The Canadian Licensed Producer (LP) component of the munKNEE Pure-Play Pot Stock Index of 9 vertically integrated constituents cratered on Thursday, going down 33.1% after having gone up  21.5% the day before (see details here).

LP Pure-Play Pot Stock Index Performance

The rally earlier this week in LP stocks was stoked largely by short-term speculative investor interests via the Reddit forum WallStreetBets but the extent of the gains has led to stretched valuations resulting in the major pull-back today.

The constituent declines are as follows:

1. Tilray (TLRY): -49.7% to $32.16/share
2. Organigram (OGI): -38.8% to $3.67/share
3. Aphria (APHA): -35.8% to $16.88/share
4. Hexo (HEXO): -24.5% to $7.76/share
5. Aurora (ACB): -23.5% to $14.47/share
6. Canopy (CGC): -22.1% to $40.65/share
7. Cronos (CRON): -21.9% to $12.15/share
8. Valens (VLNCF): -14.5% to $1.56/share

Rubicon (ROMJF) built on its 10.4% advance on Wednesday with an 8.4% advance on Thursday to $3.00/share.

Change In the munKNEE LP Pure-Play Pot Stock Sub-Index

Neptune Wellness has just acquired a 51% interest in Sprout Foods, an organic plant-based baby food/toddler snack company, in its transformation into a consumer packaged goods company. This transformation now makes Neptune ineligible for inclusion in the munKNEE LP Pure-Play Pot Stock Sub-Index as one of the criteria for inclusion requires that the constituents generate 100% of their revenue directly from the sale of cannabis products. As such, Neptune was removed from the Index yesterday.

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