Cannabis Stock Report: Experts Remain Bullish As Marijuana Markets Continue Downward Trend
The North American Marijuana Index continued its downtrend on Tuesday, falling 14.64 points for a 5.95 percent decline. The Index closed the trading day at 231.38, though many experts continue to be bullish on the market. Broken down by country, The United States Marijuana Index lost nearly four percent of its value on Tuesday, while the Canadian Index fell over six percent.
Meanwhile, it was another tumultuous day on Wall Street, as stocks in the U.S. saw their most substantial decline in three weeks following comments by Federal Reserve Chairman Jerome Powell that stoked fears of rate increases in investors. The Dow Jones Industrial Average fell 299.24 points, the S&P 500 dropped 35.32 points, and the Nasdaq Composite dropped 91.11 points. Up north, the Toronto Stock Exchange’s S&P/TSX composite index also fell, losing 43.511 points on Tuesday.
"He said it's his impression the economy was getting stronger, which subtly gave the indication that he was going to raise his personal forecast for four rate hikes this year," said Michael O'Rourke, chief market strategist at JonesTrading in an interview with Reuters.
The ETFMG Alternative Harvest ETF (MJX) slid 1.92 percent on Tuesday, closing the day at $31.59 per share. Horizons Marijuana Life Sciences ETF (HMMJ.TO) fared worse, falling 4.15 percent to close out the trading day at $17.07 per share.
Winners and Losers
MCIG Inc. (MCIG) was up 7.14 percent on Tuesday… Solis Tek Inc. (SLTK) closed the day at $1.30 per share, a gain of 5.69 percent… MariMed Inc. (MRMD) broke even on Tuesday, ending the day at $1.05 per share’...
Abcann Global Corporation (ABCN:CA) tumbled 17.14 percent… Emerald Health Therapeutics Inc. (EMH:CA) fell to $4.53 per share, a 10.65 percent decline… Newstrike Resources Ltd. (HIP:CA) slid 10.59 percent.
News and Notes
Namaste Technologies Inc. (CSE:N) (OTCMKTS:NXTTF) announced the closing of a $40.25 million bought deal financing. “We are very confident with the roll-out of our strategy as it relates to NamasteMD and Cannmart as well as our plans to launch similar models throughout our global networks of consumer databases and websites,” said Sean Dollinger, President, and CEO of Namaste in a statement.
Abattis Bioceuticals Corp. (CSE:ATT) (OTC:ATTBF) announced a deal to acquire a 90 percent ownership interest in Gabriola Green Farms Inc. Gabriola, a privately held company, based in British Columbia has applied for a license to produce under Health Canada’s ACMPR.
“Partnering with Shoppers Drug Mart, Canada's largest pharmacy retailer, is yet another validation of the scale and maturity of our company, and of the demand for Aurora's medical cannabis. Through our wholly owned subsidiary Pedanios, Aurora already supplies a network of more than 2,000 pharmacies in Germany, and this strategic relationship with Shoppers will further expand our market presence and profile as one of the world's leading medical cannabis brands." - Aurora Cannabis (TSX:ACB) CEO Terry Booth, on the company’s supply deal with Shopper’s Drug Mart, announced earlier today.
GW Pharmaceuticals plc (NASDAQ:GWPH) announced cannabidiol (CBD) received orphan drug designation from the European Medicines Agency. “GW‘s decision to evaluate Epidiolex in patients with tuberous sclerosis is based on findings from the physician-led Epidiolex expanded access program where the results of this open-label use of Epidiolex in children with TS have been very encouraging,” stated Justin Gover, GW’s Chief Executive Officer.
"This up listing to NASDAQ is a major corporate milestone and reflects the significant progress we have made in strengthening our corporate governance and expanding our global footprint. We believe this will increase long-term shareholder value by improving awareness, liquidity, and appeal to institutional investors." - Mike Gorenstein, CEO of Cronos Group (TSXV:MJN) on the company’s announcement of their uplisting to the Nasdaq on Tuesday.
In The Weeds
The AP reports on American Indian tribes cut out of California’s adult-use recreational market. The tribes have discussed establishing their own legal pot market that would operate outside of California’s regulatory framework. Proposals are being circulated among the tribes that call on Governor Jerry Brown to work with them.
“Everyone agrees conceptually there should be an even playing field, a level playing field,” remarked state Assemblyman Rob Bonta, a Democrat involved in the negotiations in an interview with the AP.
“Resigning the plaintiffs to the petitioning administrative process is tantamount to a death sentence for those patients who need cannabis to live. The time has come for the courts to abandon decades-old precedent, notched with obsolete legal technicalities, and catch up with modern science and contemporary principles of constitutional law.” attorney Michael S. Hiller on yesterday’s decision by U.S. District Judge Alvin Hellerstein to dismiss Washington v. Sessions on procedural grounds.
According to Green Market Report, Israel’s Prime Minister Benjamin Netanyahu is being forced into a decision on cannabis exports following his earlier demurral over the issue in an apparent attempt to curry favor with U.S. President Donald Trump. Some reports claim the country’s medical cannabis industry could be worth as much as $1 billion by 2021.
Watch here in the United Kingdom as Newport West Labour MP Paul Flynn urged medical cannabis users to break the law last Tuesday. The remarks were in response to the Home Office, the ministerial department responsible for immigration, security and law and order, who had recently denied the request by the family of six-year-old Alfie Dingley, from Kenilworth in Warwickshire to allow the boy to take medical cannabis.