Cannabis stock report: Mixed day for pot stocks as farmers out west struggle over land issues
It was a big day for Canadian cannabis investors even as the rest of the market stalled, with The North American Marijuana Index falling 0.78 points down to 106.12. US investors had a spate of bad luck on Thursday as The United States Marijuana Index fell 0.54 points down to 50.25, while up north in Canada, things were much brighter. The Canadian Marijuana Index gained 0.75 points up to 190.35.
Meanwhile, the NASDAQ took another turn for the worse, losing 221.97 points to hit 10,919.59, a loss of 1.99 percent. The NYSE tumbled as well, dropping down to 12,706.69, a loss of 179.11 points or 1.39 percent.
It turns out that even as the coronavirus pandemic becomes a boom for the cannabis industry, farmers and cultivators are paying the price. In a report out from Reuters, farmers state that there is now increased competition for land to grow the plant.
Leasable farmland is much harder to come by these days, according to the report. As Maud Powell, an associate professor in the Small Farms Program at Oregon State University, told Reuters, that’s “because cannabis farmers could pay so much more.”
“It’s like a land grab ... the green rush, they call it,” she told the Thomson Reuters Foundation.
The problem will only become bigger as more and more states legalize cannabis. For example, Reuters reports that “more than two dozen jurisdictions will have cannabis-related initiatives on the ballot” in California this November. With Grand View Research valuing the industry at $9 billion, the move to legalize doesn’t look like it will stop anytime soon.
The issue is one that’s really affecting those in rural areas, as urban landscapes prefer indoor grows. According to Reuters, Oregon, California, and the rest of the Pacific Northwest say the competition for land use is affecting their overall income.
It’s not only a problem for hemp farmers, either. Those who grow food crops or raise livestock find themselves caught in the middle of this land grab by hemp farmers. “The competition here is marijuana, hemp and wine,” said Southern Oregon livestock producer Angela Boudro to Reuters. “You can get drunk, high and pain relief, but don’t plan on eating.”
“Competition for land, especially last year, went through the roof,” she continued. “We had looked at purchasing a piece of ground, and the price that the hemp growers were willing to pay was phenomenally higher than we could ever pay with livestock.”
Cannabis stock winners and losers
Green Growth Brands Inc. (GGBXF) gained $0.0019 per share up to $0.0249, and increase of 8.26 percent. MariMed Inc. (MRMD) hit $0.16, an increase of $0.011 per share, or 7.38 percent. Cansortium Inc. (CNTMF) topped $0.34 on Thursday, a gain of $0.01475 per share or 4.53 percent.
Vireo Health International Inc, (VREOF) fell to $0.7654, down $0.0702 per share or 8.40 percent. iAnthus Capital Holdings Inc. (ITHUF) dropped to $0.065, a loss of $0.005 per share or 7.14 percent. KushCo Holdings Inc. (KSHB) decreased down to $0.53 for a loss of $0.04 per share or 7.02 percent.
Brush your teeth with CBD
Philadelphia-based Zelira Therapeutics Ltd (ASX: ZLD, OTCQB: ZLDAF) announced the release of their new CBD-infused oral hygiene products as part of a venture with USA-based dental care company SprinJene. Their first product, a toothpaste, is expected to launch by the end of the year.
“The SprinJene® team is excited about the partnership with Zelira Therapeutics and we look forward to the impact that our products will have in the oral care market,” says Dr. Sayed Ibrahim, CEO of SprinJene, in a statement. “Our collaboration to commercialize the most advanced hemp-derived cannabinoid-based oral care products expands our reach into new oral care markets where every person can access the daily benefit of using our products.”
In other cannabis news…
CV Sciences, Inc. (OTCQB:CVSI) launched a new line of dietary supplements with of CV Defense. It’s their second product launched under a new Immunity product line. The first was CV Acute in August.
Californians can now purchase cannabis from vending machines. The machines, launched by a company called Greenstop, serve four customers at a time.
Illinois screwed up their cannabis lottery so bad that legislators are calling for a moratorium until they can make it right.