Cannabis sector broadly moves higher after BofA report suggests sales spiking during COVID-19 

Cannabis stocks are trading in the green on Thursday following the release of a report that suggests that people are stocking up on cannabis​ amid the COVID-19 outbreak. Bank of America analyst Chris Carey said that sales of U.S. and Canadian cannabis are increasing over the past week, a sign that the pot sector may actually be a defensive play in current market conditions. Carey also states that Aphria may see its market share in Canada rise as its peers may struggle to move product. Carey boosted Aphria's rating to a 'buy' despite lowering his price target to $5 a share. 

Some pot dispensaries labelled as 'essential' during COVID-19 pandemic 

Cannabis dispensaries are being labelled as "essential businesses" as patients seeks ways to obtain medical marijuana amid the growing COVID-19 outbreak, according to a report by NPR​. The U.S. public broadcaster said that pot shops are allowed to remain open in San Francisco, Las Vegas and New York City alongside gas stations and grocery stories to support the public's needs as the coronavirus spreads nationwide. Some stores, however, are opting to shut down, partly due to the lack of available COVID-19 testing in some cities, one dispensary owner told NPR.   

Data company suggests consuming THC may hurt recovery from a COVID-19 diagnosis 

Could consuming cannabis accentuate side effects from a potential COVID-19 diagnosis? While there has yet to be any clinical trials of COVID-19 patients using THC, the impairing compound contained in the cannabis plant, one study showed viral loads of influenza increased when affected mice ingested THC, according to Aurelius Data​. The company, which manages medical data, suggests that the same may hold true for COVID-19 given how similar influenza is to the novel coronavirus. "The data from pre-human studies urge caution for these individuals in the face of the current viral epidemic," the company said in a statement. 

Village Farms shares fall after announcing $10M equity deal

Shares of Village Farms International are down as much as 12 per cent on Thursday after the company said it raised $10 million in an common share offering​. The company said it sold 3.1 million shares at $3.20 a share in the sale, which is earmarked for general working purposes. The deal, which Beacon Securities acted as underwriter, is expected to close around March 24. Village Farms recently struck a deal with Emerald Health to take a 57.4 per cent stake in cannabis producer Pure Sunfarms in a months-long ownership dispute. 

DAILY BUZZ

Cannabis Canada is BNN Bloomberg’s in-depth series exploring the stunning formation of the entirely new — and controversial — Canadian recreational marijuana industry. Read more from the special series here and subscribe to our Cannabis Canada newsletter to have the latest marijuana news delivered directly to your inbox every day.