Image Source: Pixabay

After market hours on Thursday, Tilray (TLRY) announced it had launched a registered offering of $150 million worth of convertible senior notes which means more debt and more dilutive equity coming to the market. Tilray's stock price dropped precipitously on Friday and, given the dismal consumer sentiment regarding cannabis stocks - and in this case Canadian cannabis (LP) stocks - so did the balance of LP stocks as well as the tobacco, beer and spirits companies who have major investments in said stocks.

The 5 largest licensed producers (LPs), as tracked in our munKNEE Canadian Cannabis LPs Index, are ranked below, in descending order, as to their stock performances this past week:

1. Tilray (TLRY):

• DOWN 22.8% week-ending May 26th
• Anheuser-Busch (BUD) has a $100 million joint venture with TLRY and it was DOWN 3.8% on the week.

2. Aurora (ACB): 

• DOWN 19.4% 

3. Canopy Growth (CGC): 

• DOWN 19.3%
• Constellation Brands (STZ) has a 39% stake in CGC and it was DOWN 1.0% on the week.

4. OrganiGram (OGI): 

• DOWN 10.2%
• British American Tobacco (BTI) has invested C$221M in a product development partnership with OGI and it was DOWN 1.7% on the week.

5. Cronos (CRON): 

• DOWN 7.3% 
• Altria Group (MO) has a 45% stake in CRON and it was DOWN 1.5% on the week

Summary

The above 5 cannabis LP's were DOWN 16.4% on the week. In comparison, the 7 constituents in the munKNEE American Cannabis MSOs Index were UP 1.8%. The Global X Cannabis ETF (POTX), which consists of the above 5 highlighted Canadian stocks plus another 12 cannabis or cannabis-related (i.e. auxiliary) stocks was DOWN 12.5% last week, in comparison.

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