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Marijuana Stock Report: Marijuana Index Gains In April Because John Boehner Saw The Light

The North American Marijuana Index fell on Wednesday, as pot stocks retreated following the overly-bullish reactions to Aurora Cannabis Inc.’s (TSX:ACB) acquisition of MedReleaf Corp. (TSX:LEAF). Some experts consider the deal to be marijuana’s apex moment; cannabis stock investors last chance to cash out at a profit before the Asgardian foundations fall to Surtur’s doom. Oversaturation and a low bar to entry will likely lower and, in turn, commoditize weed prices, according to The Street, lowering the bar for profitability in the sector.

The Index fell 1.26 points, or 0.49 percent, to close out the day at 257.15, with The United States Marijuana Index falling 0.02 percent and The Canadian Marijuana Index falling 1.59 percent.

Bucking the trend of the past few months, The North American Marijuana Index reported a gain of three percent for April, with all of the turnaround coming from U.S. pot stocks following the announcement of former House Speaker John Boehner’s appointment to the Board of Acreage Holdings. In fact, The United States Marijuana Index gained 25 percent in the four days following the announcement, pulling back to record a 19 percent increase overall for the month. Conversely, The Canadian Marijuana Index lost nine percent in April.

General Cannabis Corp. (CANN) gained 96 percent for the month, with CV Sciences Inc. (CVSI), and Surna Inc. (SRNA) following close behind. Hiku Brands (HIKU:CNX) saw the most significant loss in Aprill, falling 36 percent.

(c) The Marijuana Index www.marijuanaindex.com

Meanwhile, Wall Street gained on Wednesday on the backs of retail and technology stocks, with the small-cap Russell 2000 hitting a new record. However, North Korea’s recent decision to pull out of talks with the South and subsequent threats to do the same with the U.S. has investors concerned United States-China trade negotiations on the horizon.

"I think corporate earnings have been remarkably strong," said David Carter, chief investment officer at Lenox Wealth Advisors in an interview with Reuters. "The concern is really more about the future and decelerating growth."

"The general consensus seems to be we'll come to some sort of trade agreement. But it may be choppy until we get there," he continued, in reference to China.

The Dow Jones Industrial Average rose 62.52 points, or 0.25 percent, to close out the day at 24,768.93, while the S&P 500 gained 11.01 points, or 0.41 percent, to end the day at 2,722.46. Similarly, the Nasdaq Composite added 46.67 points, or 0.63 percent, to close out the day at 7,398.30.

The Horizons Marijuana Life Sciences Index ETF (HMMJ.TO) fell CAD$0.25 per share, or 1.42 percent, to end the day at CAD$17.37, while the Evolve Marijuana ETF fell CAD$0.29 per share, or 1.69 percent to end the day at CAD$16.90.

The 90-Day Namaste Challenge

In an odd move by Namaste Technologies (CVE:N) the company is asking (begging?) shareholders to take a 90-day pledge to either hold or increase their position. Between May 14 and May 18, shareholders can sign the pledge, which grants them access to a special “party” being held by the company should they follow through with the said pledge. Founders Sean Dollinger and Kory Zelickson have agreed to hold their shares for the same period of time.

The Namaste 90-Day Pledge

“Anyone who sticks with their pledge until the end will be invited to a party thrown by Namaste at an undisclosed location. All you’ll have to do is get there, Namaste will be taking care of the rest. See you there,” reads the online form, which, so far, has 11 pages worth of participants. Adding to the bizarre nature of the move, insider Sefi Dollinger went and sold 20,000 shares on day one of the pledge.

The company’s reasons for doing this are still unclear, as is the legality of such a pledge.

Quick Hits

Maricann Group Inc. (CSE:MARI) (OTCQB:MRRCF) entered into a non-binding Letter of Intent to acquire Malta-based Medican Holdings Ltd… Aphria Inc. (TSX:APH) (OTCMKTS:APHQF) signed a supply agreement with Colombia-based pharmaceutical import and distribution company Colcanna SAS… Hiku Brands Company Ltd. (CSE:HIKU) is offering eligible holders of eight percent unsecured convertible debentures of Hiku an early conversion opportunity.

Sunniva Campus Update

Sunniva Inc.(CNSX:SNN) a medical cannabis company, is building an advanced greenhouse in Cathedral City, California. “Sunniva Campus represents a substantial step forward for the cultivation, production, and distribution of cannabis products to meet the needs of patients in California,” said Dr. Anthony Holler, CEO, in a statement late last year. Watch below as Sunniva gives an update on the project:

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