Cannabis stocks down on corporate news
According to Libertex's sources, shares in major Canadian cannabis producers are in decline after Valens GroWorks posted zero earnings for last quarter. Over the previous reporting period, the company in fact recorded losses of $6.4 million, which is almost double the figure reported a year ago. However, this situation was somewhat eased by reports that the company had signed a multi-year extraction services agreement with Hexo that would see the latter supply Valens GroWorks with an annual minimum of 30 tonnes of cannabis.
There was more positive news for the market, too, as an Alabama Senate committee approved a bill to permit patients over the age of 19 to purchase medical cannabis freely.
Financial scouts predict that cannabis stocks will likely continue on their current downtrend over the short term as they look to bounce back from Valens GroWorks's recent poor results. They forecast share price drops for all the major producers, with Canopy Growth (CGC) set to fall to $47.5-48 and Aurora Cannabis (ACB) to $8-9. Meanwhile, they see shares in Tilray (TLRY) down below $51, with Cronos (CRON) and Aphria (APHA) expected to slide to below $16 and $7 respectively.