Following up on our recent discussion of how cannabis investors have embraced publicly traded ancillary companies, New Cannabis Ventures launched its seventh proprietary index, the Ancillary Cannabis Index at the end of March.
After declining 4.6% in April and 2.5% in May, the index rose 3.3% in June. In July, it dipped 5.4% to 90.85, outperforming the overall cannabis sector:
The index has declined 9.2% since its introduction at the end of March:
The Ancillary Cannabis Index includes companies that provide goods and services to cannabis operators. Each qualifying company must trade at a minimum of $0.50 per share with a minimum average daily trading value of $500K at the time the index is rebalanced each month. Additionally, members of the index must generate at least $1 million per quarter from its ancillary operations.
During July, the index included 15 members, with 3 posting double-digit gains and 8 declining by more than 10%, with a median return of -14.9%:
The three strongest stocks included Agrify (NASDAQ: AGFY), Turning Point Brands (NYSE: TPB) and Innovative Industrial Properties (NYSE: IIPR). Agrify was the leader for the second consecutive month and far outpaced the other members, rising 60.5% and helping to reduce the overall index decline.
The three weakest names during June included iPower (NASDAQ: IPW), KushCo Holdings (OTC: KSHB) and WM Technology (NASDAQ: MAPS). iPower is a recent IPO, while WM Technology went public through the SPAC process. KushCo Holdings was one of the strongest companies in June.
For August, AgriForce Growing Systems (NASDAQ: AGRI) joins, leaving the index at 16 members. In the next monthly review, we will summarize the performance for August and discuss any additions or deletions. Be sure to bookmark the page to stay current on ancillary cannabis company stock price movements within the day or from day-to-day.