Cannabis: Canadian producers struggle with market volatility – Shop Medical THC Website Ottawa Canada

This could be the fact that the calendar year is coming to an end. Or perhaps it is the recent volatility in stock prices in the cannabis sector that makes market observers wonder aloud about the future of the sector. In this still nascent industry, however, there are more questions than answers.

Over the past two weeks, stock prices have fallen substantially across the sector after earnings results from some of the largest companies have disappointed, creating a sense of discouragement among investors who are still optimistic about the viability of the stock. the industry in the long run. Then, from the middle of last week, the market picked up again and many companies saw their stocks rebound and show double-digit gains.

Canopy Growth (TSX 🙂 Corp. (NYSE: CGC), (TSX: WEED), Aurora Cannabis Inc. (NYSE: TSX :), (TSX: ACB) and Aphria Inc (NYSE: TSX :), (TSX: APHA) were the first to take flight, claiming the top three performances on the Toronto Stock Exchange last Wednesday. Canopy was up more than 16% on the day, Aurora gained 12.5% ​​and Aphria added a little over 5.5% to its valuation.

Canopy, Aurora, Aphria

Thursday, Hexo Corp. (NYSE: HEXO), (TSX: HEXO) had joined the rebound camp, marking an impressive gain of more than 35% on the day, followed by Aurora and Canopy which rose respectively 19% and 16% .

But Friday rolled, the movement turned in the opposite direction. Hexo dropped more than 15.5% that day, Aurora lost 13% and Canopy lost just over 9%. Monday, Canopy and Hexo tried to progress while Aurora aggravated his losses, but yesterday, the 3 joined in the red.

Volatility based on headlines

This recent volatility can be attributed to the headline reaction, which explains their short duration of impact. In the United States, news of the approval by the House of Representatives' Judiciary Committee of a bill to legalize marijuana at the federal level has largely contributed to the rise in stock prices over the past week.

This coincided with the announcement by the Ontario provincial government that it would overhaul the way retail marijuana licenses are distributed. But neither of these news comes with immediate change. There is still no clear timeline for federal legalization in the US, and regulatory changes for retail outlets in Canada's most populous province will not actually be achieved until the second half of 2020.

Yesterday, this is a new warning from the FDA against CBD, one of the Cannabis molecules, which has heavily weighed on the sector, as explained here.

Two US marijuana companies post profitable quarters

While Canadian-based cannabis companies face continuing ups and downs, US companies show that profitability seems easier to achieve south of the border.

Last week, Florida-based Trulieve Cannabis Corp (OTC: TCNNF) and Massachusetts-based Curaleaf Holdings Inc. (OTC: CURLF) reported better-than-expected quarterly results.

Trulieve, a medical cannabis grower with a market capitalization of US $ 1.32 billion, aims to operate 44 stores in Florida by the end of next month. In the third quarter, it achieved a turnover of 70.7 million US dollars, higher than the projected turnover of 65.6 million US dollars. Revenues increased 22% from the previous quarter. The company also reiterated its target of US $ 220 million for 2019 and projected it to be US $ 220-240 million.

Trulieve, Curaleaf

At Curaleaf, sales growth enabled the multi-state operator to post a 27% increase in total revenue. Earnings were US $ 9 million compared to a loss of US $ 3.2 million in the same quarter last year. Curaleaf is present in 12 states, operates 50 dispensaries, 14 culture sites and 13 processing centers.

Here’s what you want to know before visiting your local medical dispensary:You may require a physician’s recommendation, medical cannabis certificate, and/or whatever appropriate documentation is required by your state. Typically, you need to be 18 or older to qualify for a medical authorization, but exceptions could be made in some conditions for minors with particularly debilitating conditions. You will usually register with a medicinal dispensary. This is to keep your medical cannabis recommendation or certificate on file for legal and regulatory purposes. There’ll be a waiting room. This will be to control the circulation of product and patients, but a simple dividing wall gives patients solitude and direct one-on-one contact using a budtender to discuss medical problems. This process can assist budtenders and patients track effective medication in addition to have a living record of manufacturers and goods for future reference and follow-up. Medicinal dispensaries usually permit you to smell and analyze the buds prior to buy. This might differ from state-to-state.

DOES AN APPLICANT NEED MUNICIPAL APPROVAL BEFORE RECEIVING A RETAIL CANNABIS LICENSE? Yes, municipal approval is necessary before the AGLC will subject a retail cannabis license. Applicants must get in touch with their intended municipality to learn requirements concerning municipal retail cannabis laws, zoning requirements, land-use limitations, and location requirements regarding how close a retail store is into a provincial health care centre, school, or parcel of land designated as a college book.
Keep non-medical cannabis legal Adults that are 19 years or older are in a position to:Possess up to 30 gram of legal dried cannabis or the equivalent in their own person. Share up to 30 g of legal cannabis along with other adults in Canada. Purchase cannabis goods from a Yukon Liquor Corporation licensed merchant. Grow up to four crops per household. It’s illegal to provide non invasive cannabis to anyone below the age of 19 and also for anyone under the age of 19 to have any amount of anti inflammatory cannabis in Yukon.It is dangerous and illegal to drive while under the influence of cannabis or other intoxicants.