It's not been a great week for marijuana stocks. The Marijuana Index started Monday at 114 and ticked down to a close of 109 on Thursday. Investors haven't been too happy with a failed drug trial and disappointing earnings.
The big bomb this week was Zynerba Pharmaceuticals. There were high hopes for its drug trial for seizures, but the study failed and the stock plunged 60%. It has recovered a bit as some investors jump back in with hopes for the next study for osteoarthritis.
Innovative Industrial Properties also briefly dropped on its delivery of second quarter earnings before recovering. The NYSE-listed REIT generated revenues of $1.3 million for the three months ending June 30 but also reported a net loss of $422,000 or 13 cents per share. The company said that it has identified approximately $100 million of additional potential properties for purchase.
Terra Tech Corp. also took a beating this week, falling from 27 cents to 24 cents after reporting its second quarter results. The company made a conscious decision to exit the ornamental flower business, which accounted for $4.5 million in revenue, however, some of that was offset by strong sales in the dispensary business. Gross profits for the second quarter were $1.5 million, also lower than last year’s $1.6 million. The company also reported a net loss of $0.5 million, a marked improvement over last year’s second quarter net loss of $4.9 million.
Green Bits, Inc., announced today that the company has passed $1.5 billion in annual sales processed through its point-of-sale (POS) system. The company also announced that it completed a $2.2 million growth financing with participation from Casa Verde Capital and several prominent Silicon Valley entrepreneurs.
In the Viridian Deal Tracker for the week ending August 4, there were 8 capital raises, 6 mergers acquisitions, one spinoff and one going public transaction.