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Buds & Duds: CannTrust in the red again after Toronto listing in jeopardy following failure to file financials

Cannabis stocks stayed fairly flat on Wednesday as the US heads into Thanksgiving celebrations

cannabis hemp plant
Flower One Holdings, True Leaf Brands and Aurora were all in the green on Wednesday

Cannabis stocks stayed fairly flat on Wednesday, a day after shockwaves hit the markets thanks to the FDA’s warning that it could not ensure CBD was safe for humans or animals.

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada lost 0.4% at 117.1 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF inched 0.7% to C$9.12, while the OTCQX Cannabis Index fell 0.8% at 444.7 points.

Buds

Flower One Holdings Inc (CSE:FONE) (OTCMKTS:FLOOF) bloomed on Wednesday after the Nevada-focused cultivator reported a net income of US$15.7 million during the third quarter.

The Toronto-based cannabis company also signed a deal with California’s Kiva Confections to bring its edibles to the state of Nevada.

Shares of Flower One were up 9.1% in Canada and 9.5% over the counter at C$0.96 and US$0.73 respectively.

True Leaf Brands Inc (CSE:MJ) also gained ground on Wednesday north of the border, a few days after securing there new cultivation and sales licenses from Health Canada for its Lumby, British Columbia facility.

True Leaf shares were 11.5% higher in Canada at C$0.15.

Aurora Cannabis Inc (TSE:ACB) (NYSE:SCB) was also in the green in Toronto and New York after it opened a new 11,000-square-foot flagship store in West Edmonton Mall, the largest shopping centre in North America.

The news sent Aurora’s shares up 3.3% in New York and 1.7% in Toronto at US$2.47 and C$3.27 respectively.

Duds

Beleaguered producer CannTrust Holdings Inc (TSE:TRST) (NYSE:CTST) found itself among the laggards again on Wednesday as news broke that the company failed to file financial statements, causing the Toronto Stock Exchange to review its listing eligibility.

According to news reports, the TSX told the company if it can’t make the disclosures by March 25, 2020, the company's securities will be delisted 30 days following that point.

Shares of CannTrust were down 3.6% in Toronto at C$1.08 and 2.6% in New York at US$0.81 on Wednesday morning.

Elsewhere, Sunniva Inc (CSE:SNN) bled following the release of its third-quarter financials that saw the company post a net loss of C$39 million, more than double the amount it put up during the same quarter last year.

The Vancouver-based company blamed “significant cost overruns” in the construction of its Cathedral City Glasshouse facility.

Shares of Sunniva sank 31.1% on the CSE to C$0.31 and 27.2% over the counter at US$0.23.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

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