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Cannabis stocks are a sea of ​​red as the seal extends to the sixth day



Cannabis shares were a sea of ​​red again on Monday, with Aurora Cannabis falling another 9% after disappointing earnings and MedMen falling 17% on news of job cuts and asset sales.

ETFMG Alternative Harvest ETF

MJ, -3.15%

was last down 2.3%, with 23 of its 36 member shares trading lower. The ETF has fallen for six straight days and is now down 34% year to date.

The Horizons Marijuana Life Sciences ETF

HMMJ, -3.24%

was down 1

.9%, with 35 of the components decreasing. S&P 500

SPX, + 0.02%

was down 0.1% and Dow Jones industrial average

DJIA, + 0.06%

was flat.

Aurora

ACB, -10.64%

,

ACB, -10.45%

which suffered its worst trading session in more than five years on Friday with a 17% decline, extended its one month losses to 32%, in a continued response of last week's income report and news that it is stopping construction at two plants and converting C $ 155 million convertible bonds into equities when it works to save money.

The news presented to investors, which came after a period of layoffs in the sector and a broad reassessment of risk. Investors who enthusiastically bought shares earlier this year are looking at huge losses as the rollout of legal cannabis in Canada has not reaped the hopeful rewards.

See also: Short sellers increase cannabis stocks even after summer sale

Don't miss: All excuses cannabis companies make for a nasty earnings crop [19659002] Dealer MedMen

MMNFF, -20.28%

said late Friday that it is cutting more than 20% of staff and is looking to sell assets as it struggles with a cash crunch, a growing problem for cannabis businesses . The company said it will lay off 190 workers, scaling back marketing and outsourcing functions such as human relations in an effort to reduce spending on sales, general and administrative efforts at an annual rate of $ 85 million.

In the fiscal year ended June 29, MedMen reported general and administrative expenses of $ 244 million and sales and marketing expenses of $ 27.5 million.

View now: Canopy Growth CEO defends the ugly quarter as a one-off event

MedMen will also sell its stake in a pot-focused real estate investment trust for $ 14 million, leaving various venture investments for a net return of $ 8 million, and will look to sell "certain operations and licenses in states that are currently not considered critical to the company's retail footprint."

In October, MedMen finalized a plan to buy PharmaCann LLC, a stock deal valued at $ 682 million when it was first announced in 2018.

Hexo shares

HEXO, -7.59%

HEXO, -6.38%

was down 1.4%, after the company said it discovered illegal cultivation on a plant in Niagara that it bought as part of the acquisition of Newstrike Brands Ltd. last year. The company said growth was in a block that had not received "sufficient" licenses, but that it informed Health Canada immediately, and the regulator is satisfied that the company handled the problem properly.

See: Canada asks cannabis companies to improve cross-compliance information

The plant is no longer in operation after Hexo chose to discontinue operations as part of a cost-saving exercise.

"Hexo is choosing to proactively address this occurrence now that it recently became aware of false information sent out to damage the company's reputation," it said in a statement.

Elsewhere in the Tilray Inc. sector

TLRY, + 0.73%

was down 1.3%, Cronos

CRON, -1.35%

CRON, -2.27%

was down 1.1%, Aphria Inc.

APHA, -6.12%

APHA, -6.90%

was down 7% and Canopy Growth Corp.

CGC, -4.35%

Weed, -4.58%

was down 4%.

Aleafia Health shares

ALEAF, -8.31%

ALEF, -6.94%

was down 5% and Organigram was down 9%.

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