E Canadian Pure-Play LP Pot Stock Index Jumped +18% This Week

The Canadian Licensed Producers (LP) component of the munKNEE Pure-Play Pot Stock Index has 9 constituents and they went up 18.3%, on average, this week vs. -8.6% and -14.5 the two previous weeks. The details are as follows:

LP Pure-Play Pot Stock Index Performance

Cannabis stocks are likely to continue their recent momentum after New York Governor Andrew Cuomo stated that his staff will be working on the marijuana bill over the weekend and expect a deal to materialize in the next couple of weeks capping off a multiyear effort to legalize marijuana in the State.

The constituent advances last week were as follows, in descending order:

  1. Organigram (OGI): +65.7% to $4.44/share
    • Announced that a subsidiary of tobacco mainstay British American Tobacco has bought a 19.9%% stake in its equity for roughly C$221M (US$175 million).
  2. Tilray (TLRY): +27.5% to $27.57/share
    • Received regulatory approval to sell medical cannabis products in New Zealand.
    • Reported Q4 financial results (see here)
  3. Aphria (APHA): +27.3% to $20.00/share
    • There wasn't any notable news for Aphria last week other than the ongoing highly anticipated merger between Aphria and Tilray which is set to close in Q2 and make the merged company the world’s biggest cannabis company. 
  4. Valens (VLNCF): +23.5% to $1.68/share 
    • Entered into a custom manufacturing agreement with Experion Biotechnologies Inc., a partner of the Company's recently acquired LYF Food Technologies Inc.
    • Closed the acquisition of LYF Food Technologies Inc. for CDN$24.9 million payable on closing, plus approximately CDN$17.5 million in post-closing consideration subject to achieving certain earn-out EBITDA milestones. With this acquisition of LYF, Valens has accelerated its footprint in the edibles category, which is one of the fastest-growing segments of the Cannabis 2.0 and 3.0 markets.
    • Released its Q4 results on Feb. 25 for the period ending Dec. 31, 2020 (see here).
  5. Hexo (HEXO): +16.7% to $7.49/share
    • Won a complete dismissal in the federal US securities class action pending in the United States District Court for the Southern District of New York.
  6. Aurora (ACB): +10.1% to $10.57/share 
    • Has filed a new preliminary short form base shelf prospectus to offer up to $1 billion in securities via common shares, preferred shares, warrants, subscription receipts and debt securities to provide maximum flexibility to pursue strategic initiatives, which may include acquisitions or partnerships pursuant to the company’s previously stated global growth strategy, and will be effective for a 25-month period.
  7. Canopy (CGC): +9.6% to $34.20/share
    • Mexico's lower congressional house approval of a bill that would decriminalize marijuana bodes well for Canopy Growth as Mexico would be one of the biggest legal cannabis markets in the world as does the fact that N.Y. state legislators are close to negotiating a deal with New York Gov. Andrew Cuomo to legalize recreational marijuana in the state which would become one of the largest legal cannabis markets in the U.S.
  8. Cronos (CRON): +9.1% to $10.34/share 
    • Released its Q4 results on Feb. 26 for the period ending Dec. 31, 2020 (see here).
  9. Rubicon (ROMJF) +6.7% to $2.56/share 
    • Entered into an agreement with The Valens Company to provide organic certified extraction services.
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