Cannabis stock report: Pot stocks fall again as Congress attempts to fix nation’s CBD issues
Cannabis stocks should have stayed home for a few more days after the long holiday weekend as The North American Marijuana Index fell on Tuesday, dropping 1.36 points down to 106.54. It was bad news all around as investors in the US and Canada saw little to celebrate. The United States Marijuana Index fell 0.36 points down to 50.69, while The Canadian Marijuana Index lost 2.68 points down to 189.41.
The NASDAQ took a nosedive as well on Tuesday, falling 465.44 points down to 10,847.69 for a 4.11 percent loss, while the NYSE lost 218.57 points, falling to 12,698.57 for a 1.69 percent loss.
What little good news there was came from Congress, as Reps. Kurt Schrader (D-OR) and Morgan Griffith (R-VA) put together a bipartisan effort to allow CBD and other hemp-derived compounds to be sold as dietary supplements. Called the “Hemp and Hemp-Derived CBD Consumer Protection and Market Stabilization Act of 2020,” the new bill would help clear up much of the confusion that has held back the CBD industry since the passing of the Farm Bill in 2018.
For those living under a rock, the Food and Drug Administration has promised to put together a regulatory framework for the CBD industry but instead has relied on vague warning letters for the past year, stifling the industry’s progress. According to language in the proposed bill, “cannabidiol derived from hemp, and any other ingredient derived from hemp shall be lawful under the Federal Food, Drug and Cosmetic Act (21 U.S.C. 301 et seq.) as a dietary ingredient in a dietary supplement.”
“Hemp was historically an important crop for Virginia farmers, and dietary supplements made from it do not possess dangerous addictive qualities,” stated Griffith in a press release. “Nevertheless, the current state of regulation creates confusion about its legal uses. I joined this bipartisan bill to provide certainty for hemp farmers that their crop may find legal uses.”
The new bill received the immediate support of the U.S. Hemp Roundtable, an industry lobbying group.
“However, public announcements by the FDA questioning the legality of ingestible hemp-derived products have hindered the progress of the industry and put at risk the livelihoods of many hemp farmers,” noted the US Hemp Roundtable in a statement. “Not only did the lack of clarity spell economic disaster, but also resulted in a lack of regulations around quality, leaving consumers unprotected.”
The group expanded on their thoughts on Twitter, stating,” Hemp Supporters! There’s never been a more urgent opportunity to support #CBD on Capitol Hill! Today, hemp heroes @RepSchrader (D-OR) + @RepMGriffith (R-VA) introduced The Hemp and Hemp-Derived CBD Consumer Protection and Market Stabilization Act of 2020: The Schrader/Griffith bill would ensure that #hemp-derived CBD, and other non-intoxicating hemp ingredients, could be lawfully marketed as dietary supplements.”
Cannabis stock winners and losers
Green Growth Brands Inc. (GGBXF) gained $0.0024 per share up to $0.0259 for an increase of 10.21 percent. Delta 9 Cannabis Inc. (DN:CA) rose $0.03 per share up to $0.58 for a gain of 5.45 percent. Zenabis Global Inc. (ZENA:CA) jumped up $0.005 per share up to $0.105 for a gain of 5.00 percent.
Aurora Cannabis Inc. (ACB) fell $0.99 per share down to $7.52 for a loss of 11.63 percent. Planet 13 Holdings Inc. PLNHF dropped $0.1741 per share down to $3.1359 for a loss of 5.26 percent. Acreage Holdings (ACRGF) fell $0.14 per share down to $2.645 for a loss of 5.03 percent.
New boss in charge at Aurora Cannabis
Aurora Cannabis (ACB) announced the appointment of Miguel Martin as Chief Executive Officer, effective immediately. According to a statement, he’s a 25-year consumer packaged goods industry veteran. Martin joined Aurora in July 2020 as chief commercial officer and was previously CEO of Reliva.
"In his short time at Aurora, Miguel has demonstrated decisive leadership," said interim CEO Michael Singer in a statement. "Miguel is a highly experienced executive with an exceptional track record of performance in a number of consumer products categories. After an extensive search which included evaluation of many highly-respected candidates, Miguel stood apart with both strong commercial and cannabinoid sector expertise, as well as his passion for Aurora's success."
In other cannabis news…
Village Farms International, Inc. (NASDAQ: VFF) (TSX: VFF) will acquire all of Pure Sunfarms' shares that it doesn’t currently own, according to a statement. They entered into a definitive purchase and sale agreement with Emerald Health Therapeutics, Inc to acquire 36,958,500 common shares of Pure Sunfarms.
There are problems in Illinois as Gov. J.B. Pritzker has been urged to halt the licensing process due to the “‘orchestrated injustice’ of application process.”
Medical Marijuana Inc. subsidiary Kannaway and their Japanese division announced their best revenue month ever for August 2020.