There’s still no reprieve for weed investors. Shares of cannabis companies took another big hit Monday, adding to the worst week for the sector in nearly nine months, led by a big and active selloff in Aurora Cannabis Inc.
Separately, the NYSE American exchange said trading in the shares of India Globalization Capital Inc. US:IGC which claimed it was in the medical cannabis business, has been suspended immediately, as regulators have decided to commence delisting proceedings.
The delisting was because the company has “substantially discontinued the business that it conducted at the time it was listed or admitted to trading, and has become engaged in ventures or promotions which have not developed to a commercial stage or the success of which is problematical,” the NYSE said.
The stock had been halted for news since 9:03 a.m. Eastern. Prior to the halt, the stock had plummeted 81% since it closed at an 8 ½-year high of $13.00 on Oct. 2.
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The Horizons Marijuana Life Sciences exchange-trade fund HMMJ, -1.72% took an 11% dive and the ETFMG Alternative Harvest ETF MJ, -0.13% was knocked 8.7%. The 17% plunge in the Horizons ETF last week, and the 15% tumble in the ETFMG ETF, were both the biggest percentage declines in a calendar week since the week ending Feb. 2, 2018.
Among the more-active cannabis stocks, shares of Aurora Cannabis ACB, +0.14%dropped 16%, and were among the NYSE’s biggest percentage decliners. Trading volume reached 27.3 million shares, compared with the full-day average of about 15.4 million shares. The stock has now plummeted 44% in the past seven sessions to close at a 2-month low.
Meanwhile, shares of Massachusetts-based MariMed Inc. MRMD, -3.38% soared 11%, after the owner and manager of cannabis facilities and branded products said Monday that it has completed the acquisition of New Jersey-based licensing, consulting and operations company BSC Group.
Aleafia Health Inc. ALEAF, -9.84% said Monday it is launching a research, development and innovation division to be called Aleafia Labs, to advance the development of proprietary cannabis products, including those that may act as replacements for addictive prescription opioids and sleeping aids.
The company has previously announced a cannabis sleep study with Cronos Group Inc.
Aleafia shares dropped 10% to suffer a 10th-straight decline, according to FactSet, while Cronos’ stock CRON, -0.71% fell 13% for an 8th loss in 10 sessions.
Among other more-active marijuana sector stocks, Tilray Inc. TLRY, +4.08%tumbled 16%, Canopy Growth Corp. CGC, +0.10% fell 15%, New Age Beverages Corp. NBEV, -4.44% gave up 11%, Green Organic Dutchman Holdings Ltd.TGODF, -9.50% slid 17% and Aphria Inc. US:APHQF shed 17%.
Vancouver-based Namaste Technologies Inc.’s stock NXTTF, -6.31% declined 15%. The company announced before the open that its wholly owned subsidiary, Cannmart Inc., has signed a medical cannabis supply agreement with RMMI Corp. subsidiary Rocky Mountain Marijuana Inc., in which Cannmart will have the right of first refusal to buy 20% of RMMI’s gross production of medical cannabis.
Curaleaf Holdings Inc. shares debuted on the Canadian Securities Exchange Monday, under the ticker symbol “CURA.” GMP Securities analyst Robert Fagan initiated coverage of the medical and wellness cannabis company, which is the parent of Massachusetts-based Curaleaf Inc., with a buy rating.
Fagan said to his knowledge, the company has both the largest dispensary chain in the U.S. and the footprint with the most common-branded stores, with 28 stores all under the “Curaleaf” banner. He expects store count will climb to 60 in 2019.
“We believe [Curaleaf] has emerged as the new industry leader amongst public U.S. cannabis operators, with a multi-state retail footprint and production base which is double the size of its peer group average,” Fagan wrote in a note to clients. “We believe [Curaleaf’s] industry leading operating platform argues for the highest valuation metrics in the sector.”
Despite the marijuana sector’s recent plunge, the Horizon’s ETF was still up 6.8% over the past three months and the ETFMG ETF was up 10%, while the S&P 500 index SPX, -1.97% has declined 6.3%.