The cannabis penny stocks market is a depressing sight today. Across the board, many cannabis penny stocks are down between 3%–8% and the worst part is that there doesn’t seem to be any major reason why.
Cannabis Penny Stocks See Red
Perhaps, this is the calm before the storm? Cannabis penny stocks are expected to skyrocket to new highs when adult-use legalization kicks off in Canada on October 17th. Are we seeing a grace period here in the run-up to this?
To showcase the damage we will look at Namaste Technologies Inc. (TSXV:N) and Auxly Cannabis Group (TSXV:XLY).
Cannabis Penny Stocks: Namaste Technologies
Without a doubt, Namaste is one of today’s biggest cannabis losers. It is currently down 7.76%.
It’s a disappointing turn of events as the weeks prior saw Namaste make impressive gains. On September 24th, the stock reached its all-time high of $3.74 and the company was aiming at a NASDAQ listing in the coming months.
A unique ‘sales only’ license granted by Health Canada was credited with that stock explosion. But since then, N stock has steadily declined for no specific reason.
At the time of writing, Namaste stock rests at $2.15 per share, which begs the question, will Namaste ever make it to the NASDAQ?
Cannabis Penny Stocks: Auxly Cannabis Group
This stock is a funny one. No penny stocks have roller-coastered as much as Auxly stock in the past week. And all this despite a lack of company news for nearly two weeks.
The lastest Auxly news was released on September 20th, where it announced it had completed a $7,500,000 equity investment in FSD Pharma Inc. (CSE:HUGE). The news sent shares soaring 30% in a single day.
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Since then, the company has been quiet, and its stock receded. However, the activity with this stock is interesting. As the old adage goes, “It’s better to be talked about, than not talked about” and it seems investors are definitely “talking” about this stock. XLY shares are swapping hands regularly, which suggests it is a wanted stock.
The US Market Shows Green!
Things are sad on the Canada Exchange, but there is a light at the end of the cannabis penny stocks dark tunnel in the shape of the US’s GB Sciences (OTCQB:GBLX). Up only 2.18% at the time of writing, it’s not a huge gain, but it’s a hint of green amidst a sea of red!
Featured Image: Depositphotos/© Wavebreakmedia
