Cannabis Central: 84% Of The Pot Stock Index Constituents Declined On Wednesday

The munKNEE.com Pot Stock Index of the 25 pure-play* cannabis stocks that trade for more than US$1/share declined 2.6% on Wednesday with only 3 of the constituents advancing, 21 declining (84%), 1 with no change in price and 3 of the 4 associated sector categories declining. The details are as follows:

No constituent advanced by 5% or more. The best performer on the day was Avicanna (AVCNF) which advanced 3.6%.

7  constituents declined by 5% or more, namely:

1. Planet 13 (PLNHF) -11.5%
2. cbdMD (YCBD) -7.9%
3. Charlotte's Web (CWBHF) -7.4%
4. Cresco (CRLBF) -6.8%
5. Organigram (OGI) -6.2%
6. Greenlane (GNLN) - 6.0%
7. Medicine Man (SHWZ) -5.8% 

14 other constituents declined with 1 having no change in price.

Further details regarding the equal-weighted munKNEE.com Pot Stock Index are as follows:

1. *The 25 pure-play constituents in the munKNEE.com PSI are just that, pure, deriving 100% of their revenue from the sale of cannabis or cannabis-related products.

• As such, unlike every marijuana ETF (see this TalkMarkets article) and every other cannabis tracking index (see this TalkMarkets article), the munKNEE.com PSI excludes "wanna-be" companies that generate little, if any, of their total revenue directly from the cannabis industry, to reflect the true health of the marijuana industry in the U.S. and Canada.
• As such, the munKNEE.com PSI excludes: GW Pharmaceuticals (GWPH), Abbvie, (ABBV), Arena Pharmaceuticals (ARNA), GrowGeneration (GRWG), Scotts Miracle-Gro (SMG), Innovative Industrial Properties REIT (IIPR), New Age Beverages (NBEV), Alcanna (LQSIF), Alkerna (KERN) and Village Farms (VFF).

2. The average market capitalization of the munKNEE.com PSI is US$963M.

3. In addition, the constituents operate in 4 categories based on their primary area of focus in the cannabis industry and the constituents within each category are identified below with how each of the categories did:

1. The Vertically Integrated (i.e. Seed-to-Sale) Category consists of 21 companies that grow, process, and sell cannabis and hemp flower and related products and it declined 2.6% vs. a 2.0% decline on Tuesday.
   • the 7 constituents that are Canadian Licensed Producers (LPs) declined 1.1%, on average, vs. a 0.2% decline on Tuesday.
     • ACB; APHA; CGC; CRON; OGI; ROMJF and TLRY
   • the 12 constituents that are U.S. Multi-State Operators (MSOs) declined 3.0%, on average, vs. a 3.1% decline on Tuesday.
     • ACRGF; AYRSF; CCHWF; CRLBF; CURLF; GTBIF; JUSHF; PLNHF; SHWZ; TRSSF; TCNNF and HRVSF
   • the 2 constituents that are only involved in the seed-to-sale of CBD from hemp declined 7.6%, on average vs. a decline of 1.0% on Tuesday.
     • CWBHF and YCBD
2. The Extraction Category consists of companies focused on the extraction of cannabis compounds and their infusion into consumer products and it declined 1.8%, on average, vs. a decline of 1.7% on Tuesday.
   • the 2 constituents in this category are NEPT and VLNCF
3. The Consumption Devices Category consists of companies focused on developing and selling personal consumption devices for cannabis consumers such as vape pens and inhalers. It declined 6.0% vs. a 0.7% advance on Tuesday.
   • the 1 constituent in this category is GNLN
4. The Biotechnology Category consists of pharmaceutical companies marketing new drugs and products utilizing cannabinoids and the category advanced 3.6% on Wednesday on top of a 4.6% increase on Tuesday and a 2.8% increase on Monday.
   • the 1 constituent in this category is AVCNF

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