Cannabis Central: MSO Pot Stock Sub-Index Declined 7.4% Last Week

The American Multi-State Operators (MSOs) component of the vertically integrated munKNEE Pure-Play Pot Stock Index has gone up 57% since the beginning of 2021 and up 32% since the beginning of February but was down 7.4% this past week. This article identifies the winners and losers and the reasons behind their movements.

(For more information on the reason(s) behind the changes outlined below you are urged to click on the stock symbols provided by TalkMarkets, where additional information is provided. All currency amounts are in U.S. dollars. Go here to convert to another currency.)

MSO Pure-Play Pot Stock Index Performance

The criteria for being included in the munKNEE MSO Pure-Play Pot Stock Sub-Index is that the constituents are Multi-State Operators that consistently trade for a minimum of US$1/share and generate 100% of their revenue directly from the sale of cannabis products.

Only 3 of the 21 constituents in the sub-index advanced last week, as follows, with price changes for the month of February in brackets:

1. HempFusion (CBDHF): +12.7% (new) to $3.38/share
   • The Depository Trust Company approved its common shares for trading and servicing through DTC's electronic book-entry system.
2. Indus Holdings (INDXF): +10.3% (+73.0%) to $1.92/share
   • Acquired Lowell Herb Co., a leading California cannabis brand that manufactures and distributes distinctive and highly regarded premium packaged flower, pre-roll, concentrates, and vape products, and its Lowell Smokes trademark brands, product portfolio, and production assets from The Hacienda Group for US$39.0 million.
   • In connection with this acquisition, the Company will be changing its corporate name to Lowell Farms Inc. and begin trading on the Canadian Securities Exchange (CSE) under the ticker symbols LOWL and LOWL.WT, and on the OTCQX, under the ticker symbol LOWLF, effective on March 5, 2021,
3. Vireo Health (VREOF): +0.3%(+41.2%) to $3.21/share
   • Completed a major expansion of its cultivation and processing facility south of Tucson, AZ, which will increase the output capacity of cannabis flower by at least fivefold.
   • Its subsidiary company, MaryMed, LLC, has completed its previously-announced capacity expansion initiatives in the state of Maryland and has also received regulatory approval to open its first retail dispensary in Frederick, Maryland.
   • Has purchased cannabis licenses in Nevada which will allow the company to cultivate and produce medical and adult-use cannabis products in the state.

The 11 worst performers last week were as follows, in descending order, with price changes for the month of February in brackets. For the most part, the stocks had no specific news (unless otherwise noted) and their declines can be attributed to cooling down in sentiment among investors regarding cannabis stocks in general. 

1. Medicine Man (SHWZ): -18.6% (-2.9%) to $2.32/share
2. Charlotte's Web (CWBHF): -17.5% (+16.9%) to $4.70/share
3. cbdMD (YCBD): -16.0% to $3.74/share
4. Harvest Health (HRVSF): -14.6% (+27.1%) to $3.80/share
5. Verano (VRNOF): -13.6% (new) to $27.65/share
   • has entered into an agreement to acquire three active dispensaries and one cultivation and production facility in Arizona
   • has entered into agreements to acquire one of Illinois’ top-producing dispensaries with the ability to open one additional dispensary in Chicago, three highly productive active dispensaries and a permit for three additional dispensaries in Pennsylvania, as well as one coveted active dispensary in Phoenix, Arizona
6. TerrAscend (TRSSF): -11.9% (+10.5%) to $13.41/share 
7. Green Thumb (GTBIF): -11.6% (12.1%) to $32.50/share
8. Cresco (CRLBF): -10.8% (+19.9%) to $14.14/share 
9. Harborside (HBORF): -9.3% (+1.6%) to $1.95/share
10. C21 Investments (CXXIF): -8.1% (+28.5%) to $1.58/share
11. Columbia (CCHWF): -7.0% (+6.6%) to $6.79/share

The remaining 7 constituents (Curaleaf, Jushi, Planet 13, Trulieve, IM Cannabis, Acreage, and Ayr) declined less than 6% during the week

If you are interested in how the Canadian LP (Licensed Producers) did please refer to Cannabis Central: Licensed Producer Pot Stock Sub-Index Crashed 14.5% Last Week.