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StaffStaffJuly 12, 2018
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7min9870

Healthy Cannabis Market on the Rise Sees Q2 Index Rises 20% after Q1 fell 21%

New York City – July 12, 2018 /AxisWire/ The Green Market Report (GMR), the cannabis industry’s most trusted source for credible in-depth financial and economic reporting, today released its 2018 Cannabis Company Index Q2 Summary Report. The report can be downloaded at GreenMarketReport.com/Reports.

The GMR Index follows the trading activity of 30 selected public cannabis companies that denote market dominance. After falling 21.9% in the first quarter, based on uncertainty surrounding the Department of Justice (DOJ) and Attorney General Jeff Sessions decision to rescind the Cole Memo, the GMR Index found that the industry made a healthy recovery. On average, the GMR Index gained 20% in the second quarter of 2018.

In Q2, investors felt that the risk to investing in cannabis had been tempered once it was clear that the DOJ was more talk than action when it came to punishing those in the cannabis industry. In addition, conservative Republicans at both the federal and state level began to demonstrate a willingness to shift away from their hardline anti-cannabis stances of the past and confirmed a willingness to discuss a pathway towards legalization.

However, the most encouraging move of all was the Federal Drug Administration’s (FDA) approval of GW Pharmaceuticals cannabis-based drug Epidiolex. Epidiolex is derived from cannabidiol, or CBD, an active, non-psychoactive chemical compound in marijuana that reduces the frequency of seizures. Per the FDA’s approval of the CBD-based drug, the FDA has 90 days to reschedule CBD down to Schedule II or III from Schedule I.

“The second quarter of 2018 has been much kinder to cannabis industry stocks as share prices recovered from the sell off at the beginning of the year. Bigger and stronger cannabis companies are listing on the Canadian markets and on major U.S. stock exchanges which are giving investors more selection and choice,” stated Debra Borchardt, CEO of Green Market Report.

The best performing stock in the GMR Index was CV Sciences Inc. which rose 238% as it reported strong revenue increases and retired debt. This rise was a pattern followed by many of the other stocks in the GMR Index. Solid performances were rewarded by shareholders picking up more stock.

The biggest loser in the GMR Index was Isodiol International with a loss of 55% in its share price. Many of the Index’s poorest performing stocks are some of the earliest cannabis stocks in the market. Early investors, likely growing weary of stock dilution, are turning to new and stronger entrants into the cannabis publicly traded stock market.

Like these investors, the GMR Index is opting to include new names that have much to offer versus older companies that haven’t been able to deliver as promised. For example, 22nd Century Group primarily focuses on tobacco and not cannabis so it was removed; Invictus MD Strategies was removed due from the GMR Index due to poor performance.

The Green Organic Dutchman and MedMen Enterprises both show that despite setting out on differing business objectives, their ability to raise millions in the market has put them in a position to experience continued growth. While The Green Organic Dutchman is pursuing an international strategy, MedMen is focusing on the high trafficked tourist locations in the U.S. GMR is looking forward to watching these companies grow and mature.

“Looking ahead to the third quarter, expectations are running high that a change of some sort could be imminent in regards to the classification of cannabis in the Controlled Substances Act.” added Borchardt. “While we can’t predict what that change will be, it will easily be an improvement over the current situation. Also, there are a number of strong cannabis companies in the IPO pipeline, meaning that Q3 will be a tremendously exciting time as they enter the market.”

About Green Market Report:

The Green Market Report (GMR) is headquartered in the Financial District of New York City with an office in Los Angeles. GMR is poised to be the center for trustworthy business, financial and economic news and intelligence. The site offers coverage on financial matters including news briefs on business, cultivation, and extraction, cannabis company stock prices, and wholesale cannabis pricing. For more information, please visit www.greenmarketreport.com or email info@greenmarketreport.com. Follow us on Facebook, Instagram and Twitter @GreenMarketRpt.

Communications Contact:

Cynthia Salarizadeh

856-425-6160

cynthia@kcsa.com

 


Jack SmithJack SmithApril 19, 2018
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6min12530

The Green Market Report Cannabis Company Index fell sharply in the first-quarter of the year, dropping 21.9 percent, with only a few components ending the period in a positive manner.

Much of the concern came from an increasingly hostile regulatory environment, as U.S. Attorney General Jeff Sessions rescinded the Cole Memorandum. While the full results of the rescinded memorandum have yet to amount to anything more than tough talk out of Washington, it has put a damper on the sector in the short-term.

There’s also been a cooling of the market in Canada as well, despite extreme optimism from investors that the country would legalize cannabis for adult use. Instead, Prime Minister Justin Trudeau and his team have hinted that recreational use could start in the fall, as opposed to July, as had been previously thought.

Much of the downfall seen in the U.S-based stocks occurred due to a correction in the so-called “California trade,” where investors were buying shares of companies hand-over-fist in anticipation of California’s legalization that began in January. The rollout of the legalization has been bumpy, with legal sales taking a back seat in some cases to black market sales due to heavy taxation in some cities and counties; as such, some cities, such as Berkeley, Calif., which recently cut the tax it placed on sales of legalized marijuana to 5 percent, down from 10 percent.

Signs Of Hope

Despite the negative headwinds seen throughout the broader cannabis sector, there were a few standouts in the index, most notably MariMed (MRMD), which gained 46 percent. The company, which participates in the red-hot Nevada market with its Kalm products, was able to raise $2.8 million in the quarter, pay off some existing debt and develop facilities in Maryland and Massachusetts.

Other companies that performed well in the index were Invictus MD Strategies (IVITF) and Kush Bottle (KSHB), which gained 16 percent and 14 percent, respectively. The only other company that had a positive return for the first three months of 2019 was Canopy Growth, which squeaked out a 0.92 percent gain.

Losers Really Struggle

Losers in the index really struggled, including Axim Biotechnologies (AXIM), which plunged 65 percent. The company is working on a chewing gum formula for medical marijuana, but investors are currently uneasy about the company, at least in the short-term, as evidenced by the 71 percent decline seen in its shares over the past year.

Other losers include Namaste Technologies (NXTTF), which dropped 50 percent, WeedMD (WDDMF) and Aohria (APHQF), both which fell 44 percent, respectively.

Changes To The Index

Green Market Report announced changes are being made to the index, adding Hiku Brands (DJACF), removing Corbus Pharmaceutical (CRBP), as Green Market has made the determination the company does not have “much real exposure to cannabis.”

Though Hiku Brands offers promise for the future, thanks to its DOJA, Tokyo Smoke and Van der Pop brands, the company has not issued a financial statement since significant changes took place in recent months, with the last coming in Sept. 2017 and no revenue to speak of.

Brighter Days Ahead?

Despite the negative headwinds seen in the first-quarter, there are some recent positives for investors to grasp onto, most notably Sen. Majority Leader Mitch McConnell (R.-KY) introducing a bill that would remove hemp from the controlled substance list, potentially paving the way for it to be a cash crop similar to tobacco or cotton.

In addition, former Speaker of the House John Boehner joined the board of directors of cannabis company Acreage Holdings. And just last week, Senator Cory Gardner (R.-CO.) said that he had a telephone agreement with President Donald Trump to “protect states that have legalized marijuana,” including California, Colorado, and Nevada.

In total, 9 states have legalized marijuana for recreational use. The majority of states allow marijuana to be used for medicinal purposes, while just Idaho, South Dakota, Nebraska and Kansas prohibit the use of cannabis.



About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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