This was another brutal week for cannabis stocks, with all major ETFs posting double-digits losses. Over the last five trading days:
- The ETFMG Alternative Harvest ETF (NYSE: MJ) lost 13.7%.
- The AdvisorShares Pure Cannabis ETF (NYSE: YOLO) tumbled 17.4%.
- The Cannabis ETF (NYSE: THCX) dropped 16.4%.
- The Amplify Seymour Cannabis ETF (NYSE: CNBS) shed 17.8%.
- The SPDR S&P 500 ETF Trust (NYSE: SPY) closed the period down 2.2%.
“Certainly the Covid19 virus is affecting some cannabis companies, especially the vape producers who experienced supply chain interruptions from China,” said Debra Borchardt, CEO of Green Market Report. “However, if sales remain strong at dispensaries, this could be a big test for the claim that the cannabis industry is recession-proof. If that’s the case, this becomes a strong argument to get back into select stocks.”
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A long list of cannabis events have also been cancelled, postponed, or transitioned to a digital or online format. Check out Leafly’s list of cancelled events.
Meanwhile, the U.S. House Veterans Affairs Committee passed two pieces of legislation concerning cannabis: one directing the Veterans Administration to start research on marijuana, and one allowing V.A. doctors to fill out medical marijuana recommendations.
Michigan announced it would be phasing out the sale of marijuana by caregivers to regulated operators in three steps, with a cutoff date of Sept. 30. Starting Oct. 1, medical cannabis caregivers won’t be allowed to sell products to licensed businesses, the state regulatory agency said.
Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) and TerrAscend Canada Inc., a subsidiary of TerrAscend Corp. (CSE: TER) (OTC: TRSSF), signed a loan financing arrangement worth CA$80.5 million ($58.59 million) pursuant to a secured debenture. In addition, Storz & Bickel, a cannabis vaporization technology company owned by Canopy, launched a new web-based, Bluetooth-enabled app, which allows iOS and Android users to regain remote control of their vaping experience, following the suspension of vaping apps by Apple.
Harvest Health & Recreation Inc. (CSE: HARV)(OTC: HRVSF) finalized the initial tranche of a non-brokered private placement offering of up to $100 million of multiple voting shares at a price of $141 per share. The Tempe, Arizona-based company said it obtained proceeds from a group of investors in the total amount of about $56 million, issuing 397,162.42 multiple voting shares.
Hightimes Holding Corp., the publishing and events company behind High Times Magazine, Dope Magazine and the High Times Cannabis Cups, has received approval for trading under the ticker symbol “HTHC.”
Planet 13 Holdings (OTC: PLNHF) is entering the wholesale market after strong performances of their own in-house brands.
Psychedelic medicine company Mindbloom opened an upscale psychedelic therapy center on New York City’s 5th Avenue. Meanwhile, Mind Medicine (OTC: MMEDF) (NEO: MMED) formed a technology evaluation, acquisition and scientific integrity board committee focused on further developing the company’s clinical trial pipeline and IP portfolio of psychedelics.
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