The North American Marijuana Index skyrocketed on Monday, gaining 13.06 points for a 5.21 percent increase as cannabis stocks jumped on the news of Cronos Group Inc.’s (NASDAQ:CRON) (TSX-V:CRON) uplisting to the Nasdaq exchange last week. Trading was solid on both side of the border, with the United States Marijuana Index gaining 3.06 percent and the Canadian Index rising an impressive 7.07 percent on Monday.
Meanwhile, investors on Wall Street breathed a small sigh of relief on the news that House Speaker Paul Ryan pushed back on President Trump’s threat to set tariffs on steel and aluminum imports. The President’s announcement last week sent stock prices tumbling. The Dow Jones Industrial Average was up 1.37 percent on Monday, with the S&P 500 and the Nasdaq both in the black as well. Canadian stocks also had their best day in weeks, as investors up North saw President Trump’s announcement on tariffs as a negotiating tactic in ongoing NAFTA negotiations. Standard & Poor's/TSX Composite Index rose 156.69 points on Monday.
“Being on the Nasdaq lends the company legitimacy that many others in the marijuana market simply cannot match. Not to mention that being the first and only company that enjoys this privilege will mean that for as long as it maintains that advantage, CRON stock is likely to benefit.” -Stephen Karmazyn, Profit Confidential
Horizons Marijuana Life Sciences ETF (HMMJ.TO) was up $1.02 per share on Monday, an increase of 5.51 percent. The fund closed out the day at $19.53 per share. The Evolve Marijuana ETF rose 5.73 percent to close the day at $20.49 per share.
Winners and Losers
Aurora Cannabis Inc. (TSX:ACB) (OTC:ACBFF) rose 5.22 percent on lower than average trading, closing the day at $8.66 per share… Canopy Growth Corporation (TSX:WEED) (OTC:TWMJF) jumped 10.633 percent on higher than average trading volume, to close at $24.917 per share… InMed Pharmaceuticals, Inc. (CSE:IN) (OTC:IMLFF) climbed 22.73 percent on higher than average trading volume to end Monday at $1.13 per share.
Abattis Bioceuticals Corp. (CSE:ATT) (OTC:ATTBF) fell 8.27 percent on Monday on lower than average trading volume, closing the day at $0.2774 per share… CLS Holdings USA, Inc. (OTC:CLSH) dropped 6.42 percent on lower than average trading volume to close at $0.70 per share… Freedom Leaf Inc. (OTC:FRLF) lost 40.43 percent on higher than average trading volume, ending Monday at $0.0028 per share.
Federal Cannabis Tax Revenue
New Frontier Data reports that as the legalized cannabis industry continues to grow, the creation of new businesses and jobs means a new flow of tax revenue for the federal government. Federal tax revenue from the marijuana industry is estimated to be $2.9 billion and is expected to grow to $6.7 billion by 2025.
Moreover, according to New Frontier Data, over 200,000 jobs currently exist in the legalized weed industry today, and that number is expected to grow to 630,000 industry-specific jobs by 2025. With all of those tax-paying employees, the federal government stands to collect somewhere around $44 billion between 2017 and 2025.