S&P/TSX Venture Composite index lower on Cannabis companies

Trading on the S&P/TSX Venture Composite index (INDEXTSI:JX) was dominated by cannabis companies such as Aurora Cannabis Inc. (CVE:ACB), Aphria Inc (CVE:APH), Mettrum Health (CVE:MT), Organigram Holdings Inc. (CVE:OGI) and Emblem Corp (CVE:EMC) dominated  , though it closed slightly lower today down 1.42 or 0.18 percent to 793 on moderate volume of 162.7 million shares traded with a total market value of 51.4 million dollars.

Cannabis companies dominate

The most valuable companies trading big volumes included Aurora Cannabis Inc which rose by 11 cents or 4.4 % on volume of 3 million shares to close at $2.61.

Aphria Inc also went higher by $0.12 or 2.21% on volume of 716,000 shares, and closed at $5.55. The company announced today that it was launching the fourth part of an expansion plan that will increase the square footage under cultivation from today’s 300,000 square feet to 1 million square feet. The expansion will be made of up 700,000 square feet of “Dutch Style” greenhouses, with the rest being allocated to new “Level 9” vaults, automation equipment, and a 15 megawatt power and heat co-generation facility.

According to the company’s press release,

“Aphria is in the midst of completing its previously disclosed 57,000 square foot Part II expansion and its 200,000 square foot Part III expansion. Part II expansion has reached the point that the Company has requested that Health Canada perform its inspection of the expansion. The Company anticipates increasing production capacity from 2,800 kgs annually to 7,500 kgs annually and is on target for full crop rotation by June 2017, once Part II expansion is approved by Health Canada. Part III expansion remains on schedule and on budget, with expected completion in late October 2017, Health Canada approval in January 2018 and reaching full crop rotation by the end of April 2018. The Company anticipates increasing production capacity from 7,500 kgs to 21,000 kgs, once Part III expansion is approved by Health Canada.”

Another high volume Trader was Mettrum Health Corp. It rose $0.11 or 1.64% to close at $6.81 in volume of 304000 shares Metro is currently the subject of a takeover bid by Canopy Growth Corporation. Other solid traders in the Cannabis sector included Organigram Holdings Inc which traded 452000 shares I lost $0.06 or 2.24% to close at $2.66.

And recent newcomer Emblem Corporation also suffered a loss of $0.07 or 1.6% to close at $4.30 on volume of just over a hundred thousand shares.

Other valuable Traders today included NexOptic Technology Corp who added $0.20 or 16% too close at $1.45 on volume of 1.73 million shares traded. Keek, the social media app developer, fell by 12 cents or 6.74% on volume of1 million shares to close at $1.66.

James West

Editor and Publisher

James West founded Midas Letter in 2008 and has since been covering the best of Canadian and US small cap companies. He covers global economics, monetary policy, geopolitical evolution, political corruption, commodities, cannabis and cryptocurrencies. As an active market participant, James is not a journalist and is invariably discussing markets...
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