By Ciara Linnane, MarketWatch
Elsewhere in the sector, shares of Aurora Cannabis /zigman2/quotes/210559470/composite ACB -1.58% /zigman2/quotes/203734337/delayed CA:ACB -1.69% , the most widely held of the Canadian licensed producers, were down 2.9% after the company said it has increased the size of a credit facility to C$360 million from C$200 million.
Just last month, a BofA Merrill Lynch analyst downgraded Aurora in a note that questioned the rate at which it was burning cash. Analyst Christopher Carey said the company would likely need funding some time in the next few quarters, noting it has C$230 million of convertible debt that matures in the first quarter of 2020, and that may need to paid in cash, if the stock fails to rally sharply between now and then.
Tilray shares /zigman2/quotes/209129655/composite TLRY +0.60% fell another 10%, in a continued response to earnings released Tuesday, that showed losses that were wider than expected but revenue that was greater than expected. Alliance Global Partners said they still expect top-line and margin improvement in 2020 as new form factors come on line and international sales and CBD become bigger contributors to sales.
“While we believe management’s long-term outlook on the market and profitability is appropriate given aspirations to be a global leader in the space, we believe the stock’s premium multiple reflects leadership position and as a result, we maintain our neutral rating and $50 price target,” analyst Aaron Grey wrote in a note.
Elsewhere in the sector, Cronos /zigman2/quotes/206842762/composite CRON +0.47% /zigman2/quotes/202715342/delayed CA:CRON +0.46% was down 5.4%, OrganiGram Holdings’s stock /zigman2/quotes/209289540/lastsale OGI 0.00% was down 2.8%. and Aphria /zigman2/quotes/207425803/composite APHA -0.89% /zigman2/quotes/205566616/delayed CA:APHA -1.48% was down 1.9%.
CannTrust fell another 2%, days after revealing regulatory issues with a second of its Ontario facilities.
The Horizons Marijuana Life Sciences ETF /zigman2/quotes/208856346/delayed CA:HMMJ +1.74% was down 4%, with 46 of its 54 member stocks declining. The ETFMG Alternative Harvest ETF /zigman2/quotes/204332491/composite MJ +1.52% was down 3%, with 23 of its 36 members falling.