The munKNEE Pure-Play Pot Stock Index was up 32.3% for the month of January, 2021. This article identifies the winners and losers.

(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 articles are listed. All currency amounts are in U.S. dollars. Go here to convert to another currency.)

Index Performance

The criteria for being included in the munKNEE Pure-Play Pot Stock Index is that the stock is consistently trading for a minimum of US$1/share and generates 100% of its revenue directly from the sale of cannabis products.

As we have previously noted, the major surge in the price of marijuana stocks in January seems due to the hope that the Democrats' winning the two Senate seats in Georgia giving them a majority in the Senate will result in the passage of more favorable Federal marijuana legalization in the U.S.. In addition,

• Aphria and Tilray announced plans to merge, creating what will become the largest global cannabis company by revenue;
• HEXO and beverage giant Molson Coors announced that their joint venture, Truss CBD USA, is preparing to launch a new beverage and
• Canopy holds warrants to acquire MSO Acreage Holdings no later than 60 days after the federal legalization of cannabis.
• Most of the other outperformances were due to a major spillover of positive sentiment as a result of the Democrat victories in Georgia.

The Canadian Licensed Producer (LP) Category went up 60.8% in January with 9 of the 10 stocks within the category advancing of which 7 did by +30%, as follows:

1. Tilray (TLRY): +119.1% to $18.10/share
2. Aphria (APHA): +76.0% to $12.18/share
3. Hexo (HEXO): +72.6% to $6.35/share
4. Canopy (CGC) +62.3% to $40.07/share
5. Cronos (CRON): +49.1% to $10.35/share
6. Organigram (OGI) +37.6% to $1.83/share
7. Aurora (ACB): +34.2% to $11.15/share

Rubicon (ROMJF) was the only LP to decline during January and it did so by 11.3% to $2.51/share.

The U.S. Multi-State Operator (MSOs) Category went up 20.0% in January with 17 of the 20 constituents advancing of which 8 did so by +20%, as follows:

1. Acreage (ACRDF + ACRHF): +94.8% to an average of $10.11
2. Medicine Man (SHWZ): +57.2% to $2.39/share
3. Vireo Health (VREOF): +54.1% to $2.28/share
4. Harvest Health (HRVSF): +38.4% to $2.99/share
5. Trulieve (TCNNF): +26.3% to $39.96/share
6. Harborside (HBORF) +22.3% to $1.92/share
7. Charlotte's Web (CWBHF): +21.8% to $4.02/share
8. TerrAscend (TRSSF): +20.8% to $12.14/share

Planet 13 (PLNHF), Indus Holdings (INDXF) and IM Cannabis (IMCNF) were the only MSOs to decline during the months and they did so by -5.9%, -2.6% and -2.0%, respectively.

Further details regarding the equal-weighted munKNEE Pure-Play Pot Stock Index are as follows:

• Only 30 stocks qualify for inclusion in the Index out of a total of over 225 (pure-play and ancillary) trading on North American exchanges.
• The average market capitalization of the 30 constituents is US$1.5B, as follows:
  • 10 have market caps ranging between $1.0B and $10.0B;
  • 5 have market caps between $500M and $999M;
  • 12 have market caps between $100M and $499M and
  • 3 have market caps of less than $100M.