Cannabis Central: Pure-Play Pot Stock Index Flat On Monday

The munKNEE.com Pot Stock Index of the 25 pure-play* cannabis stocks that trade for more than US$1/share declined 0.8% on Monday with 10 of the constituents advancing, 15 declining  and 2 of the 4 associated sector categories advancing. The details are as follows:

Only 3 constituents advanced by 5% or more, namely:

1. Planet 13 (PLNHF) +15.9%
2. TerrAscend (TRSSF) +7.2%
   • (Read Cannabis Central: TerrAscend Pre-Announces Strong Q2 Financials - Stock Surges)
3. Cresco (CRLBF) +6.2%

7 additional constituents advanced in price on Monday.

4 constituents declined by 5% or more, namely:

1. Medicine Man (SHWZ) -19.4%
   • in response to an extremely negative Q2 financial report
2. Trulieve (TCNNF) -5.7%
   • (Read Cannabis Central: Trulieve Q2 Financials Show Record Revenue)
3. Aurora (ACB) -5.5%
4. cbdMD (YCBD) -5.3%

11 other constituents declined in price on Monday.

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

1. *The 25 pure-play constituents in the 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 PSI excludes "wanna-be" companies that generate little, if any, of their total revenue directly from the cannabis industry so as to reflect the true health of the marijuana industry in the U.S. and Canada.
• As such, the excluded companies are: 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 0.8% Monday.
   • the 7 constituents that are Canadian Licensed Producers (LPs) declined 2.1%, on average, on day.
     • ACB; APHA; CGC; CRON; OGI; ROMJF and TLRY
   • the 12 constituents that are U.S. Multi-State Operators (MSOs) advanced 0.02%, on average, on Monday.
     • 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 0.2%, on average, on Monday.
     • 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 2.5%, on average, on Monday.
   • 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 advanced 2.2% on Monday.
   • 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 2.9% on Monday.
   • the 1 constituent in this category is AVCNF

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