Cannabis stocks saw a bright start to the week, with broad-based gains across North American markets.

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, was up 1.3% to 250.7 points by Monday's close. The Horizons Marijuana Life Sciences Index ETF was up 2.5% to C$19.41. The OTCQX Cannabis Index was down 1.7% at 771.4 points.

Buds

Tilray Inc (NASDAQ:TLRY) shares soared Monday, up 12.1% at US$43.51 in New York on news that it plans to acquire its largest stockholder.

Green Growth Brands Inc. has signed a deal to open more than 70 new CBD stores at Brookfield Properties' shopping centres throughout the United States.

The Ohio-based cannabis company says these stores will sell CBD-infused personal care products under its existing Seventh Sense banner and under a new brand called Green Lily.

The chief executive of Brookfield Properties' retail group, Sandeep Mathrani, says it is the company's job to bring in retail offerings that consumers desire, and this includes Green Growth's CBD products.

Green Growth currently has seven shops within Brookfield Properties' portfolio.

Cannabidiol or CBD is a non-intoxicating compound which can be derived from cannabis or hemp and has been touted for its health benefits.

Though the bulk of cannabis stock-mania to date has focused on Canopy Growth (NYSE: CGC ), Tilray (NASDAQ: TLRY ), Aurora Cannabis (NYSE: ACB ) and Cronos Group(NASDAQ: CRON ),arguably the most compelling pick in the bunch, Hexo (NYSEAMERICAN: HEXO ),  has been habitually overlooked.

A newcomer to pot stocks could be forgiven for thinking that this isn’t the right climate for risky assets, with cannabis feeling the pinch leading into the first week of June. Overall, May was a bad month for marijuana stocks in general, with the Horizons Marijuana Life Sciences ETF dumping in excess of 13% of its value, while most cannabis stocks saw percentage losses in the double digits.

What happened

Shares of Tilray (NASDAQ:TLRY) tumbled nearly 26% last month, according to data from S&P Global Market Intelligence, following the cannabis company's first-quarter results.

So what

Tilray's revenue surged 195% to $23 million. Management credited the gains to the legalization of adult-use recreational marijuana in Canada, Tilray's acquisition of hemp-based food producer Manitoba Harvest, and the growth of the international medical cannabis market. 

When he decided to take up farming part-time six years ago, Roy Renneberg (Welder ’90) did a very Alberta thing and planted hay.

Still employed in the construction industry, the native of Cudworth, Sask. grew up on a farm and hay seemed like a comfortable choice. But when Ottawa announced plans to legalize cannabis and update rules around industrial hemp, its non-stoner sister plant, a seed of inspiration was planted.

Hemp was an unknown, but after doing some research Renneberg was intrigued with the prospect of a crop that could produce revenue from every part of the plant – seeds, flowers, leaves and stalks.

“I thought, this could get very interesting and that’s where we went with it,” he says.

Marijuana stocks have pulled back sharply in recent weeks, as concerns over their ability to post profitable earnings and their sky-high valuations grow. It is easy to understand these fears with many such as Cronos Group (TSX:CRON)(NASDAQ:CRON) having made massive gains over the last year.

It is beneficial to look at a Company’s adjusted operating income to help determine the profitability of the Company.

This measure helps show the amount of profit the company can generate from operations. The higher the adjusted operating income, the more likely the company is, or will be, profitable. Today we have identified four Canadian cannabis stocks that have displayed high adjusted operating income.

In another big week for cannabis, a committee of the Delaware House of Representatives passed a bill to legalize recreational marijuana; Democratic presidential candidate Sen. Kirsten Gillibrandunveiled a cannabis legalization plan that includes expungement and social equity measures; and South Africa got its first CBD store. New York Gov. Andrew Cuomo said he doesn’t think there are enough votes in the state Senate to push recreational cannabis legalization forward.

Construction is underway on a $2-million cannabis oil extraction facility in the Elgin Innovation Centre (EIC), located in the former Imperial Tobacco plant on John Street in Aylmer.

Motif will occupy a 2,000-square-metre space that will employ up to 50 workers when it’s operational in the fall, say the company’s founders.

Motif will be the 25th business to set up shop in the 93,000-square-metre complex left vacant after Imperial Tobacco moved out in 2008.

Company co-founders Mario Naric, a former engineer with Imperial Oil, and Ian Haase, the former director of student entrepreneurship at Western University, explored a handful of locations in London before finding the perfect fit in the Elgin Innovation Centre.