Aphria shares soared after becoming the first big marijuana company to turn a profit
Cannabis stocks ended the week on a high note as major producer soared having become the first big marijuana company to turn a profit.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, rose 1.6% to hit 209.3 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF grew 3.2% to C$16.31, while the OTCQX Cannabis Index also grew 1.1% to 704.5 points.
Buds
Investors cheered Inc’s () (NYSE:APHA) fourth quarter financials that showed the cannabis company posting a C$15.8 million profit, significantly beating analyst expectations.
The pot giant posted net revenue of C$128.6 million for the period ended May 31, 2019, an increase of 75% from the prior quarter. swung to a profit after a dismal showing during the year-ago quarter when the Leamington, Ontario-based company missed revenue expectations and reported a loss of nearly C$5 million.
Shares surged during morning trading, rocketing 31.5% higher to C$9.07 by midmorning in Toronto.
WeedMD Inc () was also up after securing a Health Canada licence amendment approval to expand production into ten additional 10,000 square foot cultivation rooms and ten new processing rooms at its state-of-the-art hybrid greenhouse in Strathroy, Ontario.
Its shares were up 5.1% at C$1.65.
Similarly, () gained traction after it successfully renewed its Health Canada licenses for the Ancaster grow facility until August 2022. Shares were up 5.9% at C$3.04 in Toronto.
Finally, global CBD company (TSE:CRON) shares jumped 8.1% on Friday's news that it acquired four of Redwood Holding Group, LLC’s operating subsidiaries. Redwood manufactures, markets and distributes hemp-derived cannabidiol infused skincare and other consumer products online and through retail and hospitality partner channels in the United States under the brand, Lord Jones.
Duds
Not all cannabis shares were feeling the love on Friday.
US multistate operator DionyMed Brands Inc (CSE:DYME) shed 8% at C$1.73 on news it has issued a US$2 million secured convertible note to Gotham Green Partners, an investor in the global cannabis industry.
MYM Neutraceuticals Inc (CSE:MYM) was also down 5.8% after closing the third tranche of its private placement, valued at C$1.2 million. Shares were at C$0.33 by midmorning.
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