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.
The index continued to outpace the overall market in August, rising 2.9% to 93.48:
The index has declined 6.5% 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 August, the index included 16 members, with 5 posting double-digit gains and 5 declining by more than 10%, with a median return of 1.0%:
The three strongest stocks included urban-gro (NASDAQ: UGRO), Agrify (NASDAQ: AGFY) and Innovative Industrial Properties (NYSE: IIPR). urban-gro, which uplisted earlier this year, has gained 155% in 2021. Agrify, an IPO from earlier this year, was the leader during the prior two months. REIT Innovative Industrial Properties, which closed at an all-time high, has rallied 34% this year thus far.
The three weakest names during June included AgriForce Growing Systems (NASDAQ: AGRI), Greenlane Holdings (NASDAQ: GNLN) and GrowGeneration (NASDAQ: GRWG). AgriForce is a recent $5 IPO that has lost over half its value. Greenlane has declined 36% thus far in 2021, while GrowGeneration has dropped 20%.
For September, we are removing AgriForce Growing Systems, Forian (NASDAQ: FORA) and KushCo Holdings (OTC: KSHB), leaving the index with 13 members. We had erroneously included AgriForce, not realizing it fails to meet the minimum quarterly revenue required of $1 million. Forian failed this month to meet the minimum average daily value traded of $500K. KushCo Holdings has merged with Greenlane as of 8/31.
In the next monthly review, we will summarize the performance for September 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.