Vape maker Greenlane rallies on news of Canopy deal, Cronos falls after earnings

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Cannabis stocks are mixed Thursday. Vape maker Greenlane rallies on news of Canopy deal, Cronos falls after earnings:

Cannabis stocks were mixed Thursday, as investors digested a surprise profit from Toronto-based Cronos that was mostly due to a change in the value of derivative liabilities.

Cronos said it sold 1,584 kg of product in the quarter, up from 477 kg a year ago. The average cost of sales before fair value adjustments per gram sold was C$3.01, up 14% from C$2.63 in the second quarter of 2018. The company has a $4.8 billion market cap and has gained 35% in 2019, despite its small revenue base. All six analysts polled by FactSet rate the stock a buy.

U.S. cannabis accessories company Greenlane Holdings GNLN, +16.69% and market leader, Canada’s Canopy Growth CGC, +1.55% WEED, +1.26% announced an exclusive distribution deal for Storz & Bickel vapes. Smith Falls, Ontario-based Canopy acquired Germany’s Storz & Bickel, maker of the volcano, late last year.

Innovate Industrial Properties shares were up 0.4%. The cannabis real estate investment trust reported second-quarter net income available to common stockholders of $3.1 million, or 30 cents a share, compared with $1.2 million, or 17 cents a share, in the year-ago period. Revenue rose to $8.6 million from $3.3 million in the year-ago period. There are no reliable estimates on FactSet for the company, which paid a 60 cents quarterly dividend in July.

 

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