Cannabis stocks traded down this week, despite a series of financing announcements and other good news, including a new bill from Congress.
GrowGeneration Corp. (NASDAQ: GRWG) wants to raise $125 million via a public offering. The offering was then upsized to $150 million on Wednesday, offering 5 million shares at a price of $30.00 per share.
Weedmaps is going public via a merger with Silver Spike Acquisition Corp. (NASDAQ: SSPK), while LeafLink closed a $40 million Series C funding round led by Founders Fund.
“Money keeps flowing into the cannabis space as we saw the huge $1.5 billion valuation given to the Weedmaps deal with the Silver Spike SPAC. Not only that, GrowGeneration supersized its offering from $125 million to $150 million. Despite the inconsistent stock performance, there is still a big demand for investment in this industry,” Debra Borchard, editor in chief of Green Market Report, told Benzinga.
ETFMG Alternative Harvest ETF surpassed $1 billion in assets under management. The fund has been trading on NYSE for less than three years, being the first cannabis-focused ETF to list in the United States. Jason Wilson, ETFMG Cannabis Research and Banking, told Benzinga that “there are two key takeaways as it relates to MJ and the significance of achieving this milestone.”
The U.S. House of Representatives passed a bill to reduce barriers and broaden scientific research into medical cannabis. According to Marijuana Business Daily, the bill will also enable private manufacturing and distribution of cannabis exclusively for research demands.
Both the MORE Act and the Medical Marijuana Research Act are still waiting for a final decision in the Senate. Many experts in the space think there are slim chances for either of bill to win Senate approval, the report continued.
In South Carolina, Republican lawmakers prefiled legislation to allow for medical marijuana. Rep. Bill Herbkersman is the lead sponsor on the bill and attributes his support to his brother, who used cannabis to treat cancer-related symptoms.
Herbkersman says no one in South Carolina with a serious illness should have to circumvent the law to attain their needed relief.
"Waiting any longer will only add to the suffering that is experienced by those who are plagued with [a] debilitating illness," he voiced, citing the availability of cannabis in 36 other states as another driver.
In Mexico, the lower house opted to postpone the cannabis legalization bill debate to February 2021. This is the third time the current deadline has been extended, following earlier requests. Mexican senators passed adult-use cannabis legalization bill on Nov. 19, with an 82 to 18 vote.
Over the five trading days of the week:
- The ETFMG Alternative Harvest ETF (NYSE: MJ): lost 4.2%
- The AdvisorShares Pure Cannabis ETF (NYSE: YOLO): was down 4.3%
- The Cannabis ETF (NYSE: THCX): tumbled 7.9%
- The Amplify Seymour Cannabis ETF (NYSE: CNBS): fell 4.6%
- The SPDR …