The munKNEE Pure-Play "Seed-to-Sale" Pot Stocks Index continued to decline last week (-2.2%) and is now DOWN -66.8% from its 52-week high. The Canadian LPs segment is now DOWN -84.2% and the American MSOs segment is now DOWN -56.5%. Below are the specifics by constituent per sector.

The munKNEE "Seed-to-Sale" Pot Stocks Index has undergone a revision with the deletion of two constituents (HEXO and Charlotte's Web CWBHF- one from each country) which no longer meet the inclusion requirements. The Index now consists of:

• the 21 non-ancillary (i.e. pure-play) vertically integrated cannabis companies whose stocks trade for at least US$1/share, have a market cap of at least US$200M and trade on one or more of the Canadian and/or American stock exchanges consisting of:
  • 5 Canadian Licensed Producers (LPs),
  • 16 American Multi-State Operators (MSOs) which, in total,
  • represent 10% of the total universe of 212 cannabis and ancillary companies currently trading.

The non-tradable Index gives each constituent the same importance to provide a comparison of the performance of each with the others and the stated sector as a whole.

The munKNEE Pure-Play Canadian LP Pot Stock Index

Note that each constituent has hyperlinks to 3 areas of additional information which are imperative for any individual considering investing in this sector:

• The company name is hyperlinked to its web site to provide you with a description of the company and an analysis of its stock.
• The trading symbol is hyperlinked to additional financial data and commentary on the company (where available).
• The percentage change from its 52-week high in 2021 is hyperlinked to a chart of the company's stock performance.

The "financial distress" percentage is sourced from macroaxis.com (visit the site and type in the stock symbol to obtain detailed financial data on the health of the company) and the articles hyperlinked are sourced from Stone Fox Capital and/or Technical420 and provide analyses/commentaries on most of the constituents below to help a potential investor with insights into the burgeoning, yet volatile, cannabis sector.

Below is how the Canadian Licensed Producer constituents have performed since their market highs in 2021, in descending order:

1. Aurora (ACB): -71.0% 
   • Has a 49% chance of going through some form of financial distress in the next two years
   • Read:
     • Aurora Cannabis: Investors Should Have No Confidence In This Company
     • 5 Key Takeaways From Aurora Cannabis Q1 Earnings Release
2. Organigram (OGI): -74.9%
   • Has less than a 1% chance of experiencing financial distress in the next few years
   • Read:
     • Organigram Holdings Had A Pretty Strong 2021 And Are Full Steam Ahead Going Into 2022,
     • OrganiGram: Positive Signs, But Struggles Persist
     • Organigram Q4 Financials Report Increase In Net Revenue But Major Increase In Net Loss
3. Cronos (CRON): -75.4%
   • Has a 50% chance of going through some form of financial distress in the next two years
   • Read:
     • Cronos Group: Still Hasn't Launched
     • The Cronos Group Could Be A Valuable Asset If They Ever Decide To Get Their Act Together
4. Canopy Growth (CGC): -84.9%
   • Has more than a 61% chance of experiencing financial distress in the next few years of operation
   • Read:
     • Canopy Growth Corp. Continues To Lose The Confidence Of The Retail and Institutional Investing Communities
     • Canopy Growth: Cracking The Piggy Bank Again
5. Tilray (TLRY): -86.8% 
   • Has more than a 63% chance of experiencing financial distress in the next few years of operation
   • Read:
     • Tilray: Out Of Touch
     • Tilray Insiders Are Selling Stock………Again.

The munKNEE Pure-Play American MSO Pot Stock Index 

Below is how the American Multi-State Operator constituents have performed since their market highs in 2021, in descending order:

1. Gage (GAGE): -34.2% 
   • in the process of being acquired by TerrAscend (TRSSF)
2. Valens (VLNS): -38.1%
   • Has a 50% chance of going through some form of financial distress in the next two years
3. Green Thumb (GTBIF): -46.7%
   • Has less than a 1% chance of experiencing financial distress in the next few years
   • Read: Green Thumb: Not Priced For Future Growth
4. 4Front Ventures (FFNTF): -52.0%
   • Has about a 40% probability of financial distress in the next few years of operation
   • Read: 4Front Ventures Reports Third Quarter 2021 Financial Results and Provides Business Update
5. Trulieve (TCNNF): -52.9%
   • Has about a 36% probability of financial distress in the next few years of operation
   • Read: Trulieve Cannabis: Florida Market About To Over Heat
6. Curaleaf (CURLF): -54.3%
   • Has about a 39% probability of financial distress in the next few years of operation
   • Read: Curaleaf: Primed For Big 2022 After Indigestion In 2021
7. Verano (VRNOF): -55.1%
   • Has about a 39% probability of financial distress in the next few years of operation
   • Read: Verano: Not A Great Quarter
8. Goodness Growth (GDNSF): -57.0%
   • Has more than 63% chance of experiencing financial distress in the next few years of operation
   • Read: Goodness Growth: Waiting On New York
9. Ayr Wellness (AYRWF): -57.9%
   • Has more than 62% chance of experiencing financial distress in the next few years of operation
   • Read: Ayr Wellness: Focus On The Big Picture
10. Jushi (JUSHF): -59.4%
    •  Has more than a 62% chance of experiencing financial distress in the next few years of operation
    • Read: Jushi: Focus On Progress, Not Perfection
11. Columbia Care (CCHWF): -61.9%
    • Has over a 74% chance of experiencing financial distress in the next few years of operation
    • Read: Columbia Care: Not Helping
12. Cresco (CRLBF): -62.7%
    • Has more than 62% chance of experiencing financial distress in the next few years of operation
    • Read: Cresco Labs: Right On Track In Difficult Market
13. TerrAscend (TRSSF): -62.8%
    • Has more than a 60% chance of experiencing financial distress in the next few years of operation
    • Read: TerrAscend: Continue Avoiding This MSO
14. Ascend Wellness (AAWH): -63.3%
    • Has a 50% chance of going through some form of financial distress in the next two years
    • Read: Ascend Wellness: New York Wildcard
15. Planet 13 (PLNHF): -64.4%
    • Has about a 25% chance of experiencing some form of financial distress in the next two years of operation
16. Acreage (ACRDF/ACRHF): -78.6%
    • Has over a 70% chance of experiencing financial distress in the next few years of operation
    • Read: Acreage Holdings: Forgotten MSO

The performance of our Pure-play "Seed-to-Sale" Index has been atrocious over the past 52 weeks and is showing no sign of improving based on the -2.2% decline that occurred this past week. That being said, however, perhaps the constituents are setting up to rebound in 2022 so the hyperlinks in this article should help investors with their due diligence should they be considering investing in the sector.