. The weakness in the marijuana space appears to have dragged it down. For a look at analysts’ recommendations on the stock, read Aphria: Update on Analysts’ Target Prices and Ratings.

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