Cannabis investors stuck their heads in the sand on Monday as The North American Marijuana Index took a steep fall. The Index fell to 101.06, losing 3.34 points. It was a bad day all around as The United States Marijuana Index fell to 48.58 for a loss of 1.31 points, and The Canadian Marijuana Index lost 7.14 points to 176.14.
Meanwhile, the NASDAQ continued its downward streak, hitting 10,778.80 for a loss of 14.48 points or 0.13 percent, while the NYSE hit 12,563.20 for a loss of 270.36.
Investors turned their hopes to the international markets once again, as The Guardian reported that medical cannabis companies have now been given the okay to hit the London stock exchange by the UK’s financial regulator. However, recreational cannabis firms will continue to be banned from the exchange.
According to the UK’s financial regulator, even companies that sell recreational cannabis in countries like Canada, where it is now legal, will be banned from the exchange due to the UK’s Proceeds of Crime Act. The Act considers income from the sale of cannabis outside of the country to be “criminal property.”
Still, medical cannabis companies both within the country and overseas were given the go-ahead, barring regulators' approval. While it’s not automatic that overseas companies would be able to float on the exchange — the law doesn’t automatically grant them rights due to some nuances — it does appear to be a good start.
“For medicinal cannabis and cannabis oil companies with overseas activities, the company will need to satisfy us that their activities would be legal if carried out in the UK,” the FCA said, according to The Guardian.
“We will also need to understand the legal basis of the company’s overseas activities, for example the nature of the local licensing and the licences the company holds.”
Despite the complexities and nuances, The Guardian reports that many in the cannabis industry celebrate this move.
Roby Zomer, co-founder and managing director of the pharmaceutical firm MGC was one of those celebrating. He told The Guardian that “MGC started the process of looking to list on the London markets over a year ago. During that time we have struggled with the pace of the process but have continued to push forward, with a view to being one of the first UK-listed medical cannabis companies.”
“Given the news today, we will again push ahead with our listing ambitions for the business, which will support its future growth and offer investors the opportunity to access a significant and growing opportunity,” he continued.
Cannabis stock winners and losers
TILT Holdings Inc. (TLLTF) rose $0.0256 per share up to $0.2856, a gain of 9.85 percent. Terra Tech Corp. (TRTC) gained $0.0036 per share up to $0.077 for an increase of 4.90 percent. GrowGeneration Corp. (GRWG) hit $16.65 for an increase of $0.68 per share or 4.26 percent.
Sundial Growers Inc. (SNDL) fell $0.0284 per share down to $0.2355, a loss of 10.76 percent. HEXO Corp. (HEXO:CA) fell down to $0.93 for a loss of $0.09 per share or 8.82 percent. Zenabis Global Inc. (ZENA:CA) fell $0.005 per share down to $0.06, a decrease of 7.69 percent.
Sugarbud goes with Alberta Gaming, Liquor & Cannabis
Sugarbud Craft Growers Corp. (TSXV: SUGR) announced on Monday that the company had signed a supply agreement with Alberta Gaming, Liquor & Cannabis. The company’s Craft Cannabis Collection will now be sold throughout Alberta by private retailers and on AlbertaCannbis.org.
“We are absolutely thrilled that Sugarbud's Craft Cannabis Collection will now be available in our home province of Alberta,” said Sugarbud's CEO, John Kondrosky, in a statement. “With over 500 retail locations now operating in the province, AGLC has built an impressive and expansive retail cannabis network that continues to lead the country in terms of consumer access to legal cannabis.
He continued: “As an Alberta-based licensed producer, building a strong supply relationship with AGLC is critical to our success and will allow Sugarbud to efficiently fulfill orders and satisfy consumer demands.”
In other cannabis stock news…
A judge in Texas lifted the state’s ban on smokable hemp products until next year, allowing time for an industry challenge to be heard in court.
Tommy Chong is still fighting the good fight. “my way of fighting unjust incarceration is that no matter where I am — at a dinner party with Republicans or very wealthy people, for example — I always mention the fact that I was in prison,” he told SF Weekly. “I bring it up all the time. It’s a badge of honor for me, and more importantly, it creates a conversation.”
Folks in Massachusetts are tired of licensing delays. One company has now sued the state over the matter for $1.2 million.