E Cannabis 2.0 Gave The Marijuana Market A 7% Boost Last Week

[TM Editors Note: This article discusses one or more penny stocks and/or microcaps. Such stocks are readily manipulated; do your own careful due diligence.]

The October 17th legalization of the sale of marijuana-infused beverages and edibles in Canada (referred to as Cannabis 2.0) effective December 17th, gave the cannabis market a much needed shot in the arm this past week with the overall market advancing by 7% and one extraction stock increasing by 16.8% in anticipation of the demand that event will have on its sales, valuation and stock price.

At the core of these new products will be cannabis extract companies that have been ramping up their extraction capabilities to prepare for the next phase of Canada’s cannabis legalization. See a previous article I wrote on extraction stocks here.

The announcement had a positive and sustaining impact on the stock prices of the 5 primary extraction companies which went up 10.0%, an average, over the previous week's close. Specifically:

  1. Valens GroWorks Corp. (TSXV:VGW; OTCQX:VGWCF) +16.8%
  2. Radient Tecnologies Inc. (TSXV:RTI) +12.0% 
  3. MediPharm Labs Corp. (TSX:LABS; OTCQX:MEDIF) +11.4%
  4. Neptune Wellness Solutions Inc. (TSX:NEPT; Nasdaq:NEPT) +5.0%
  5. Nextleaf Solutions Ltd. (CSE:OILS) +2.6%

Based on the North American Marijuana Index the overall cannabis market saw an average increase of 7.05% last week led by companies such as: 

  • OrganiGram Holdings Inc. (TSX:OGI; Nasdaq:OGI) +12.9%
  • Hexo Corp. (TSX:HEXO; NYSE:HEXO) +7.5%
  • Cronos Group Inc. (TSX:CRON; Nasdaq:CRON) +5.4% and
  • Canopy Growth Inc. (TSX:WEED; NYSE:CGC) + 3.5%

Why should you be interested in Cannabis 2.0? Well, according to 2 recent studies:

  1. 1.5 million new customers could now be introduced into the market with the availability of non-smokable products and
  2. this new legalization could create a C$2.7 billion industry in Canada.
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