Cannabis stocks fell on Thursday, wiped out by the broader stock market crash as trade tensions between China and the US increased after President Donald Trump threatened further tariff retaliation.
The Dow Jones Industrial Average
fell by 400 points in the initial trade, after Trump claimed that China "broke the deal". The main indices fell by at least 2% this week as anxiety over the deepening of the trade dispute has destabilized investors.
For more information, read: Dow falls 400 points, S & P set for the fourth consecutive day of losses after Trump claims that China has broken the deal.
The two main funds exchanged for cannabis fell in sympathy. The ETF Horizons Marijuana Life Sciences and ETFMG Alternative Harvest ETFs both suffered a drop of over 4% over the week.
In the regulatory news, the National Association of Advocates General sent a letter to the congressional leadership on Wednesday urging them to pass the SAFE banking act, a bipartisan bill aimed at protecting the financial institutions that serve the ; cannabis industry in the states that have legalized.
See also: Denver votes to decriminalize "magic mushrooms"
The letter from 38 state and regional attorneys general demands that Congress approve "the SAFE Banking Act or similar legislation that would provide a safe haven for depository institutions that provide a financial product or service to a covered company in a state that has implemented laws and regulations that ensure responsibility in the marijuana industry ".
The letter notes that the current state of affairs, in which companies are forced to handle large amounts of money, has made it more difficult to keep track of revenues for tax purposes and for regulatory compliance purposes.
To read: Cannabis stocks decrease when the activist investor targets the US agreement envisaged by Canopy
From Canada comes a new study that found that legal recreational cannabis support is falling in Canada, while uncertainty about it is growing. The study, conducted by Dalhousie University, found that 50.1% of Canadians said they accepted the legalization, down from 68.6% in a 2017 study carried out before legalization in October last year, according to media reports.
At the same time, 20.3% said they were uncertain, compared to only 6.9% in 2017.
"We were surprised to see that Canadians are actually less enthusiastic about the edibles since cannabis became legal last fall," said Dr. Sylvain Charlebois, author of the report.
The survey anticipates the legalization of food products in Canada in October. Only 36% of respondents say they want to buy cannabis-based food, down from 46% in the 2017 survey.
Not to be missed: As a newly-grown cannabis company, it has managed to lose $ 500 million in less than a month
"With the publication of cannabis edibles in October, we are frankly curious about the decrease in interest expressed by respondents," said Brian Sterling, one of the co-authors of the report. "We would like to understand this change. It will be interesting to see how this perspective evolves as cannabis and infused products become more common."
Cronos Group Inc. Shares
fell by 8%, after the company reported first quarter earnings. Cronos surprised the investors with a small profit of 427.812 C $ (317.380 USD), or 48 cents of quota, which comes after a loss of 1.085 C $, or 1 cent of action, in the preceding period.
Revenue rose to $ 6.470 million from C $ 2.945 million a year ago. FactSet's consent of six analysts was for a loss per share of 3 cents and a turnover of C $ 6.390 million. The company sold 1,111 kg of cannabis in the quarter, compared to 501 kg in the previous period. Revenues per gram sold came to $ 5.73 compared to $ 5.67 a year ago.
Aurora Cannabis Inc.
shares decreased by 3.6%. The company claimed to have been chosen by the Luxembourg Ministry of Health as the exclusive supplier of a second supply of medical cannabis to the duchy. The company stated that the initial quantities of the offers are small, but that it has demonstrated its ability to operate in complex and restricted markets.
Aleafia Health Inc.
ALEF, + 3.01%
ALEF, + 3.01%
he said he welcomed the changes to cannabis licenses announced by the Canadian ministry of health, which seek to align the approach with other regulated sectors. The ministry will require all applicants to have a fully built site that meets all regulatory requirements at the time of application and will complete a review of existing applications to speed up the process.
"These changes will lighten product shortages and application arrears, while stimulating job creation in local communities as more complete structures become operational," said Aleafia CEO Geoffrey Benic. The shares increased by 1.5%.
Elsewhere in the industry, Aphria Inc.
was down 3.5% and Hexo Corp.
it was down 3.6%. Market leader Canopy Growth Corp.
was down 3.3%. Tilray Inc.
The Medmen Enterprises Inc. shares of a medical cannabis dealer
they were down 1.2%. Valens GroWorks Corp.
was down 2.5%.
Also read: How to live near a marijuana dispensary affects the price of your home
To read: Tilray stocks increase after the company shows it can sell a recreational vessel
ETF of The Horizons Marijuana Life Sciences
was down 2.8% and ETFMG Alternative Harvest ETF
was down 2.2%.
See also: In the California Weed Country, fires burn both money and crops
Cannabis Watch: All MarketWatch coverage of cannabis companies
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