What a crazy week for cannabis stocks. Tilray began the week at $117, which was already a fairly rich valuation. It closed at $154 on Tuesday and then all hell broke loose. It opened at $233 on Wednesday, shot up to $300 at one point, dropped to $151 and then the trading was halted during the day. It eventually reopened and the stock closed at $214.
Tilray was approved by the DEA to bring in medical marijuana for a scientific study, which made some people think this was opening the floodgates for cross-border cannabis sales. Actually, it was a classic short squeeze from the short sellers who had been screaming to short the stock.
Also earlier this week, Bloomberg reported that Coca-Cola was considering doing a beverage deal with Aurora Cannabis. Both firms denied they were in talks but left some wiggle rooms saying they always look at various deals. Still, the market went nuts about Coca-Cola making a CBD drink. Aurora Cannabis COO Cam Battley told the Financial Post that it would soon be listing its stock on a major exchange in the U.S., but wouldn’t disclose which one it would be.
MJ Freeway scored $10 million in an oversubscribed deal this week.
Pure Global Cannabis also did a $10 million private placement and Valens GroWorks did a bought deal valued at C$25 million.
MPX Bioceutical (MPXEF) is acquiring all of the outstanding shares in the capital of Spartan Wellness Corporation from Ninth Square Capital Corporation and Veteran Grown Corporation.
GrowGeneration Corp. (GRWG) purchased HeavyGardens.com, an online seller of hydroponic and grow supplies. HeavyGardens.com is projected to generate over $5,000,000 in sales for GrowGen for fiscal year-end 2019.
KushCo Holdings, Inc. (KSHB) formerly known as Kush Bottles said that it is expecting to report a 171% increase in annual revenue to over $51 million for the fiscal year ended August 31st, 2018. The stock popped over 8% to lately trade at $5.23 on the news.
Sunniva (SNNVF) reported that its total revenues over a six month period were C$9.6 million, against a net loss of C$11.2 million, compared to an C$11.7 million loss in the same period last year and the company did a bought deal for $10 million.
And Canopy Rivers (RIV) began trading on the Toronto Exchange under the symbol RIV.