Call it Bounce Back Monday. Because that's what the big names in the cannabis industry on both sides of the Canada-US border did yesterday and won across the board. But not all of them had recovered from last week's dips.
And that's how the story of marijuana stocks goes lately. Late last week, the question investors were asking themselves was: Will cannabis stocks turn the corner? Because last week turned out to be another punishment on the cannabis markets.
A list of the industry's big names took a beating last week, including Tilray (NASDAQ:) (TSX:), Canopy Growth (NASDAQ:) (TSX:), Trulieve Cannabis (OTC:) (CSE: ) and Curaleaf (OTC:) (CSE:).
In the case of two prominent US-based industry names – Trulieve and Curaleaf – both posted double-digit declines in their stock prices over the past week. But yesterday they both recovered.
Trulieve shares saw the biggest dip, losing nearly 11% to close at $18.64 last Friday. But by yesterday's close, the stock gained just over 6% to close out the session at $19.70.
Curaleaf investors witnessed a similar pattern as the stock lost about 10% last week and closed at $7.04 last Friday. But by the end of yesterday's session, the stock price gained just over 3% to close at $7.26
For Canada-based cannabis growers, the swings have not been so harsh, with declines last week more than offset by gains made yesterday.
Canopy Growth shares gained just over 10.5% yesterday, closing at $8.04, slightly higher than Tuesday's highs of $7.69.
Weekly canopy growth chart.
On Monday, Tilray shares gained more than 8.5% to close at $5.96, an improvement from last Monday's high that wiped out all week.
Hexo's NASDAQ listing in jeopardy trading days.
The notification amounts to a warning and has no immediate effect on the company's listing on the stock exchange, but it does start the clock on a 180-day period. If the stock does not start trading above the $1 threshold during that period, extending through July 25, the stock will be delisted.
Although Hexo shares gained nearly 13% on the NASDAQ yesterday, they closed at 56 cents.
The notice will not affect the listing of the company on the Toronto Stock Exchange wherever it is traded.
Thailand becomes the first Asian country to decriminalize Pot
Thailand became the first first country in Asia to decriminalize cannabis, but there are still some questions about how that will work.
The Ministry of Health of the Thai government removed cannabis from the list of controlled drugs last week. The next step is to have the substance removed by the Food and Drug Administration, which will be done later this year. Whether this means recreational possession of marijuana is still considered a crime, however, is not entirely clear.
In 2020, Thailand became the first Asian country to decriminalize the production and use of marijuana for medical purposes. This latest step is seen as the first step toward developing the cannabis and hemp industry with the goal of improving medical use, as well as other less defined health benefits that may be associated with recreational use.
According to media reports, a government spokesman said one of the goals of easing restrictions on cannabis is to create "income for the public".
