At the end of August, the U.S. Department of Health & Human Services recommended that marijuana's drug status be changed to a lower-risk Schedule III substance. If implemented it would allow major U.S. stock exchanges to list MSOs on their exchanges, substantially ease banking requirements for MSO companies, and, potentially, allow Canadian cannabis LPs (as well as other foreign domiciled companies) to begin selling their products in the United States.

Investors' reaction was initially enthusiastic, with the industry's average stock price jumping by almost 50% within 2 weeks in early September only to begin a steady decline thereafter, and the industry's average stock price is now marginally below its price at the end of August.

Below are the performances of the 5 stocks in munKNEE's Canadian Cannabis LPs Index and in the 7 stocks in munKNEE's American Cannabis MSOs Index for this week as of the close of business on October 5th.

munKNEE's Canadian Cannabis LPs Index

1. Cronos Group (CRON): No Change this week
   • *Price-to-Sales Ratio (PSR): 9.5
2. Aurora Cannabis (ACB): DOWN 3.4% this week
   • Price-to-Sales Ratio (PSR): 1.4
3. Canopy Growth (CGC): DOWN 9.0% this week
   • Price-to-Sales Ratio (PSR): 1.8
4. Organigram Holdings (OGI): DOWN 9.8% this week
   • Price-to-Sales Ratio (PSR): 0.8
5. Tilray Brands (TLRY): DOWN 11.3% this week
   • Price-to-Sales Ratio (PSR): 1.9

Average: DOWN 6.9% this week

munKNEE's American Cannabis MSOs Index

1. Verano Holdings (VRNOF): DOWN 9.0% this week
   • Price-to-Sales Ratio (PSR): 1.5
2. TerrAscend Corp. (TSNDF): DOWN 9.3% this week
   • Price-to-Sales Ratio (PSR): -
3. Green Thumb (GTBIF): DOWN 10.1% this week
   • Price-to-Sales Ratio (PSR): 2.4
4. Curaleaf Holdings (CURLF): DOWN 11.9% this week
   • Price-to-Sales Ratio (PSR): 2.1
5. Cresco Labs (CRLBF): DOWN 15.3% this week
   • Price-to-Sales Ratio (PSR): 0.8
6. The Cannabist Company (CBSTF): DOWN 16.7% this week
   • Price-to-Sales Ratio (PSR): 0.6
7. Trulieve Cannabis (TCNNF): DOWN 17.7% this week
   • Price-to-Sales Ratio (PSR): 0.8

Average: DOWN 12.2% this week

*The price-to-sales ratio (PSR) describes how much someone must pay to buy one share of a company relative to how much that share generates in revenue for the company. and, as such, determines whether its stock is cheap or overpriced in comparison to its peers. While the ideal ratio depends on the company and industry, the ratio is typically good when the value falls between one (1)  and two (2) and a ratio of less than one (1) is even better.

If you are interested in the cannabis category, consider:

• the AdvisorShares Pure US Cannabis ETF (MSOS) which was DOWN 12.2% this week and/or
• the Global X Cannabis ETF (POTX), which consists of the above 5 highlighted Canadian stocks plus another 12 cannabis or cannabis-related (i.e. auxiliary) stocks, was DOWN 6.2% this week.

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