Call it Bounce Back Monday. Because that is what the big names in the cannabis sector on both sides of the Canada-US border did yesterday, gaining across the board. But not all of them regained from the dips they suffered last week.
And so goes the see-sawing story of marijuana stocks of late. At the end of last week the question investors found themselves asking was: Will cannabis stocks turn the corner? Because last week proved to be another punishing time in the cannabis markets.
A list of the big names in the sector suffered a drubbing last week, including Tilray (NASDAQ:TLRY) (TSX:TLRY), Canopy Growth (NASDAQ:CGC) (TSX:WEED), Trulieve Cannabis (OTC:TCNNF) (CSE:TRUL) and Curaleaf (OTC:CURLF) (CSE:CURA).
In the case of two prominent US-based names in the sector—Trulieve and Curaleaf—both posted double-digit drops in their stock prices over the course of last week. But yesterday, they both rebounded.
Trulieve stock saw the biggest dip, shedding almost 11% to close last Friday at $18.64. But by the close yesterday, the stock gained a little more than 6% to end the session at $19.70.
Curaleaf investors witnessed a similar pattern, as the stock lost about 10% last week, closing last Friday at $7.04. But by the end of yesterday's session, the share price gained back a little over 3% to close at $7.26
For the Canadian-based cannabis growers the swings were not as harsh, with the dips suffered last week more than erased by the gains posted yesterday.
Canopy Growth shares gained a slight bit more than 10.5% yesterday to close at $8.04, slightly higher than the highs posted last Tuesday at $7.69.
On Monday, Tilray stock gained more than 8.5% to close at $5.96, an improvement on the high posted last Monday that was whittled away all throughout last week.
Hexo’s NASDAQ Listing In Jeopardy
Canadian-based cannabis company Hexo Corp (NASDAQ:HEXO) (TSX:HEXO) yesterday received official notification that its listing on the NASDAQ exchange is in jeopardy after trading below $1 for 30 consecutive trading days.
The notification amounts to a warning, and has no immediate effect on the company’s listing on the exchange, but it starts the clock on a 180-day period. If the stock does not begin to trade above the $1 threshold in that time period, which stretches to July 25, the stock will be dropped from the listing.
Although Hexo shares gained almost 13% on the NASDAQ yesterday, they closed at 56 cents.
The notice does not affect the company’s listing on the Toronto Stock Exchange, where it is also traded.
Thailand Becomes First Asian Country To Decriminalize Pot
Thailand became the first country in Asia to move towards decriminalizing cannabis, but a number of questions on how that is going to work still remain.
The Thai government’s health ministry last week dropped cannabis from its list of controlled drugs. The next step is to have the substance delisted by its Food and Drug Administration, which is to happen later this year. Whether this will mean that possession of marijuana for recreational purposes will still be considered an offense is not quite clear, however.
In 2020, Thailand became the first Asian country to decriminalize the production and use of marijuana for medical use. This latest move is viewed as the first step towards developing the cannabis and hemp industries with the goal of improving medical uses, as well as other less-defined health benefits that could be associated with recreational use.
According to media reports, a government spokesperson said one aim to loosen restrictions on cannabis is to create “income for the public.”