Cannabis Central: Pot Stocks Surged Again On Friday

The passing of legislation to legalize recreational cannabis in New Jersey, Arizona, South Dakota and Montana and medical cannabis in Mississippi, and the likely victory of the Democratic Party nationally, has reflected itself in major returns for Canadian and American pot stocks on Thursday and again on Friday.

The munKNEE Pure-Play* Pot Stock Index was up a further 8.4% on Friday on the heels of an 8.7 % advance on Thursday. Again Friday 23 of the 25 constituents went UP (of which 13 did so by more than 5%) as did each of the 3 industry categories again on Friday. The details are as follows:

Index Performance

The Index has companies doing business in a number of different categories and sub-categories based on their primary area of focus in the cannabis industry. Those categories are identified below along with the index constituents within each category that went up or down by 5% or more:

1. The Vertically Integrated (i.e. Seed-to-Sale) Category went up 8.5% (on the heels of an 8.6% increase on Thursday). The category consists of the 22 index constituents that grow, process, and sell cannabis and hemp flower and related products.
   • The Canadian Licensed Producer (LPs) Category went up 17.4% (+16.8% on Thursday). All 7 constituents went UP with 5   changing price by 5% or more as follows:
     1. Aurora (ACB) +56.1% (+41.5% on Thursday)
     2. Tilray (TLRY) +23.2% (+30.3% on Thursday)
     3. Organigram (OGI) +17.9% (+12.9% on Thursday)
     4. Cronos (CRON) +16.1% (+16.7% on Thursday)
     5. Canopy (CGC) +10.9% (+11.6% on Thursday)
   • The U.S. Multi-State Operator (MSOs) Category went up 3.8% (+4.5% on Thursday). 11 of the13 constituents went UP (6 did so on Thursday) with the following changing price by 5% or more:
     1. Acreage -Fixed (ACRDF) +18.0%
     2. Acreage -Floating (ACRHF) +15.1%
     3. Curaleaf (CURLF) +7.3%
   • The Hemp Seed-to-Sale MSO Sub-Category went up 13.6% (+16.8% on Thursday) with both constituents changing in price by 5% or more, as follows:
     1. Charlotte's Web (CWBHF) +14.7% (+16.3% on Thursday)
     2. cbdMD (YCBD) +12.1% (+17.5% on Thursday)
2. The Extraction Category went up 8.7% (+ 0.7% on Thursday). The category consists of companies focused on the extraction of cannabis compounds and their infusion into consumer products and both constituents changed in price by 5% or more, as follows:
   1. Neptune (NEPT) +10.4%
   2. Valens (VLNCF) +6.3% (+11.3% on Thursday)
3. The Consumption Devices Category went up 6.9% (+18.3% on Thursday). The category is focused on developing and selling personal consumption devices for cannabis consumers such as vape pens and inhalers and it only has one constituent, namely, Greenlane (GNLN).

*Please note: Each of the 25 pure-play stocks in the munKNEE Pure-Play Pot Stock Index are just that, pure, deriving 100% of their revenue from the sale of recreational and medical cannabis and consumption-related products and, as such, the Index reflects the true health of the marijuana industry in the U.S. and Canada. In addition, the Index only includes those pure-play cannabis stocks that consistently trade for more than US$1/share