Though last week many stocks followed a downward trajectory on the U.S. stock market, weed stocks in the U.S. and Canada performed with more positive outcomes by the close of the week. Eight of thirteen leading marijuana stocks companies in U.S. exchanges ended the week with gains between 2.15% (CannTrust Holdings Inc) and 48.4% (Cronos Group Inc).
In the interest of those seeking marijuana stocks to buy, review these announcements made over the past week regarding strategic movement within the marijuana industry.
First off, one of the more substantial private equity investment funds within the marijuana industry, Phyto Partners, announced a new venture capital fund allocated for investment in privately owned marijuana companies. The fund (Phyto II, LP) consists of $100 million, which Phyto’s Managing Partner said “will focus on companies that enable licensed operators, the growers and dispensaries, to operate compliant and successful businesses. These ancillary businesses will benefit greatly from the growth of the industry and the billions of dollars that have been raised by the licensed operators.” This is also good news for marijuana stocks investors as they follow the investments in these beneficiary companies.
When choosing marijuana stocks to invest in, Alliance One International also makes the list for promising recent reports.
Next, shares for a tobacco company, Alliance One International, Inc saw more than 22% in gains last Friday following the company’s revelation of investments in several marijuana and hemp companies in both the U.S. and Canada.
“One thing you can always count on in the cannabis space is a good surprise, and we got one this week, with Alliance One International announcing the acquisition of controlling stakes in Canada’s Island Garden, a licensed producer that is generating revenue, and another ACMPR applicant, Goldleaf Pharm,” said analyst Alan Brochstein.
Brochstein also expressed excitement in Alliance One’s 40-stake acquisition of an American hemp-based CBD company, which he believes could be “a precursor for more of these cross-border deals,” in reference to U.S. investments in Canadian companies. It also marks further development in cross-industry dealings, in this case tobacco and marijuana.
(For more information on recent cross-industry dealings, read Buying into Booze Top Cannabis Stock Aurora Closes Deal with Big Liquor.)
In related news, The Canadian Securities Administrators (CSA) announced its decision to maintain current policy which requires Canadian marijuana stocks companies to disclose cannabis operations within the U.S.
Brochstein’s explanation of this decision was that “After the rescission of the Cole Memo, they announced a policy review, and it was possible that these companies might have had to exit their CSE listings and use their OTC listings alone.”
(To read more on the rescinded Cole Memo, check out Growth Gains: Marijuana in North America.)
Weed stocks Canada hosts champions in the marijuana industry worth considering as one researches marijuana stocks to buy.
On the company earnings front, Aurora Cannabis’ reported revenues for the second quarter of this fiscal year revealing the company had more than tripled sales from 2017, with revenues of $11.7 million. Together, with $6.9 million in gross profits, the company is up 374% in a year period. Aurora largely attributed these results to their strong exports to Germany and sales within the country.
Cronos Group, leading the industry in marijuana stock gains for the week, announced the launch of an Australian venture. Cronos plans to invest in a 50/50 partnership with Australian company, NewSouthern Capital Pty Ltd. The launch of Cronos Australia will serve not only Australia, but, New Zealand and Southeast Asia, strengthening the company’s capabilities for supplying imports and exports along with their network for distribution.
Marijuana stocks news about GW Pharmaceuticals for the week was a double-edged sword.
While the company is also performing with more than tripled first quarter revenues ($7.7 million) and growing sales, it is still experiencing great net losses – currently, $63.3 million.
Last of the notable news announcement relevant to marijuana stocks, Canopy Growth sold 5.8 million company shares at $34.60 each, which was part of a $200 million deal.
The date of the next “Blunt Talk” hosted by Paragon was announced and will be held on February 13 at the headquarters of CanopyBoulder. An impressive lineup of speakers will be presenting, including Tyler Tarr (Sensi Magazine), Kelly Perez (CEO, kindColorado), Courtney Mathis (President, kindColorado), Brendan Patrick Gillis (CEO, Vaporslide), Brittany Centifanto (GM, Roots Rx Facilities) and Andrew Warren (involved with Paragon, Smokus Focus and HRVST Labs).