This article originally appeared on Grizzle, which PotNetwork is thrilled to be partnering with to bring you occasional features highlighting everything you need to know in the marijuana stock market. Scott Willis is the co-founder and head of research at Grizzle. Grizzle provides critical money analysis and insights for topics that matter to millennials. For more in-depth analysis of marijuana, crypto, and investing, check out grizzle.com.
The German government is making sure the domestic cannabis market develops slowly and is taking unusual steps in the financial markets to make sure the industry isn't able to put on too much political pressure.
On July 30th Heineken, through its Lagunitas beer brand, launched the first mainstream cannabis-infused beer, Hi-Fi Hops and it's flying off the shelves in California dispensaries.
Heineken may be the first, but with Molson Coors recently entering the cannabis drinks business, it’s only a matter of time until your local dispensary is fully stocked with an assortment of infused and cannabis brewed beer.
Epidiolex, the maker of the first government-approved epilepsy therapy derived from cannabis, will charge $35,000 a year for patients to take the drug, a price much higher than buying cannabis oil directly from a licensed producer.
Epidiolex is the first US-approved pharmaceutical drug made from Cannabis, but will most definitely not be the last.
Clearstream, a major clearing broker for the German stock exchange, is no longer barring German investors from buying all cannabis companies. Companies involved in medical marijuana can now be purchased
Marijuana stocks had a slight bounce back this week up 1.2 percent, but are still up only 2.5 percent from the yearly low they reached on July 26th. Cannabis stocks are still looking for a new catalyst to raise investor expectations, but legalization alone is currently not enough.
Dilution earlier in the year from M&A and capital raises is putting some serious pressure on the stock prices of some larger producers, coupled with a risk-off attitude among cannabis investors.
Even with all of the positive momentum on legalization, the stocks are down seven percent since the recent bottom in April. Retail investors are still waiting for a rebound in stocks leading up to legalization which could happen for a few weeks just before the October 17 legalization date with some follow through into the end of the year due to a shortage of product, but it's looking like this is going to be a long summer of lackluster performance.