Cannabis stock report: Another down day for pot stocks as industry looks to move past last year’s vaping crisis
The week in cannabis stocks closed out with a whimper as The North American Marijuana Index closed on a down note once again on Friday. The Index lost 1.62 points, falling to 181.64. It was bad news all around for cannabis investors, with The United States Marijuana Index falling 0.90 points down to 49.69, while The Canadian Marijuana Index fell 1.62 points down to 181.64.
Major markets tumbled again to close out the week. The NASDAQ fell to 10,793.28, a loss of 116.99 points or 1.07 percent. Meanwhile, the NYSE fell as well, dropping down to 12,833.56 for a loss of 114.88 points or 0.89 percent.
According to a recent Marijuana Business Daily report, it looks like cannabis stock investors may have something to be happy about. The site notes that almost a year after the vaping pandemic caused by EVALI, sales are on the rebound, and customers are heading for the legal market. Arnaud Dumas de Rauly, co-founder and CEO of New York-based vape manufacturer The Blinc Group, told Marijuana Business Daily that the vaping scare turned customers away from illicit market products.
“It made consumers realize that you can’t just buy any cannabis vaping product,” he told their site. “You can’t go to the black market.”
EVALI not only caused a mini-public health scare last year but also turned consumers off of vaping products en masse. Marijuana Business Daily now reports that sales have turned around and are even doing well in light of COVID and the current economic downturn.
“We’ve seen tremendous bounce back from the vape crisis,” Sammy Dorf, chief growth officer and co-founder of Verano Holdings, told their site. “Business is extremely strong.”
He continued: “We haven’t seen a change in the purchasing pattern of our patients or customers due to the pandemic.”
Most notable about the whole EVALI situation was the fact that the issue was more of a problem in states without licensed, legalized cannabis operations. The Society for the Study of Addiction compiled a report recently showing which states were hit the hardest.
“We believe the bigger lesson here is that the data clearly indicate that there were fewer cases of lung illnesses and injury in states where legal, regulated cannabis products were available,” Steve Fox, strategic adviser to the Cannabis Trade Federation, told Marijuana Business Daily. “In fact, the lowest rates of incidence were in Colorado, Washington and Alaska – three of the first four legal states – with Oregon and Nevada close behind.”
Moreover, as the Society’s report noted, “these results suggest that EVALI cases did not arise from e-cigarette or cannabis use per se, but rather from locally distributed e-liquids or additives most prevalent in the affected areas.”
Cannabis stock winners and losers
Aleafia Health Inc. (AH:CA) gained $0.03 per share to hit $0.53 for an increase of 6.00 percent. C21 Investments Inc. (CXXIF) rose to $0.643, a gain of $0.023 per share or3.71 percent. cbdMD Inc. (YCBD) jumped up to $2.29 for an increase of $0.08 per share or 3.62 percent.
TILT Holdings Inc. (TLLTF) fell down to $0.26 for a loss of $0.025, equal to 8.77 percent. Indus Holdings Inc. (INDXF) fell $0.10 per share down to $1.09 for a loss of 8.40 percent. Green Growth Brands Inc. (GGBXF) fell down to $0.025, a decrease of $0.002 per share or 7.41 percent.
CBD worth $5.3 billion
Number crunchers Research and Markets put out a new report titled "Global Cannabidiol (CBD) Oil Industry Report 2020," which re-evaluates the value of the global CBD oil market. According to a recent statement they write, “the global market for cannabidiol (CBD oil) should grow from $967.2 million in 2020 to $5.3 billion by 2025, at compound annual growth rate (CAGR) of 40.4% for the period of 2020-2025.”
Furthermore, the company notes in a statement, “the global CBD market is anticipated to grow at a strong rate over the forecast period owing to the growing adoption of CBD-based products for treating various medical conditions.”
In other cannabis stock news…
Cannabis sales hit $232 million in Canada in July, according to a new report from Statistics Canada. Sales grew 15 percent sequentially and 116 percent year-over-year.
Famed cannabis attorney Rob Corry, who was essential in helping to pass Amendment 64 in Colorado, is facing legal troubles of his own. According to Westword, he faces “two bond-revocation beefs for which warrants have been issued, a date in Denver County Court over a bizarre July 2019 sword fight and alleged violation of a protection order, and two cases out of Iowa stemming from a misdemeanor domestic-violence arrest.”
The cannabis industry is finally becoming serious about accountability, racial diversity, and social justice.