Cannabis Stocks Show Resurgence Amid Regulatory Optimism

NEW YORK- Cannabis stocks, as reflected by the Global Cannabis Stock Index, experienced an explosive upturn on August 30, in light of recent revelations. The Department of Health and Human Services proposed to the DEA that cannabis be reclassified from a Schedule 1 to Schedule 3 substance. This ignited a rally throughout August, with further momentum carrying into September, where the index escalated by 2.9% to stand at 9.17.

However, the broader backdrop highlights the sector’s turbulence. The concluding months of 2022 saw the index recede by 23.7% in Q3 and 13.8% in Q4, cumulatively accounting for a 70.4% dip over the year. Fast forward to 2023: the industry witnessed a 12.5% contraction in Q1 and an 11.8% slide in Q2. Although Q3 showed a promising surge of 22.3%, the index remains 5.6% below its start-of-year value. This past quarter’s growth marked a refreshing change — the first positive trajectory since the outset of 2021. But since its zenith in February 2021, the index has plummeted 90.1%.

Top Performers:
Several companies stood out in September’s bullish climate:

• Canopy Growth (NASDAQ: CGC) (TSX: WEED): Advanced by 36.8%. Despite its spectacular Q3 performance, where it doubled in value, it’s still lagging by 66.1% for the year.
• Verano Holdings (OTC: VRNOF) (CSE: VRNO): Ascended by 29.4% in September, and has accrued a 45.8% gain for 2023.
• Cresco Labs (OTC: CRLBF) (CSE: CL): Rose by 28.5% over the month and marked a 34.9% surge in Q3.

Underachievers:
Certain stocks failed to match the general uplift:

• Tilray Brands (NASDAQ: TLRY) (TSXL TLRY): Declined by 19.3% over the month but made an impressive recovery of 53.2% in Q3.
• Bright Green (NASDAQ: BGXX): Slid 15.3% in September and a substantial 60.8% over Q3.
• Innovative Industrial Properties (NYSE: IIPR): Dropped 13.3% in September but managed a modest 3.6% gain in Q3.

The Global Cannabis Stock Index is set to expand its portfolio, welcoming nine fresh entrants in Q4, including prominent names like Akanda, The Cannabist Company, and Village Farms. However, Bright Green and Emerald Holding have been delisted owing to insufficient daily trading volumes.

For regular updates on the cannabis sector’s performance and detailed information on the index constituents, readers are directed to the Global Cannabis Stock Index webpage