Cannabis is now officially legal in Canada as of today. You would imagine such news would put cannabis penny stocks in the green. But surprisingly not. Across the board, stocks are red.
The Supreme Cannabis Company Inc. is down -5.31% and Liberty Health Sciences Inc. is down -2.03%. So what’s happening? The word still remains that cannabis penny stocks are expected to explode in 2019.
Let’s dive on in.
Cannabis Penny Stocks: The Supreme Cannabis Company (TSXV:FIRE)
Yesterday saw FIRE stock begin to decline. It looked very positive from last Friday—the company had climbed to $2.22. But after yesterday’s poor day, this cannabis penny stock has slipped even further and is currently valued at $1.98.
This is surprising for two reasons. The first is the simple fact that cannabis legalization should have spurred on stocks across the board… but it hasn’t. The second is even more baffling.
Supreme only last week announced a supply deal with Tilray (NASDAQ:TLRY). The company’s wholly-owned subsidiary, 7ACRES, has agreed to supply dried cannabis to Tilray Canada Ltd., a subsidiary of Tilray. The deal is estimated to be worth $12 million and will extend over 12 months.
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What’s not to love about this deal? Tilray is only one of the cannabis industry’s leading companies. It makes for a very cozy bedfellow for Supreme, so why aren’t investors excited?
Cannabis Penny Stocks: Liberty Health Sciences (CSE:LHS)
At the time of writing, LHS is down over 2%, selling at $1.45. But this is nothing when you look at what the company has achieved in a short time.
At the beginning of September, Liberty Health Sciences began soaring. In under two months, the company packed on over 50% in gains. Yes, it has lost some of those gains, but its position is still powerful.
The run seemed to be caused by this cannabis penny stock’s most recent quarter results. Liberty Health Sciences showed a 95% increase in sales revenue compared to the same period one year ago.
The company is also preparing to open seven new dispensaries by February 2019. It will add these to its four dispensaries and six delivery hubs in Florida.
Will we see cannabis penny stocks begin to show green again? If legalization can’t make it happen, what can!?
Featured Image: Depositphotos/© ra2studio
