The downward momentum in cannabis stocks has continued today, marking the third straight day of decline for the cannabis sector. At 1:01 PM, the ETFMG Alternative Harvest ETF (MJ) was trading 1.4% lower, while the Horizons Marijuana Life Sciences Index ETF (HMMJ) was down by 2.9% at 12:39 PM ET. The broader equity market was also in the red due to mounting tensions between the US and Iran. Let’s look at the cannabis stocks that are in the news today.
Curaleaf wins medical license
Today, Curaleaf Holdings (CURLF) announced that the Utah Department of Health had awarded it a medical cannabis retail license. The public health agency had granted 14 licenses to open medical cannabis dispensaries in the state, and it received 130 applications from 60 companies. Curaleaf plans to open the dispensary in Lindon, Utah, later this year after receiving approval from regulators. Despite this positive news, the company’s stock was down 1.8% at 12:43 PM ET. The weakness in the sector could have dragged the stock down.
Canopy Growth to open five more Tokyo Smoke stores
In November last year, Canopy Growth (CGC) announced that it was working with five license holders to open Tokyo Smoke–branded cannabis stores in Ontario. Today, the company announced that it’s added five more license holders and plans to open ten Tokyo Smoke stores in Ontario this year. Of these five new stores, two will come up in Toronto.
The remaining three stores will be in Hamilton, Stoney Creek, and Ottawa. Once these stores are licensed, there will be 12 Tokyo Smoke stores in the province. The license holder will own and operate the store, while Canopy Growth will provide the necessary support. Today, at 12:49 PM ET, CGC was trading 0.2% higher. Since the beginning of 2019, it’s lost 29.4% of its value as of January 3.
Supreme Cannabis announces a leadership change
Today, Supreme Cannabis (FIRE) announced that Navdeep Dhaliwal had stepped down as its CEO with immediate effect. The company’s board has appointed board member and former president of Starbucks Coffee Canada Colin Moore as interim president and CEO. It added that it would appoint a search company to identify a new CEO to drive the company to profitability. Today, at 12:49 PM ET, the company was down 3.2%.
CannTrust Holdings trades over 14% higher
Today, CannTrust Holdings (TRST) was up 14.3% as of 12:50 PM ET. Since the beginning of 2019, the company has lost 78.7% of its stock value as of January 3. Due to a series of noncompliance issues, Health Canada suspended its cultivation license in September 2019. These issues, along with the weakness in the cannabis sector, may have dragged the company’s stock down. However, judging by its recent rise, investors must think the stock has moved into oversold territory.
Organigram to announce its earnings on January 14
On January 3, Organigram Holdings (OGI) announced that it would announce its fiscal 2020 first-quarter earnings results on January 14. The company’s first quarter ended on November 30, 2019. Today, it was trading 4.8% lower as of 12:49 PM ET. It reported its fourth-quarter earnings results on November 25. Read OrganiGram: Key Takeaways from Its Q4 Earnings to learn about its performance in the quarter.
Since it reported its fourth-quarter earnings, Organigram has lost 13% of its stock value as of January 3. Stay tuned for our first-quarter earnings preview. Also, be sure to visit 420 Investor Daily for more cannabis-related news and updates.