The North American Marijuana Index fell with mixed results on Tuesday, as even the passage of Canadian Bill C-45 did little to spare pot stocks from U.S. President Donald Trump’s escalating trade war with China. As Canada celebrated the final legislative hurdle to cannabis legalization, with only royal assent standing in the way, global markets were rattled as rhetoric turned into reality with the White House threatening continued retaliation for the already retaliatory tariffs imposed by China earlier this week. In all, President Trump proposed another 10 percent tariff on $200 billion worth of goods from China, sending U.S. pot stocks tumbling downwards.
Following the recent passage of Bill C-45 in the House of Commons, minus a series of amendments added on by the Senate, the bill went back to the Red Chamber, where observers were unsure of how that body would vote. In the end, the bill passed by a vote of 52-29, with two Senators abstaining, setting the stage for legal cannabis sales to begin in September.
It’s been too easy for our kids to get marijuana - and for criminals to reap the profits. Today, we change that. Our plan to legalize & regulate marijuana just passed the Senate. #PromiseKept
— Justin Trudeau (@JustinTrudeau) June 20, 2018
"I'm feeling just great," said Senator Tony Dean, in an interview with CBC News. "We've just witnessed a historic vote for Canada. The end of 90 years of prohibition. Transformative social policy, I think. A brave move on the part of the government."
Conservatives in the Senate were less joyed over the bill’s passing, with some perturbed that the House of Commons ignored amendments allowing provinces to ban home-grown marijuana and creating a public registry of investors in cannabis companies. Others, who were opposed to the bill from the start, predicted doom and gloom for the country. According to CBC News, Prime Minister Justin Trudeau and his cabinet will now choose a date for legal marijuana sales to begin.
Meanwhile, Wall Street took a hard turn downwards as President Trump’s trade war continued to escalate. In fact, global markets all took a hit on Tuesday as news of Trump’s proposed tariffs on China spread. The Dow Jones Industrial Average is back in the red for the first time this year.
"Investors are waking up to the idea that all the rhetoric on trade could be more than just a negotiating tactic," said Emily Roland, head of capital markets research at John Hancock Investments in an interview with Reuters.
The Dow Jones Industrial Average fell 287.26 points, or 1.15 percent, to close out the day at 24,700.21, while the S&P 500 fell 11.18 points, or 0.40 percent, to end the day at 2,762.57. Finally, the Nasdaq Composite lost 21.44 points, or 0.28 percent, to finish Tuesday at 7,725.59.
The Horizons Marijuana Life Sciences Index ETF (HMMJ.TO) rose CAD$0.33 per share, or 1.88 percent, to close out the day at CAD$18.95 and the Evolve Marijuana ETF (SEED.TO) rose CAD$0.12 per share, or 0.70 percent to finish out the day at CAD$17.27.
On The Farm With Future Farms
Future Farms Technologies Inc. (CSE:FFT)(CSE:FFT.CN), the Canadian holding company with numerous U.S. assets is touting its construction of marijuana farms in various locales. The company announced last Thursday the latest construction milestones for their marijuana farms in Massachusetts and Rhode Island.
In Attleboro, Massachusetts Future Farms has entered the next phase of development with the procurement of bids from general contractors. Meanwhile, Future Farms has completed the demolition of its Providence, Rhode Island facility, which allows them to commence the beginning of the build-out in earnest. They hope to lease the space to a local cultivator, building on plans to bring marijuana production to the northeast. Due to the proximity of both projects, Future Farms has coordinated efforts to maximize efficiencies among suppliers, says Chief Project Manager Derek Ross.
"Southeastern Massachusetts and Providence, Rhode Island are traditionally underserved areas in the New England cannabis ecosystem," said Ross in a statement released last Thursday. "We are now positioned to make a significant contribution to a part of the country struggling to keep up with supply demands, especially as Massachusetts progresses towards adult use and Rhode Island contemplates licensing twelve additional dispensaries, potentially leaving both states very unprepared from a supply perspective. We expect to change that landscape in a few short months."
Future Farms expects to break ground in Attleboro in the first week of July.
Cronos Group Inc. (NASDAQ:CRON) (TSX:CRON) subsidiary Cronos Australia Pty Ltd. received a medicinal cannabis Manufacture License by the Australian Office of Drug Control… CannaRoyalty Corp. (CSE:CRZ) (OTCQX:CNNRF) retained Canaccord Genuity Corp. for a private placement… MedReleaf Corp. (TSX:LEAF) reported financial results for the fourth quarter and year ending 2018.
Cannabis Legalization In The U.K.?
Now that Canada has all but passed cannabis reform into law, officials in the U.K. are beginning to look into whether or not that country could be next. It all stems from the cases of two young children with severe forms of epilepsy who were denied a chance to use medical cannabis to treat their seizures. Watch a report on the issue below: