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Cannabis Watch: Cannabis Stocks Mixed With Aleafia Falling After Earnings Canopy Updates On NYC Hemp Plans

Cannabis stocks were mixed on Monday, with Aleafia Health losing ground after reporting earnings for 2018 and Organigram gaining on the news it has applied for a listing on Nasdaq.

Aleafia Health U.S.-listed shares ALEF, -3.12% ALEAF, -3.36%  fell 4.2%, after the company said its loss widened in 2018 from the year earlier. The medical cannabis company had a loss of C$18.5 million ($13.7 million), or 16 cents a share, in the year, after a loss of C$9.69 million, or loss of 24 cents a share, in 2017. Revenue rose to C$3.3 million from just C$15,766 in the year-earlier period.

The company sold C$629,146 worth of cannabis in 2018; the remaining revenue stems from consultation services and research. Looking ahead, Aleafia is expecting to reach annual production capacity of 138,000 kg of dried flower in 2019, and extraction capacity of 50,000 kg.

Organigram shares OGRMF, +7.33%  rose 7.2%, after the company, which trades on the TSX Ventures Exchange and the U.S. over-the-counter market, said Friday it’s planning to file paperwork with the Securities and Exchange Commission.

Chief Financial Officer Paolo De Luca said the company’s is seeing interest from investors in the U.S. and other overseas markets and expects a listing on a U.S. exchange will increase trading volumes and liquidity for investors.

See also: The ‘smart’ money is telling Canopy Growth investors to be careful

Canopy Growth Corp. CGC, +4.95%  , WEED, +4.99%  the biggest cannabis company in the world by market cap, said Monday it has secured a 308,000-square-foot facility in Kirkwood, N.Y., and will immediately start building the infrastructure needed for its hemp-derived cannabinoid extraction and related manufacturing in the Southern Tier region of New York state.

The company announced plans to invest $100 million to $150 million in a New York hemp facility back in January, and said it was looking at sites in the Southern Tier, where it will provide the anchor business in a planned hemp industrial park.

“The vision for our investment is to create an eco-system that inspires new entrepreneurs and generates more economic stimulus than a single company can offer,” Canopy co-Chief Executive Bruce Linton said in a statement.

Read also: Canopy Growth’s quiet co-CEO on the pot company’s ambitions in the U.S. and more

The company will start hiring senior leadership in late 2019 and to recruit the broader workforce in mid 2020. The site is expected to create hundreds of new local full-time positions, as well as contracted construction workers.

Cresco Labs. Inc. shares CRLBF, -1.99%  rose 1.7%, after it said it has filed a preliminary shelf to offer up to C$500 million of subordinate voting shares, debt securities, subscription receipts, warrants and units.

“Although we have no immediate plans to raise capital through this shelf filing, we believe it’s prudent to give the company the flexibility to access capital in the future when opportunities emerge to continue executing on our growth strategies,” co-Founder and Chief Executive Charlie Bachtell said in a statement.

Cronos Group Inc. shares CRON, -1.15% CRON, -0.82%  fell 1.6%. Chief Executive Mike Gorenstein told MarketWatch’s Max Cherney that the future of cannabis products in Canada lies with vaping, edibles, topicals and then beverages. In an interview published Friday, Gorenstein outlined the company’s plans, now that it has secured a $1.8 billion investment from Marlboro maker Altria Group Inc.

For more, read: CEO of pot producer Cronos talks about Altria deal, weed drinks and the rise of CBD

In other news, researchers from Kentucky-based Space Tango are scheduled to send hempseeds to the International Space Station on Tuesday aboard a SpaceX Drago cargo spacecraft, according to news site Marijuana Business Daily. The move is aimed at helping researchers better understand how the plant products and develops cannabinoids.

In regulatory news, Senator Mike Lee, a Republican from Utah, said on a radio show that states should have the authority to allow cannabis to be grown and sold and banks should be allowed to handle their cash needs, as reported by Marijuana Moment, a website that works with activists, industry representatives and policy makers on trends affecting cannabis. The senator said states have seen a spike in “duffel bags with $400,000 in cash making their rounds through the communities of Denver and elsewhere in Colorado because you cannot lawfully bank or electronically transfer money that is involved in marijuana.”

At a minimum, Congress should legislate to remove the restriction on banks, as a public safety issue, the senator said.

Elsewhere in the sector, Tilray Inc. TLRY, -1.17%  was down 1.6%, failing to benefit from a Piper Jaffray note on the stock that reiterated an overweight rating and $84 price target that is about 62% above its current trading level.

Analyst Michael Lavery said the company is well positioned given relationships with Novartis NVS, -0.20%   in medical, with Privateer Holdings in the U.S. and with beverages company AB InBev SA BUD, +0.53%

“Tilray is less focused on near-term growth (i.e. cultivation capacity) than its competitors, but we continue to believe it looks well-positioned for medium to long-term success,” Lavery wrote.

and GW Pharmaceuticals PLC GWPH, +2.75%  was up 2.1%. Aurora Cannabis Inc. was down 0.1%, medical cannabis retailer MedMen Enterprises Inc. shares MMNFF, -0.90%  were down 1.4% and Green Organic Dutchman Holdings Ltd. TGOD, +4.02% TGOD, +4.02%  was up 0.5%.

Read also: How living near a marijuana dispensary affects your home’s price

Read: Tilray stock rises after the company shows it can sell recreational pot

The Horizons Marijuana Life Sciences ETF HMMJ, +1.70% was up 0.4%, and the ETFMG Alternative Harvest ETF MJ, +1.44% was up 0.3%.

Meanwhile, the Dow Jones Industrial Average DJIA, +0.17%  was up 0.1%, while the S&P 500 index SPX, +0.21%  was up 0.2%.

Additional reporting by Max Cherney

See also: In California’s Weed Country, wildfires burn both cash and crops

Cannabis Watch: All of MarketWatch’s coverage of cannabis companies

Original Article Source: http://www.marketwatch.com/news/story.asp?guid=%7BDD94D688-6A83-11E9-88DE-3C6443A7B5E0%7D&siteid=rss&rss=1

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