STATES CHRONICLE – The prices of marijuana are slowly decreasing, probably affecting the cannabis stocks. If the prices go down, dealers might suffer significant profit drops. Since marijuana was legalized in many states in the US, there appear more and more cannabis growers on the market. What is more, more states allow citizens to grow marijuana.
The prices of cannabis which were registered late in 2016 were representing half of the records established at the beginning of 2016. Marijuana growers and dealers are wondering whether this trend will persist and will affect the stock of Medical Marijuana, GW Pharmaceuticals, Aurora Cannabis and Aphria.
Most cannabis stocks do not appear as if they had suffered significant losses so far. The reason may be hidden in plain sight. Marijuana prices did not decrease in their markets. For in example, in Canada, Aurora and Aphria lead the market. The stocks of medical marijuana companies had quadrupled during the last year. Nevertheless, the Canadian market’s dynamics work differently from that of the US.
Even if Canada permits residents to use medical marijuana, it imposes some limitations when it comes to such usage. Before consuming this drug, patients need a healthcare specialist authorization to be allowed to use medical marijuana. Residents are allowed to grow this plant in limited amounts and for medical usage only. However, any purchases need to make from distributors who are licensed, like Aurora and Aphria.
Medical Marijuana, Inc., provides cannabis in the United States, where the prices have dropped. Nevertheless, during the last year, the stock of the company increased by approximately 400%. Even if marijuana prices have been decreasing, the market of Medical Marijuana continued to boost due to the legalization of this drug in more and more states.
The cannabis stocks of GW Pharmaceuticals were not expected to be affected by the wholesale price of marijuana. This company did not yet launch a product on the market in the United States Positive clinical outcomes for Epidiolex, the experimental cannabinoid drug. Moreover, GW Pharmaceuticals did not anticipate the potential US approval in the near future, even if it fueled their shares to grow to almost double in just one year.
Specialists noted that even if cannabis stocks were not affected by marijuana prices yet, this does not mean that they will not get changed in the future.
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