Weekly cannabis stocks report: Curaleaf Holdings shines

Among the big winners were Curaleaf Holdings, Canopy Growth Corporation, and Tilray

Curaleaf Holdings cannabis stocks

Curaleaf Holdings Inc. has 57 dispensaries in 15 states, including this one in New York's Orange County. Photo by Daniel Case.

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A growing Massachusetts-based vertically integrated weed company is making a splash with investors. On Friday (June 10), Curaleaf Holdings Inc. shares spiked up by 11.4 percent to close at $8.89 on the Canadian Securities Exchange.

It’s already establishing itself as a leader in the edibles market. And it was one of many cannabis stocks to post impressive gains on the week’s final day of trading.

On Friday, Curaleaf Holdings announced that it had closed a deal to buy Colorado-based Virginia’s Kitchen dba BlueKudu.

Curaleaf Holdings describes BlueKudu as a “producer of premium cannabis edibles for medical and adult-use customers, having sold over one million chocolate bars”.

In addition, BlueKudu also has a line of THC- and CBD-infused bonbons, gummies, and baked goods.

As a result of this deal, Curaleaf Holdings has added artisanal cannabis products with vegan- and gluten-free options to its expanding portfolio, which includes the Select line purchased in February.

On the week, Curaleaf Holdings shares rose 10.43 percent, leaving it with a market capitalization of $3.93 billion.

It will report its next quarterly results after markets close on August 17.

Curaleaf Holdings CEO Joseph Lusardi said last month that the company’s acquisition of GR Companies Inc., a.k.a. Grassroots, will make it the world’s largest cannabis company by revenue.

In addition to Curaleaf Holdings, investors pushed up other cannabis stocks

Meanwhile, the share price of Canada’s most valuable cannabis company also ended the week on a high note.

Canopy Growth Corporation closed on Friday at $23.66 on the Toronto Stock Exchange, up 8.14 percent on the day. On the week, Canopy Growth shares rose 6.29 percent.

The Smith Falls, Ontario–based licensed producer’s market capitalization stands at $8.75 billion.

Other Canadian cannabis stocks showed real signs of life.

Nanaimo-based Tilray, for example, also had a buoyant end to the week. Its shares rose 8.1 percent on Friday on NASDAQ to close at US$8.01.

Tilray’s market capitalization reached US$1 billion. On the week, its shares rose 13.8 percent, but they’re still well below the 52-week high of US$46.36.

Over five days, that exceeded the performance of Curaleaf Holdings.

Another winner on Friday was Toronto-based Cronos Group Inc., with shares posting a 4.75 percent gain to close at $8.60 on the TSX.

On the week, Cronos shares rose 2.87 percent, leaving it with a market capitalization of $3 billion.

Shareholders in Moncton-based Organigram Holdings could also celebrate some good news following the previous week’s layoffs of 25 percent of the workforce.

On Friday, Organigram shares jumped 3.48 percent to close at $2.08 in Toronto.

On the week, Organigram shares were up 4.95 percent, leaving it with a market cap of $365.46 million.

Shares in Leamington, Ontario–based Aphria Inc. didn’t do quite as well as the others mentioned above on Friday. Aphria stock increased by 2.64 percent to close at $5.83 on the TSX.

Aurora, Aphria, and Hexo failed to excite investors

On the week, its share price dropped 1.2 percent. Aphria’s market cap is $1.68 billion.

The share price of another big player, Edmonton-based Aurora Cannabis Inc., edged upward by 1.81 percent in Toronto on Friday, closing at $16.33.

Over the week, however, Aurora shareholders saw their investment diminish by 1.86 percent. The company’s market cap is $1.84 billion.

On Monday (July 6), Aurora installed the former CEO of Reliva, Miguel Martin, as its new chief commercial officer.

Perhaps over time, Aurora can regain some of the momentum now being demonstrated by Curaleaf Holdings.

Meanwhile, Ottawa-based Hexo Corp. also experienced a slight boost on Friday, rising 1.99 percent to reach US$0.75 on the New York Stock Exchange.

On the week, its shares were up 2.74 percent, leaving Hexo with a market cap of US$377.71 million.

One of the few losers in the cannabis space this week was Toronto-based Flower One Holdings Inc. Its share price plummeted 11.54 percent to close at $0.46 on the Canadian Securities Exchange on Friday.

On Tuesday (July 7), it revealed that its chief financial officer, Geoff Miachika, resigned for “personal reasons”, effective July 15.

Village Farms goes Dutch

One of this week’s more intriguing developments concerned Delta-based Village Farms International Inc.

On Wednesday (July 8), it announced an agreement with DutchCanGrow Inc. to become one of the Netherlands-based cannabis company’s six equal shareholders.

“DCG is pursuing the opportunity to become one of a limited number of licensed cannabis growers (up to a maximum of 10) when the Dutch government permits the first legal recreational cannabis market in Europe under its 10-city Experiment to Investigate Closed Cannabis Supply Chains (the “WECG”),” Village Farms said in a news release.

Under the WECG, 78 coffee shops in 10 Dutch cities will be required to buy all of their weed over four years from federally approved licensed producers.

Village Farms saw its share price rise 6.3 percent on the week to close at $6.91 on the TSX Venture Exchange. The company’s market cap stands at $391.17 million.

Charlie Smith

I'm the editor of the Georgia Straight newspaper in Vancouver, as well as a CannCentral contributor.

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