It’s been a disappointing week for cannabis penny stocks. If we look at the index today, most of our companies are in the red.
However, Cannex Capital (CSE:CNNX) is in the green; in fact, at the time of writing, it’s the only cannabis penny stock in the green😱. Cannex is up 5%, and this seems like a major feat, considering how bleak the market looks elsewhere, especially where cannabis penny stocks are concerned.
Emerald Health Therapeutics (TSXV:EMH) is down -9.53% and Auxly Cannabis Group (TSXV:XLY) is down – 9.73. MedMen Enterprises (CSE:MMEN) is today’s biggest loser, down a whopping 10.11%.
Is there a reason? Does the cannabis industry need one?
Cannabis Penny Stocks: Red and Dead
Holding a candle to the wind is Cannex Capital, which is up, as stated, nearly 5% and selling for $0.84 CAD. Hats off to Cannex—it has been steadily climbing this week. On Monday, November 5th, Cannex opened at $0.66. At its current selling price (if it can stay up there before the market closes), the cannabis penny stock is gaining nearly 30% on the week.
Vancouver’s Cannex Group “provides a specialized approach and offers comprehensive solutions for emerging companies in the industry.” In essence, the company is in the business of helping other cannabis companies to navigate their way through this industry from cultivation through to facilities leasing, distribution, and retail.
This week’s cannabis penny stock growth could easily be attributed to the company’s latest press release.
Cannex has acquired a 10% founding ownership interest in Soma Group Holdings. The deal will cost it $750,000 USD. New Zealand-based cannabis start-up Soma focuses on science-based cannabinoid R&D and production. The acquisition will be the first international strategic move for Cannex.
And Cannex’s board member Greg Marshall will be leading up the Soma team as he makes a move to become its founding director.
It’s an interesting move for Cannex, and one that I can understand is exciting investors. International expansion suggests long-term growth, and it simply means external revenue streams. It’s a small start but an important one, and it’s enough to keep this cannabis penny stock in the green while everyone else is red.
Featured Image: Depositphotos/© St.Wolf