May 29, 2023

DS Duke

Global Business In World

Wednesday’s Cannabis Stock Advances and Declines, and What to Watch For

5 min read
VANCOUVER – Rotten Tomato Stocks – The mid-week hump has come and gone, and the...

VANCOUVER – Rotten Tomato Stocks – The mid-week hump has come and gone, and the cannabis market is once again providing the market with some significant advances and declines that are keeping investors on their toes. While many of the bigger players took a hit, there were still some players that kept themselves afloat and advanced on the day, while some others took it especially hard on the chin. Here now is a look at what stood out the most among the sector’s players.

Advancers: Clever Leaves Holdings Inc. (NASDAQ:CLVR) and The Green Organic Dutchman (OTC:TGODF) (TSX:TGOD)

Decliners: IM Cannabis Corp. (NASDAQ:IMCC) (CSE:IMCC) and KushCo Holdings, Inc. (OTC:KSHB)

Advancer: Clever Leaves Holdings Inc. (NASDAQ:CLVR)

It was a productive day for international pharmaceutical-grade cannabis company Clever Leaves Holdings, who saw their stock gain another $0.20 representing a 2.3{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} boost. The move represented the second positive day in a row for the company, and the 3rd in 4 trading days.

Clever Leaves is a fully vertically-integrated global cannabis company with operations in the United States, Brazil, Canada, Colombia, Germany, Peru and Portugal.

Their business model rides on the strengths of their genetics, cultivation, extraction, R&D, wholesale and distribution, as well as growing out recognizable brands.

Most recently in April, the company announced the expansion of its presence in Brazil and Peru through a partnership with Latin American pharmaceutical cannabis company Verdemed Holdings.

Decliner: IM Cannabis Corp. (NASDAQ:IMCC) (CSE:IMCC)

Shareholders of Israeli-based cannabis company IM Cannabis Corp. (NASDAQ:IMCC) (CSE:IMCC) got just one day of respite from a downward slide. On Wednesday, IMCC shares returned to their negative momentum declining for the 6th time in 7 trading days, falling another 8.86{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} on Monday, May 12, 2021 down to $4.22 per share—the lowest point the stock has hit since the company consolidated its shares in February.

Now since May 3rd, shares in IMCC have fallen 37.5{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} from $6.75 to $4.22—and are down a whopping 59{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} since its March 3rd.

To make matters worse for shareholders, IM Cannabis announced on Monday the closing of a US$35 million equity financing at US$5.75 per share. Just two trading days later, the stock has now closed at a $1.53 per share discount—representing a nearly 27{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} discount from the get-go.

Confidence in IMCC is also slipping for some shareholders of MYM Nutraceuticals (CSE:MYM) (OTC:MYMMF), who back on April 1 learned MYM was to merger with the downward trending IMCC. At that point in the story, IMCC shares were worth $7.51, compared to today’s $4.22 value that’s now nearly 44{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} lower originally agreed upon.

Further details of IMCC’s interesting valuation was covered in a previous report on Rotten Tomato Stocks.

Advancer: The Green Organic Dutchman (OTC:TGODF) (TSX:TGOD)

Making what looks to be a comeback is The Green Organic Dutchman (OTC:TGODF) (TSX:TGOD), which saw its stock rise 1.17{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} based on its Q1 2021 results.

The company lead the announcement by confidently stating that its “turnaround plan [is] well under way”—as evidenced by a 194{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} increase in revenue YoY, 83{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} increase in gross profit YoY and more.

TGOD appears to be demonstrating a successful turnaround plan execution, having completed the transformation of the company into a profitable organic cannabis producer, that’s grown its opportunities beyond Canada, abroad into places like Germany, Mexico, Australia, and the United States.

Decliner: KushCo Holdings, Inc. (OTC:KSHB)

Trading over 2.15 million shares in volume, KushCo took a beating on Wednesday, May 12, 2021, getting knocked down over 10.2{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} on the day.

Overall it’s been a rough month for the company, dropping 33{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} from $1.25 on April 13 to its current $0.835.

Much like the issues seen by IM Cannabis, KushCo’s timing for its falling value seem to be pretty unfortunate for those following the company’s proposed merger with Greenlane Holdings (NASDAQ:GNLN)—who also took a hit of -7.24{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} on the day.

Since their last official press release discussing the Greenlane deal, KSHB shares have fallen nearly 20{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} from $1.04. It hasn’t been rosy for GNLN either, which has seen its shares fall 18.4{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} from $4.40 down to $3.59. As well for Greenlane, the company’s timeline is once again being tied up by reminders of ongoing legal investigations from a New York law firm in connection to the KushCo merger.

Article Source: Rotten Tomato Stocks

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