Driven by the rise of the broader equity market last week, the Horizons Marijuana Life Sciences Index ETF (HMMJ), which tracks the North American Medical Marijuana Index, rose by 3.2%, while the ETFMG Alternative Harvest ETF (MJ) returned 4.0%. The S&P 500 Index rose 2.5%.
Despite the strengthening of the broader equity market, only two of the nine cannabis companies considered for our analysis have delivered positive returns. The Green Organic Dutchman (TGODF) (TGOD), which signed a cannabis supply agreement with the Ontario Cannabis Retail Corporation on February 8, rose by 10.1% between February 8 and February 15. TGOD was followed by Planet 13 Holdings (PLNHF) (PNTH), which has returned 9.1% during the same period.
Stocks in the red
Last week, Acreage Holdings (ACRGF) (ACRG-U) and Wayland Group (MRRCF) (WAYL) fell the most with their stock prices declining by 6.6% and 5.7%, respectively.
During the same period, the stock prices of Trulieve Cannabis (TCNNF) (TRUL), MedMen Enterprises (MMNFF) (MMEN), iAnthus Capital Holdings (ITHUF) (IAN), VIVO Cannabis (VVCIF) (VIVO), and Curaleaf Holdings (CURLF) (CURA) fell by 4.4%, 4.3%, 2.4%, 2.2%, and 0.1%, respectively.
Last week, the New York Daily News reported that the NYMCIA (New York Medical Cannabis Industry Association) asked MedMen Enterprises to leave the organization due to allegations of financial irregularities and racist and sexist remarks. The NYMCIA’s announcement about ending its association with MedMen led to a fall in MedMen’s stock price. Also, last week, MedMen completed the previously announced acquisitions of Kannaboost Technology and CSI Solutions, which are together referred to as “Level Up.”