LEGALIZATION COVERAGE

Canada’s decision to legalize the recreational use of cannabis has allowed the rise of an emerging investment market. The cannabis public sector has become one of the most followed industries for investors. 

As such, the Investing News Network brings investors a collection of stories on the critical transition and its impact on the public markets.


Cannabis stocks took a dive on Wednesday (October 17), the same day for official legalization of adult-use marijuana in Canada.

Canadian producers such as Canopy Growth (NYSE:CGC,TSX:WEED), HEXO (TSX:HEXO), and Aurora Cannabis (TSX:ACB) all noticed declines in value on Wednesday. Respectively, each stock declined 4.38, 5.95 and 2.93 percent in value.

The Horizons Marijuana Life Science Index ETF (TSX:HMMJ), started the day with a drop and reached a day-low of C$22.79.

The index, which holds nearly 40 pot stocks, picked up the rest of the day to finish with a 2.10 percent drop and a closing price of C$24.30.

The Evolve Marijuana ETF (TSX:SEED) also dropped in value on Wednesday, seeing a 1.98 percent loss and a closing price of C$1.98. This index counts with 20 holdings in the cannabis space.

An alternative ETF from Horizons, the Horizons Emerging Marijuana Growers Index ETF (AQN:HMJR), which exclusively holds cannabis companies with a market capitalization between C$50 million and C$500 million, declined 2.33 percent to a price of C$9.21.

A couple of outliers in Wednesday’s drop among leading cannabis companies were Aphria (TSX:APH) and CannTrust Holdings (TSX:TRST) which, despite the losses around the market, actually saw increases throughout the day.

Aphria closed the trading session with a 3.80 gain and a price of C$19.40, while CannTrust took a marginal 1.26 percent gain to finish with a closing price of C$13.67.

“The Cannabis Act, which comes into effect today, cements Canada’s global leadership in this rapidly expanding industry,” Vic Neufeld, CEO of Aphria, said in a statement. This is an historic moment as we march into the future of cannabis.”

Performance of US stocks from Canadian companies

The move from Canadian cannabis companies launching stocks on US premier exchanges, such as the New York Stock Exchange (NYSE) or NASDAQ, has attracted investors below the border to gain exposure into the space.

Tilray (NASDAQ:TLRY), which garnered the attention of the market with the company reaching a market cap of over US$10 billion, joined in with the overall sector and faced a 6.40 percent drop to its stock to US$148.25 per share.

US Election 2020 and Cannabis

 
Investing in cannabis? Read what experts have to say about cannabis and the US Election!
 

Shares of Cronos Group (NASDAQ:CRON,TSX:CRON) fell 4.38 percent, representing a loss of US$2.32. The stock closed the trading session with a price per share of US$50.69.

Canopy’s NYSE stock, similar to its Toronto stock, dropped in value as the investor sentiment gravitated towards sales on Wednesday.

The stock opened the day with a US$2.76 decline in value. During the trading session, the stock went down 4.38 percent and held a value of US$50.69 during after hours trading.

Investor takeaway

Wednesday’s losses had been predicted, albeit not a total crash, but a potential decline for cannabis stocks instead of a catalyst leading to gains in the public market.

Everett Knight, portfolio manager with Matco Financial, told the Investing News Network (INN) he expected to see a lot of retail money selling.

Knight said the cannabis play remains an early one and expects the next few quarters to deliver more answers on the entire sector.

“Cannabis investors will have to become more sophisticated and not paint the whole industry with same brush to make better returns.”

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

US Election 2020 and Cannabis

 
Investing in cannabis? Read what experts have to say about cannabis and the US Election!
 

Revive Therapeutics Ltd. (“Revive”) (CSE: RVV, USA: RVVTF), a specialty life sciences company focused on the research and development of therapeutics for medical needs and rare disorders, is pleased to announce the appointment of Dr. Joel Moody, MD, MPH, DTM&H, as a medical and clinical advisor to the Company to assist in the expansion of clinical studies in Canada and the clinical data analysis on the ongoing U.S. Food & Drug Administration (“FDA”) Phase 3 clinical trial (the “Study”) to evaluate the safety and efficacy of Bucillamine in patients with mild-moderate COVID-19.

“We would like to welcome Dr. Moody as a medical and clinical advisor to our team and we look forward to his contributions in our ongoing FDA Phase 3 clinical study as well as expanding our COVID-19 studies in Canada,” said Michael Frank, CEO of Revive. “Dr. Moody’s experience in clinical epidemiology, data analysis and research are key to our FDA Phase 3 study as we gather clinical data from patients enrolled.”

Keep reading... Show less

– FinCanna Capital Corp. (CSE:CALI) (OTCQB:FNNZF), based in Vancouver, BC today announced that Andriyko Herchak, CEO, will present live at VirtualInvestorConferences.com on December 3 rd .

Keep reading... Show less

First-of-its-kind trial in Canada will pave the way for expanded MDMA-assisted treatment to support patients with posttraumatic stress disorder

Keep reading... Show less

Multi-year partnership designates BioSteel as new official sports drink of Philadelphia 76ers team, Training Complex, and the presenting partner of 76ers Training Camp

BioSteel today announced a multi-year deal with the Philadelphia 76ers, making the sports hydration company the official sports drink of the team. BioSteel will also serve as a partner of the Philadelphia 76ers Training Complex, and the presenting partner for 76ers Training Camp, which begins next week.

Keep reading... Show less

Achievements with Scalability and Compatibility Pave Way for Next Phase of Advancement

Codebase Ventures Inc. (“Codebase” or the “Company”) (CSE:CODE)(FSE:C5B)(OTCQB:BKLLF) is excited to announce that the Company’s holding, Arcology, a cluster-computing powered AI blockchain ecosystem with unlimited scalability, has updated its working roadmap in response to its Testnet 1.0 results

Keep reading... Show less