CANADIAN cannabis stocks recorded their first monthly gain for over a year as markets across the globe rallied from the earlier Covid-19 crash.
The Canadian Cannabis Licensed Producer (LP) Index rose 7.6% to 265.65, still well-off its all-time closing high of 1314.33 in September 2018, reports New Cannabis Ventures.
The last week of April also saw the total amount of capital raised exceed the same weekly period in 2019.
The Cannabis Deal Tracker recorded 10 transactions raising a total of US $171.2m, against 14 transactions totalling $82.9m in the same period in 2019.
An Ex-Canopy Growth Collective
This was primarily due to the $150m raise by Collective Growth Group led by former Canopy Growth executives Bruce Linton, Tim Saunders and Geoff Whaling.
US Corona beer maker Constellation Brands bought additional shares of Canopy Growth – through an existing warrant option – increasing its stake to 38.6%.
While sales have been strong during the early stages of the pandemic the long-term outlook for legal Canada cannabis may be less certain, with one knock-on effect being the slow down in the roll-out of retail stores.
This will be particularly relevant in the most populous state Ontario which has less than 100 stores, and could likely accommodate 10 times that number.
This is reflected in the Canadian Imperial Bank of Commerce Capital Markets which slashed its prediction for the growth of the recreational market by over a quarter to CA$2.5bn. Last year’s sales totalled $1.2bn.
Canadian Approach For UK’s Sativa Group
Leading cannabis scientist Dr Ethan Russo, formerly of UK firm GW Pharmaceuticals, has teamed up cannabis educator Nishi Whiteley to form CReDO Science, to focus on further research and development of the endocannabinoid system.
Colombian cannabis firm Clever Leaves has successfully raised US$14m to support its domestic and European ambitions.
Canadian Securities Exchange-listed Mota Ventures announced it has completed its purchase of Spanish firm Sativida; a developer and retailer of organic CBD oils and cosmetics across Europe.
Meanwhile Hemp Industry Daily reports that CBD of Denver – a CBD and hemp-oil manufacturer in Colorado has plans to buy CBDWelt24, and its two hemp cultivation facilities in Switzerland, by the end of the month.