Marijuana penny stocks are up and down today, on a slower morning for cannabis stocks. Khiron Life Sciences (TSXV:KHRN) (OTCQB:KHRNF) dropped -15% last week, and the stock is continuing to fall today. Canopy Rivers Inc. (TSXV:RIV) (OTC:CNPOF) also dropped last week, even after it reported its third-quarter financial earnings.
It remains unknown at this time what the market correction is all about, but it could be a number of reasons. Today, both marijuana penny stocks are trading red. Is there potential for these stocks to rebound? Let’s find out!
Khiron Life Sciences Up and Down
In the first three weeks of February, KHRN stock climbed over +68%. The company released news on February 6th regarding a $25 million bought deal equity financing with BMO and Canaccord Genuity Corp. After this news, the company didn’t release a new update until the last day of February.
Why the penny stock rose and fell in the time frame it did remains unclear. On February 19th, the Investment Industry Regulatory Organization of Canada (IIROC) halted the trading of KHRN stock, most likely due to its spike in share prices without any recent company news.
Four days ago, the cannabis company announced the closing of its $28.84 million bought deal financing. With its instability, investors may stay away from this marijuana penny stock moving forward. Despite the closing of its new financing deal, Khiron Life hasn’t shown any signs of positive company progress or stock price stability the past month.
At the time of writing, KHRN is trading at $3.06 a share on the TSXV, down -$0.25 (-7.55%). On the OTCQB, the marijuana penny stock is trading at $2.29 a share, down – $0.20 (-8.03%).
Canopy Rivers Third Quarter Financials
Canopy Rivers stock dropped -23% in the month of February. This past week the company reported its third-quarter financial highlights. For the previous period, Canopy ended with $46.92 million CAD in cash, up from its previous $46.29 million CAD on March 31st, 2018. The company’s operating income was down -72.5% from the previous year at $8.378 million CAD from $30.52 million CAD. Canopy’s net income for the quarter was $1.42 million CAD, down -93% from the previous year of $21.77 million CAD.
“We believe that Canopy Rivers has rapidly developed a strong position in the dynamic and fast-growing global cannabis industry,” said Bruce Linton, Chairman and CEO of Canopy Rivers. “By bringing focus and clarity to every investment decision and working alongside global market leader Canopy Growth, Canopy Rivers is responding to the greatest need in the cannabis industry—smart capital.”
Despite its dropping numbers, Canopy Rivers received another investment from Canopy Growth Corporation (TSX:WEED) (NYSE:CGC) in early February. The major cannabis company gave Canopy Rivers an additional $30 million CAD. For this reason alone, the marijuana penny stock has the potential to correct purely based on this partnership and further investment. Once finalized, Canopy Growth will own 27.3% of Canopy Rivers.
At the time of writing, RIV is trading at $4.39 a share on the TSXV, down -$0.09 (-2.01%). On the OTC, the marijuana penny stock is trading at $3.28 a share, down -$0.13 (-3.89%).
Both marijuana stocks continue to drop on the market today. Among the group, Canopy Rivers has the greatest amount of potential to rebound, considering its partnership and further investment from Canopy Growth Corporation. Khiron Life Sciences remains unstable at this time.
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