NewsEuropean Cannabis Stocks Review: 'End' Of US Cannabis Bear...

European Cannabis Stocks Review: ‘End’ Of US Cannabis Bear Market Rallies European Stocks 

-

FOLLOWING last week’s rally there has seen something of a lull with little movement for European cannabis stocks.

Last week’s bounce-back saw a number of double digit increases, including LSE-listed UK firm Cellular Goods which experienced a 40% rise over the week 

Its stock rose again earlier this week climbing to 2.36p, before falling back closer to last week’s 1.9p, at the time of writing.

Other recent, upwardly-mobile firms included LSE-listed Oxford Cannabinoid Technologies, Nordic NASDAQ listed Stenocare and Dusseldorf-listed Cannovum – with all three’s momentum stalling this week.

With the positive developments in Germany having been priced into the European markets for some time, a number of experts are pointing to events on the other side of the Atlantic for the recent upturn.

One keen UK market observer explained the recent improvements in Europe as follows: “I think July was the first positive month for Multi-State Operators (MSO) in a very long time.

US Cannabis Stocks Rally

“Across the pond, MSOs rallied last month with discussion of the Schumer/Booker Bill and the potential for the SAFE Banking Act to finally pass. This is the seventh attempt for SAFE to get through the Senate, so the battle with shorters remains,” he added.

However with summer shutdown now here and temperatures rising across Europe there may be little market activity for the coming weeks. He cautioned: “The markets are illiquid and not very exciting. We’re in the August lull!”

One of the few market announcements this week came from under-pressure UK firm Akanda. Following its recent turmoil, which led to the removal of the board by unhappy shareholders, it announced a new deal with German firm Cansativa to supply it with one tonne of dried cannabis flower from its Portuguese facility.

This led to a spike in the company’s share price on the NASDAQ to over 1.5p before it slipped back to around 1.2p at the time of writing.

Market Debut In 2023

The green rush, anticipated following the LSE debut of the first UK companies in early 2021, is yet to materialise.

One company –  which signalled its intent to float in London – is UK CBD firm CiiTECH and in a candid interview this week its founder and CEO Clifton Flack elaborated on the state of play.

Speaking to Proactive Investors he said: “We thought that would open the floodgates to a whole swathe of cannabis companies hitting the London markets and raising huge amounts of capital. 

“Well that didn’t happen, and it wasn’t just us and by the time we got to last summer, the hype had come off the markets a little bit, not just cannabis.

After Russia’s invasion of Ukraine, CiiTECH, took a step back. Mr Flack continued: “I know now with hindsight, six months on, it was the right decision. We weren’t able to raise the amount of money that we were hoping to raise so we would have had to have gone out with less money in the bank.”

Expectations of being able to do secondary funding rounds once public, again, were also unlikely to have happened, he added.

However Mr Flack remains bullish on its long-term prospects saying it is now looking to a 2023 listing.

The belief the US cannabis markets have bottomed is also shared by one of the industry’s leading lights; Alan Brochstein, of New Cannabis Ventures.

In his most recent weekly round-up he concluded: “The start of earnings season confirmed in our view that the bear market that began in early 2021 appears to be over.”

Peter
Peter
Peter McCusker is an experienced news and business editor, who believes it’s time to fully embrace the multiple, proven, medical benefits of the cannabis plant.

Latest news

Akanda Pulls Out Of Lesotho Amid Ongoing Legal Battle, Bruce Linton Joins SynBiotic, & Ananda Completes Acquisition

Akanda The NASDAQ-listed international medical cannabis operator announced last week that it will abandon its operations in Lesotho following...

Concerns Grow As Cannabis Sceptic Appointed To Lead Malta’s Adult-Use Reform

ALMOST one year since passing legislation fears are growing the Maltese Government is set to undermine its commitment to...

Brains Bio Receives NSF’s First CBD Certification For EU GMP CBD API

PRESS RELEASE BRAINS Bioceutical Corp ("Brains Bio" or the "Company"), a global leader in EU GMP grade Cannabidiol (CBD) has...

Amsterdam Cannabis Expo 2022 Latest Scam To Target Industry

AN upcoming European cannabis conference, at which 10,000 cannabis companies were purportedly due to visit, is thought to be...

Juicy Fields Scam May Have Been Small Part Of A Much Larger Criminal Enterprise Says Lawyer As He Prepares To Make Evidence Public

JUICY Fields has already been called the biggest scam in Europe for ‘many, many years’, and its impact on...

Seizure Of 32 Tons Of Cannabis In Spain Was Actually Hemp

BETWEEN telephone calls, Francisco Carbó continues finalising contracts for E-Canna, the hemp processing company he owns based in Valencia,...

Must read

Akanda Pulls Out Of Lesotho Amid Ongoing Legal Battle, Bruce Linton Joins SynBiotic, & Ananda Completes Acquisition

Akanda The NASDAQ-listed international medical cannabis operator announced last...

Concerns Grow As Cannabis Sceptic Appointed To Lead Malta’s Adult-Use Reform

ALMOST one year since passing legislation fears are growing...

You might also likeRELATED
Recommended to you