The Global Cannabis Stock Index was beaten up in June, its 16th consecutive monthly decline. It closed at the lowest close ever as the index fell 23.1% to 14.76.
The weakness in the index follows a 26% decline in 2021 and has left the index down 55.1% thus far in 2022. For Q2, the drop was 47.8%.
The large decline has left the index below the 2020 closing low of 16.95 on March 18, 2020. The index is more than 91% below the early 2018 closing peak of 180.02
The strongest 4 names in June all rose or fell less than 6.3%:
- 22nd Century Group (NASDAQ: XXII): +17.0%
- Jazz Pharma (NASDAQ: JAZZ): +4.2%
- CEA Industries (NASDAQ: CEAD): +1.6%
- Cronos Group (TSX: CRON) (NASDAQ: CRON): -6.3%
22nd Century was boosted by news that the federal government has adopted standards of lower nicotine. Despite the gain, the stock is still down 18.8% in 2022. Jazz Pharma has gained 22.5% this year. CEA Industries priced an equity offering in February at $4.13 per unit and is now trading 69.5% lower and 74% lower than where the stock closed in December. Cronos Group is down 28.1% in 2022.
The 4 weakest names in June all declined by at least 43.0%:
- Leafly (NASDAQ: LFLY): -57.5%
- Hydrofarm (NASDAQ: HYFM): -49.5%
- Power REIT (NYSE American: PW): -44.4%
- TerrAscend (CSE: TER) (OTC: TRSSF): -43.0%
Leafly is now down 55.0% since its close as a SPAC at the end of 2021. Hydrofarm has lost 87.7% so far in 2022. Power REIT, a big gainer in 2021, has dropped 81.5% thus far this year. TerrAscend has pulled back 62.4%.
The bear market has created some challenges with maintaining this index. As of July 1st, there will be one additional member, the recent IPO Bright Green (NASDAQ: BGXX), but the index will lose 10 members as it falls from 35 names to 26. The decline happened because the prices were too low for three, including Akanda (NASDAQ: AKAN), Flora Growth (NASDAQ: FLGC) and Organigram (TSX: OGI) NASDAQ: OGI). The others that were removed didn’t meet the average daily traded value, which was reduced from $1 million per day to $800K. This included Agrify (NASDAQ: AGFY), Columbia Care (CSE: CCHW), (NEO: CCHW) (OTC: CCHWF), Goodness Growth (CSE: GDNS) (OTC: GDNSF), High Tide (TSXV: HITI) (NASDAQ: HITI), Jushi Holdings (CSE: JUSH) (OTC: JUSHF), Planet 13 (CSE: PLTH) (OTC: PLNHF) and Power REIT (NYSE American: PW).
We will summarize the index performance again in a month. You can learn more about the index members and the qualifications for inclusion by visiting the Global Cannabis Stock Index. A more complete analysis of the index is available at 420Investor.com. Be sure to bookmark the page to stay current on cannabis stock price movements within the day or from day-to-day.
New Cannabis Ventures maintains seven proprietary indices designed to help investors monitor the publicly-traded cannabis stocks, including the Global Cannabis Stock Index as well as the Canadian Cannabis LP Index and its three sub-indices. The sixth index, the American Cannabis Operator Index, was launched at the end of October 2018 and tracks the leading cultivators, processors and retailers of cannabis in the United States. More recently, we introduced the Ancillary Cannabis Index at the end of March 2021, reflecting the increasing number of publicly-traded companies providing goods or services to cannabis operators.
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