Headache from cannabis stocks

by druginc

Headache from cannabis stocks

AMSTERDAM (DFT) - The legalization of cannabis cultivation in Canada on Wednesday gave investors a headache on the first legal business day with stock market losses.

Expectations were high in advance: the first major economy after Uruguay legalized cannabis. The Cannabis Act Bill C-45 allows Canadians aged eighteen and older to carry XNUMX grams of cannabis with them, and to have a maximum of four cannabis plants at home. Almost a hundred manufacturers supply legally thanks to a license from the Ministry of Health. At the same time, sales to minors would be severely punished.

Potentially a large market. But at 37 larger listed companies, the majority of the returns immediately went up in smoke after the opening of trading. The broad S&P index for cannabis stocks was losing.

Legal cannabis is a billion dollar market. Tilray, previously one of the big listed promises in the young crop sector with a $13,4 billion market capitalization, fell 7%. Sector colleague Canopy Growth ($11,4 billion market value) burned 6%, Aurora has $13,3 market value and saw 6% evaporate.

The legalization of cannabis sales follows Prime Minister Trudeau's election promise. This would make it easier to curb the abuses caused by illegal use.

Cultivation for controlled, medicinal applications has already been permitted. Growers are not allowed to advertise, sponsoring events is not allowed.

Read the full article Telegraaf.nl (source)

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