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Cannabis Stock Report: Marijuana Markets Rebound Despite Wall Street’s Down Day

The North American Marijuana Index bounced back on Wednesday, climbing 4.74 percent to close out the trading day at 242.35. The gain is welcome news for spooked investors worried that speculation is fueling an industry burdened by the weight of federal law. Cannabis stocks on the United States Marijuana Index gained almost three percent on Wednesday, while up north the Canadian Marijuana Index climbed over 6 percent.

(c) The Marijuana Index www.marijuanaindex.com

Looking to the broader markets, cannabis stocks outperformed Wall Street on Wednesday, as investors closed out one of the most abysmal months in recent trading history. Early morning gains were erased in late-day trading, with energy and health sectors falling the hardest. The S&P 500 fell 30 points, a 1.1 percent decline, to close the day at 2,713.  Both the Nasdaq and the Dow Jones Industrial Average dropped as well, losing 0.8 percent and 1.5 percent respectively. Canada’s main index saw its most substantial drop in three weeks due in part to falling oil prices. Volume on the TSX on Wednesday was at around 260.27 million shares.

"Investors are still trying to digest where the Fed is going to be between now and year-end, and [Jerome Powell Chair of the Federal Reserve] has given it a hawkish tilt," said Bucky Hellwig, senior vice president at BB&T Wealth Management in an interview with The Globe and Mail.

Solactive’s North American Marijuana Index gained 61.06 points, up 4.37 percent, while the Emerging Marijuana Growers Index climbed 17.46 points for a 2.42 percent gain.

The Horizons Marijuana Life Sciences ETF (HMMJ.TO) climbed $0.88 per share, or 5.16 percent to close out the day at $17.95 per share. Evolve Marijuana ETF (SEED.TO) also gained over 5 percent on Wednesday to close out the day at $18.70 per share.

Winners and Losers

Cronos Group Inc. (MJN:CA) closed at $11.79 per share, a gain of 21.92 percent… Abcann Global Corporation (ABCN:CA) climbed 17.24 percent to close at $2.04 per share… Cannabis Wheaton Income Corp. (CBW:CA) gained 16.43 percent, closing the day at $1.630 per share…

Maricann Group Inc. (MARI:CNX) fell 20.88 percent on Tuesday... Packaging company Kush Bottles Inc. (KSHB) closed out Wednesday at $4.25 per share, a decline of 6.59 percent…. CannaRoyalty Corp. (CRZ:CNX) fell 2.31 percent to end the day at $3.39 per share...

News and Notes

Aurora Cannabis Inc. (TSX:ACB) (OTCQX:ACBFF) announced on Wednesday the receipt of final regulatory approval for its long-fought-for acquisition of CanniMed Therapeutics (TSX:CMED). The company received a No Action Letter from the Competition Bureau in Canada, representing the final regulatory hurdle towards completing the deal.

Namaste Technologies Inc. (CSE:N) (OTCMKTS:NXTTF) announced on Tuesday the closing of a $40 million-plus bought deal financing. “We’re very pleased to have closed this bought-deal financing which leaves the Company in a strong cash position and prepared for continued growth. 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, company CEO.

“Following our recent acquisitions of Citiva and GrowHealthy, we are excited to close in on the new dispensary locations and begin their respective build-outs. Through Citiva in New York and GrowHealthy in Florida, we have a significant presence in two of the largest markets on the East Coast.” - Hadley Ford, CEO of iAnthus Capital Holdings, Inc. (CSE:IAN) (OTCQB:ITHUF) on the announcement of the signing of two new dispensary leases, one in Brooklyn, New York, and one in Tampa, Florida,

LiveWire Ergogenics, Inc. (OTC:LVVV) announced on Wednesday the receipt of a cultivation license/ nursery permit for its Coachella, California production facility. Facilities totaling 41 acres will be built on the site, split into two parcels of eight and 31 acres respectively.

GrowLife, Inc. (PHOT) filed a provisional patent, the company announced on Wednesday, for a process to make building materials out of repurposed waste plant materials for use in cultivation centers. “This proprietary process will provide the entire industry with a sustainable solution to a problem that is only going to get worse as demand for plant-based products increases which has barely been identified and will have a huge impact on profitability of cultivators in the future,” remarked Marco Hegyi, CEO of GrowLife.

In The Weeds

Leafly reports on a new development from Canada in the efforts to legalize marijuana this summer. According to the site, Canada may be in violation of three U.N. treaties when and if they legalize cannabis. Those treaties are the Single Convention on Narcotic Drugs (1961), the Convention on Psychotropic Substances (1971) and the Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988).  All three of the treaties call for countries to ban recreational cannabis.

Prime Minister Justin Trudeau By 2017 Canada Summer Games[CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons

“International law is not an esoteric doctrine. It’s not faraway thing that only nerdy academics think about,” Steven Hoffman, a professor in the Faculty of Health and Osgoode Hall Law School at York University in Toronto told Leafly. “It governs international interaction at almost every level, from mailing holiday cards to the functioning of the internet. If we undermine international law, it takes away from our credibility as a country—and it becomes politically more difficult to criticize other countries for violating international law.”

“We just don’t care as much about marijuana as we used to. Instead, several team officials said they are putting far more emphasis on domestic violence and other severe criminal acts. A player that fails a combine drug test for pot will still be flagged, and his draft value will diminish. Just not as much as it did in previous years […] As society has shifted its views toward marijuana, including legalizing it in several states, and become less tolerant of violent abusers, the NFL is slowly reflecting that societal shift.”  - A longtime NFL official to Bleacher Report on the league’s evolving views on marijuana use.

Politicians in Idaho have moved forward with legislation allowing state residents to use CBD oil along as it is prescribed by a doctor or other licensed medical professional. According to The Cannabist, the Idaho House passed the measure 59-11. It must now pass the Senate before moving to the Governor’s desk for signature.

Quick Hits

Watch as CBC News reports on a new study from Edmonton researchers showing that medical cannabis may not have the beneficial effects that scientist initially thought. News of the findings is not deterring users who still believe the drug does help with a host of ailments.

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