Buds & Duds: Cannabis layoffs to continue; BevCanna and Mota Ventures shine on European distribution deal
BNN Bloomberg reported that Aurora Cannabis is the next major firm to slash its workforce
Marijuana stocks showed little movement on Thursday as the main indices held steady across North America.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, lost 0.6% at 105.5 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF was flat at C$8.89, while the OTCQX Cannabis index decreased by 0.7% to 441 points.
BevCanna Enterprises Inc () (OTCMKTS:BVNNF) was up on the day after signing a joint venture with Corp () (OTCMKTS:PEMTF) that would allow Mota to market and sell BevCanna's CBD products in Europe.
The companies have signed a letter of intent to negotiate a venture in which BevCanna will contribute its in-house brands and formulations, as well as its proprietary intellectual property for water-soluble powders. Mota, on its part, will arrange manufacturing, marketing and distribution in Europe, with a particular emphasis on Spain, Portugal, Austria, Germany, France and the UK.
Shares of the beverage firm were trading 8.5% higher in Canada at C$0.39 and 3.2% higher over the counter at US$0.28. Mota Ventures also ticked higher, up 1.9% in Canada at C$0.54 and trading at US$0.42 over the counter.
European-focused cannabis firm Inc () (OTCMKTS:EURPF) gained on the announcement that it has formed a panel of expert European advisors to help the company realize its business aims.
Shares of the firm rose 14.3% in Canada at C$0.04 and 19.7% over the counter at US$0.03.
Another day, another round of layoffs coming in the cannabis sector.
BNN Bloomberg reported that Aurora Cannabis Inc (TSE:ACB) (NYSE:ACB) is planning to cut 10% of its workforce, which currently totals around 3,400 employees globally.
The move follows the news earlier this week that () is also making moves to whittle down its staff in an effort to cut costs and reach profitability.
Shares of Aurora declined 3.4% to C$2.72 in Toronto and 4.2% to US$2.03 in New York.
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