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Buds & Duds: Cannabis stocks continue to tumble but ICC International Cannabis shares soar on deal to acquire VendaPharm

Also on the move were MedMen, Flowr, Golden Leaf Holdings, Tilray and Aleafia Health
stock symbol cannabis up
ICC International Cannabis shares were on the rise after it announced plans to acquire VendaPharm, which controls the international rights to proprietary THC/CBD vending machines across Europe

Cannabis stocks dipped on Thursday, with shares broadly down across US and Canadian markets.

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, was down 1.5% to 242.7 points on Thursday afternoon. The Horizons Marijuana Life Sciences Index ETF dropped 1.7% to C$18.49. The newly launched OTCQX Cannabis Index was down 2.5% at 770.5 points. 

Buds

ICC International Cannabis Corp (CSE:WRLD.U) (OTCMKTS:WLDCF) shares soared on Thursday after it announced that it has entered into an agreement to acquire VendaPharm EU LLC, which controls the international rights to proprietary THC/CBD vending machines across Europe. 

Shares jumped up 15.6% at US$0.20 in New York, up 17.6% at C$0.20 in Toronto. 

The Canadian company plans to deploy the vending machines into its existing network of 80,000 high-traffic retail endpoints and pharmacies across Europe.

“More people than ever, including millennials, are choosing convenience stores as their primary source of produce,” said CEO David Shpilt. “ICC seeks to place vending machines in these high traffic locales, particularly chains or franchises along major thoroughfares.”

READ: ICC International Cannabis to deploy THC/CBD vending machines across Europe

Other gainers Thursday included MedMen Enterprises Inc (CSE:MMEN) (OTCQX:MMNFF), which was up 6.6% at US$2.05 in New York after news that a group of investors dropped a lawsuit against the firm. The lawsuit argued CEO Adam Bierman and President Andrew Modlin made decisions in their own personal interest, rather than shareholders, and has been dismissed, according to a release from MedMen on Thursday.

"MedMen looks forward to the opportunity to expeditiously litigate the frivolous and unfounded claims against the company," it said in a statement, adding it intends to seek "substantial monetary and punitive damages."

Other gainers on Thursday included The Flowr Corporation (CVE:FLWR) (OTCMKTS:FLWPF), whose shares rose after it announced its application has been approved to have its common shares listed on the Nasdaq Capital Market.

Shares were up 1.1% at C$6.18 in Toronto, up 1% at US$4.61.

Duds

Shares of Aleafia Health Inc (TSE:ALEF) (OTCMKTS:ALEAF) were dropping Thursday, after it announced it will raise $35 million in a public offering. The firm will issue 35,000 convertible debenture units of the company at a price of $1,000 per unit. Each unit will consist of one 8.5% unsecured convertible debenture and 680 common share purchase warrants of the company, which will entitle the holder to purchase one common share in the capital of the company at a price of $1.55

Shares were down 8.2% at C$1.34 in Canadian trading, down 4.7% at US$1.01 in New York.

Other detractors Thursday included Golden Leaf Holdings Ltd (CSE:GLH) (OTCMKTS:GLDFF), which dropped 9.6% at C$0.07 in Toronto.

Earlier this week, the firm released news that it will hold a meeting for those who hold debentures issued by Golden Leaf in Nov 2017 at the end of June to consider and potentially approve "an extraordinary resolution to amend the indenture to increase the monetary threshold for permitted asset dispositions to better facilitate the disposition of unprofitable, unproductive, or strategically unnecessary assets," according to a statement released by the firm. 

The Canadian company has cultivation, production and retail operations in Canada as well as in Oregon and Nevada.

Tilray Inc (NASDAQ:TLRY) shares were also on the decline on Thursday, down 1.4% at US$35.10 on no news. 

Contact Katie Lewis at [email protected]

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