Canadian Public Cannabis Companies Finally Hit a Wall | CashCropToday
0 Shares 76 Views

Canadian Public Cannabis Companies Finally Hit a Wall

February 5, 2018
76 Views

Millions worth of small cap investor’s money has been pouring into the Canadian public cannabis sector, bringing companies evaluations, like Aurora Cannabis (TSE: ACB) and Canopy Growth Corporation (TSE: WEED), into the billions of dollars. This recent surge is most likely the result of Canada’s announcement by Justin Trudeau, the country’s prime minister, announcing his plan last year to legalize recreational cannabis in July 2018.

Cannabis companies in Canada have begun to show signs and attempts to monopolize the sector, most recently noted was the Aurora Cannabis billion dollar deal to acquire CanniMed Therapeutics (TSE: CMED).

Unfortunately, recent investors saw a massive sell off this past week due to a recently released statistics by the Canadian government which found the price per gram of cannabis in the country to be as low $6.85. To investors this limits the amount of revenue companies involved in the sale of cannabis can generate which has caused a chain reaction through public companies involved in the space.  This caused Aurora’s stock price dropped 17%, Canopy Growth Corp saw their stock fall more at 15%, and the overall sector dropped by 19%. This has caused most companies in the Canadian sector to see a new first low for 2018.

You may be interested

MedMen Begins Construction of Cannabis Cultivation and Manufacturing Facility in California
Growers
4 views
Growers
4 views

MedMen Begins Construction of Cannabis Cultivation and Manufacturing Facility in California

Sam Rosenberg - May 24, 2018

Med Men Enterprises has begun construction on a large scale cultivation and manufacturing facility in Desert Hot Springs, California. The new facility is expected to become operational…

Canopy Growth Corp. to Begin Trading on New York Stock Exchange Today
Market Watch
3 views
Market Watch
3 views

Canopy Growth Corp. to Begin Trading on New York Stock Exchange Today

Sam Rosenberg - May 24, 2018

Canopy Growth Corporation (TSX: WEED) announced this morning that the company is expected to begin trading on the New York Stock Exchange (NYSE) this morning under the ticker…

Colorado Passes Bill to Allow Public Companies to Invest into Cannabis  Businesses
Politics
7 views
Politics
7 views

Colorado Passes Bill to Allow Public Companies to Invest into Cannabis Businesses

Sam Rosenberg - May 23, 2018

Colorado has just passed a House Bill 18-1011 which will allow publicly trade companies in the U.S. to invest and hold medicinal or recreational cannabis cultivation, processing,…

Leave a Comment

Your email address will not be published.

Most from this category

%d bloggers like this: