The Investing News Network brings investors in the cannabis space an update on some of the biggest developments in the public markets during the month of September.
As the legalization of recreational cannabis approaches the Canadian market, September offered another hectic month for the overall industry.
The Ontario government has unveiled more regulations on how exactly its retail market will work once shops become widespread next April. “Any licensed producer will be permitted to hold a single retail license at a single production site located in Ontario,” Ontario’s Attorney General Caroline Mulroney said. The province will also limit how many licenses a specific company or person may hold.
The markets took a minor dip in reaction as a collection of LPs have made significant bets to expand networks of cannabis retail shops across Canada.
Cannabis companies seek premier US listing
Aurora Cannabis (TSX:ACB) and Aphria (TSX:APH) are pursuing a listing on a US premier exchange, either the Nasdaq or New York Stock Exchange (NYSE). With that interest in mind the two companies completed divesting the remaining interests in the US market off the books.
Australis (CSE:AUSA) is a new cannabis investment company which is a spin off from Aurora. The new company will seek opportunities in the fractured US cannabis market. Meanwhile Aphria sold its remaining stake in Liberty Health Sciences (CSE:LHS), a multi-state operator in the US with assets in Florida originally launched as a subsidiary of the Canadian LP.
Tilray takes investors on wild ride
The Canadian LP enjoyed a rush in the public markets as part of a combination of the new interest from US investors and a tight float limiting the access to exposure on the company. During the month of September shares of the company rose in value 86.50 percent and even reach a price tag of over US$300.
Observers of the industry debated the impact this kind of stock volatility could have on the overall cannabis space.
Nic Easly, CEO of 3C Consulting and a managing partner with Multiverse Capital, told the Investing News Network (INN) Tilray’s stock was out of control. “It’s going to hurt investor confidence in public markets and private markets,” Easley said.
Others didn’t share the same sentiment as Easley. Alan Brochstein, a cannabis analyst with 420 Investor cannabis analyst, wrote in a weekly newsletter he viewed the rush to Tilray s a “big positive” for the whole sector.
Watch the video above for more on what happened during the month of September.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.