British American Tobacco Company Buys Into An American MSO Cannabis

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The munKNEE Conservative Cannabis Stocks Index consists of 5 tobacco companies and 1 liquor company that are significantly invested in the cannabis industry. The Index went UP 1.1% last week with all but one constituent doing so and is now UP 1.3% since the beginning of October and UP a marginal 0.2% YTD. Below is the performance of the constituents, in descending order, last week, and news on one constituent's new stake in an American MSO.

1. Imperial Brands(IMBBY) was UP 6.0% last and has a Dividend Yield of 7.15%.
   • The company has a 19.9% stake in Auxly Cannabis Group Inc. (CBWTF).
2. British American Tobacco (BTI) was UP 3.6% last and has a Dividend Yield of 7.05%.
   • The company has a C$221M investment and product development partnership with Organigram Holdings Inc. (OGI).
   • The company just announced (November 15th) a US$56.8 million investment into Charlotte’s Web Holdings, Inc. (CWBHF) in the form of a convertible debenture, which if converted (at BTI's discretion) would equate to a 19.9% ownership position in the company.
3. Molson Coors (TAP) was UP 3.1% last week and has a Dividend Yield of 2.90%.
   • The company has a 57.5%/42.5% joint venture, called TRUSS, with Hexo Corp. (HEXO).
4. Anheuser-Busch (BUD) was UP 0.3% last week and has a Dividend Yield of 1.05%.
   • The company has a $100 million joint venture with Tilray Inc. (TLRY).
5. Constellation Brands(STZ) was UP 0.3% last week and has a Dividend Yield of 1.30%.
   • The company has a 39% stake in Canopy Growth Corporation  (CGC).
6. Altria Group (MO) was DOWN 0.4% last week and has a Dividend Yield of 8.12%.
   • The company has a 45% stake in Cronos Group Inc. (CRON).

In summary, the Conservative Cannabis Stocks Index:

• was UP 1.1% last week,
• is UP 1.3% since the beginning of October,
• and UP a marginal 0.2% YTD

and its constituents now have an average Dividend Yield of 2.95%.

The Index is referred to as "conservative" because the other cannabis categories are each DOWN more than 50% YTD as follows:

• the Psychedelic Stocks Index: DOWN 63.9% YTD
  • Read: Psychedelic Drug Stocks Index Continued To Decline Last Week
• the Ancillary Pot Stocks Index: DOWN 59.1% YTD,
  • Read: Suppliers Of Goods & Services To Cannabis Companies Outperformed S&P 500 In October
• the American Cannabis MSOs Index: DOWN 52.5% YTD,
  • Read: American MSO Stocks Index Up Considerably - Is The Bottom Finally In?
• the Canadian Cannabis LPs Index: DOWN 50.6% YTD
  • Read: Major Canadian Cannabis LP Stocks' Financial Metrics: A Comparison.

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More By This Author:

Cannabis Category Performances Ranged From +2.6% To -5.8% Last Week
American MSO Stocks Index Up Considerably - Is The Bottom Finally In?
Major Canadian Cannabis LP Stocks' Financial Metrics: A Comparison