Cannabis Watch: We take a closer look at cannabis companies and how they performed in the markets for the day.
Today’s companies will be Cronos Group Inc. (TSXV:MJN) (OTC:PRMCF) and OrganiGram Holdings Inc. (TSXV:OGI) (OTCQB:OGRMF).
Cronos Group Inc.
Cronos Group produces and sells medical cannabis in the Canadian cannabis market. The company is headquartered in Toronto.
Cronos trades on several exchanges, in both the Canadian and American markets.
On the OTC market, Cronos closed the day at $7.01. This put the stock down $0.19, or 2.65%, from the previous closing price of $7.20. The day’s trading ranged between $6.81 and $7.21, compared to the 52-week trading which has ranged between $1.00 and $11.90.
Cronos closed at $8.89 on the TSXV, putting the stock down $0.29, or 3.16%, from the previous closing price of $9.18. The day’s trading ranged between $8.60 and $9.15, while the 52-week trading has ranged between $1.58 and $14.83.
In terms of percentage, the stock for Cronos Group performed a little better in the American market.
OrganiGram Holdings Inc.
OrganiGram Holdings is another medical cannabis producer in Canada, located in New Brunswick.
Trading on several exchanges, OrganiGram has a presence in the American as well as the Canadian cannabis spaces.
On the American side of things, OrganiGram closed at $3.21 on the OTC market. Today’s closing price put the company’s stock down $0.06, or 1.98%, from the previous closing price of $3.27. The day’s trading ranged between $3.14 and $3.32, while the 52-week trading has ranged so far between $1.35 and $4.56.
OrganiGram closed at $4.03 on the Toronto Stock Venture Exchange, putting it down $0.13, or 3.12%, from the previous closing price of $4.16. The day’s trading ranged between $3.98 and $4.20, compared to the 52-week trading that has ranged between $1.81 and $5.68.
Percentage-wise, OrganiGram performed worse in the Canadian space.
What’s Happening to Cannabis?
Canada originally had a date set for legalizing recreational use of cannabis by July 2018. This was big news and was setting up a lot of cannabis companies, Canadian ones especially, to become prime real estate in any investors’ portfolio.
Several delays have now occurred that are pushing this date back further and further, and it seems that investors are getting discouraged, possibly pulling out of their cannabis stocks for the time being to trade in something else.
At this point in time, it is almost certain that recreational cannabis use in Canada will not be legalized by July 2018. Even August seems to be pushing it. Cannabis stocks have taken a beating as of late; the delayed legalization may be the main factor behind this.
Featured image: geralt