Cannabis Stocks Up despite Weak Equity Market

Despite the weakness in the broader US equity market today, the cannabis sector is trading in the green. As reported by CNBC, President Donald Trump stated that it would be better to strike a trade with China after the 2020 presidential election. The announcement led the broader US equity market to fall.

At 12:26 PM ET, the S&P 500 Index was trading 1.0% lower. However, the ETFMG Alternative Harvest ETF (MJ) was up 0.1% at 12:26 PM, while the Horizons Marijuana Life Sciences Index ETF (HMMJ) was up 1.4% at 12:03 PM ET. Let’s look at the cannabis stocks that are making big moves today.

Aurora Cannabis is up over 2%

Yesterday, Aurora Cannabis (ACB) announced that Ireland had approved its High CBD Oil Drops under the new MCPA (Medical Cannabis Access Programme). The MCPA became law in June. With this approval, Aurora’s product can be prescribed, imported, and supplied. The announcement may have increased investors’ confidence, as the stock was trading in the green. At 12:13 PM ET, ACB was trading 2.5% higher. However, the stock has lost 52.5% of its stock value this year as of yesterday.

Aphria trades in the green

Aphria (APHA) announced yesterday that its subsidiary Aphria Diamond had secured a loan of 80 million Canadian dollars from a major Canadian chartered bank. The company is upscaling its operations since it received the license for the Aphria Diamond facility from Health Canada on November 1. Aphria expects automation and scale to lower the cost of production at the facility. Aphria expects to sell its first harvest from the facility in March 2020. Today, Aphria was trading 1.6% higher at 12:13 PM ET.

Curaleaf expands its footprint in Florida

Yesterday, Curaleaf Holdings (CURA) (CURLF) opened its 28th dispensary in Florida at Sarasota, which spans 3,900 square feet. The new dispensary is the company’s 51st dispensary in the US. The company is planning to conduct weekly seminars on cannabidiol for physicians and patients in Sarasota. It’s also announced that it will help patients register with Florida’s Department of Health. However, today, the company was down 1.4% at 12:07 PM ET. It reported an impressive third-quarter performance on November 19. For our analysis, read Curaleaf Impressed with Strong Q3 2019 Earnings.

Cresco Labs to sell subordinate voting shares

Today, Cresco Labs (CL) (CRLBF) announced an equity distribution agreement with Canaccord Genuity. According to the agreement, Cresco will sell its subordinate voting shares worth 55 million Canadian dollars through Canaccord Genuity. Cresco plans to utilize the capital raised from stock sales to fund its current operations and repay debt. Today, the stock was trading 5.2% lower at 12:05 PM ET. Investors’ fear over the dilution appears to have caused the company’s stock to fall. Recently, analysts lowered their price targets following Cresco’s weak third-quarter performance. For a look at analysts’ ratings, read Cresco Labs: Analysts’ Ratings Post Q3 Earnings.

Check out 420 Investor Daily for more cannabis-related news and updates.