Despite a few hiccups like Green Growth Brands Inc (OTC: GGBXF) filing for insolvency, this was a great week for marijuana stocks, with all major ETFs posting double-digit gains.
Over the five trading days of the week:
- The ETFMG Alternative Harvest ETF (NYSE: MJ): rose 16.6%.
- The AdvisorShares Pure Cannabis ETF (NYSE: YOLO): advanced 19.8%.
- The Cannabis ETF (NYSE: THCX): was up 24%.
- The Amplify Seymour Cannabis ETF (NYSE: CNBS): gained 15.8%.
- The SPDR S&P 500 ETF Trust (NYSE: SPY) closed the period up 3.2%.
The rally, which began Thursday morning, was spurred by an item reported by the New York Post that day, even though the information contained in the article had been out for several days. Benzinga reported on it last week.
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Green Market Report CEO Debra Borchardt said it “wasn’t a complete surprise” that the company filed for insolvency.
The saga could evidence a “new method of acquiring a cannabis company: lend money to a financially struggling company to the point they can’t pay it back and then when they default, take over,” she said.
“It’s probably a whole lot cheaper than an outright acquisition since a lot of companies overvalue themselves.”
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Aurora Cannabis Inc. (NYSE: ACB) shares finally started to cool off after a three-session-long rally that netted the stock a gain of about 194% — mostly driven by strong earnings reported in the previous week.
Also this week, the company announced it would acquire CBD platform Reliva for $40 million in Aurora common shares, effectively entering the U.S. market.
Following the announcement, Cantor Fitzgerald analyst Pablo Zuanic maintained an Overweight rating on Aurora shares and hiked the price target from CA$22 ($15.77) to CA$27 ($19.36). Needham analyst Matt McGinley has a Hold rating on the shares. Cowen analyst Vivien Azer maintained a Market Perform rating and CA$11 ($7.89) price target.
Finally, Benzinga announced the new members of its Benzinga Cannabis Advisory Council:
- David Cohen, CEO of Fluence by OSRAM
- David Leider, managing partner of FocusGrowth Capital
- Dr. Chanda Macias, CEO of Ilera Holistic Healthcare
- Emily Paxhia, managing director of Poseidon Asset Management
- Jason White, CMO of Curaleaf Holdings (CURLF)
- Jeff Wells, CEO of Metrc
- Lauri Kibby, CFO of King’s Garden
- Morgan Paxhia, managing director of Poseidon Asset Management
The prior members were:
- Al Harrington, 16-year NBA player, CEO and founder of Viola Brands
- Alan Brochstein, chair of the Benzinga Cannabis Advisory Council, founder of 420 Investor and New Cannabis Ventures
- Barrington Miller, director of client listed services at the Canadian Securities Exchange
- Beth Stavola, CSO and director of iAnthus Capital Holdings Inc (ITHUF) (IAN)
- Codie Sanchez, managing director of Entourage Effect Capital
- Dave Bocchi, head of investment banking at Alliance Global Partners
- Everett Knight, executive vice president of corporate development and capital markets …