The marijuana index started recovering losses that it had posted in the last month. The price correction trend seems to be ending. The index rose for the fourth straight day to 256 points. Analyst’s bullish forecasts and solid financials for the first quarter are supporting the uptrend. The North American Marijuana index has the 52-week trading range of 120 to 363 points.
Deals regarding mergers and acquisitions are supporting the marijuana index to post gains. Aurora Cannabis – which is among the biggest cannabis company, announced the takeover of MedReleaf. Cannabis companies are working on the merger and acquisition strategy to expand their market share in the emerging market.
Market participants are expecting the marijuana index to rebound sharply this year, amid improving market dynamics for the use of medical and recreational marijuana.
The majority of prominent cannabis companies are posting high double-digit sales growth in the past few quarters. Sales forecasts show that the trend will intensify in the following quarters.
General Cannabis (OTCQB:CANN) has reported sales growth of 30% for the first quarter. The company expects its momentum to accelerate in the following quarters, driven by increasing demand and legalization of recreational cannabis in key U.S. states.
Michael Feinsod, Executive Chairman of General Cannabis, stated, “I am excited as we enter mid-2018 well capitalized and ready to take advantage of not only the organic growth in the cannabis industry but also an increasing number of acquisition opportunities.”
Namaste Technologies (OTCQB:NXTTF) are among the biggest gainers. The company has reported sales growth of more than 150% in the latest quarter. It has also been aggressively working on expansion strategies to capitalize on increasing demand. The company has acquired Cannmart Inc in the most recent quarter, and it is planning to find new opportunities to expand their market share in global markets.
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