Whitefish, MT / March 31, 2014 / The Marijuana Index™ moved lower over the past week due in large part to a 40% drop in shares of Cannavest Corp. (CANV) along with broader declines across the sector. Many traders appeared to be locking in profits after a volatile start to 2014 although cannabis stocks showed signs of recovery during Friday’s session and long-term industry catalysts like regulatory reform remain very intact.
Several cannabis companies moved higher last week. For instance, Easton Pharmaceuticals Inc. (EAPH) jumped more than 20% mid-way through Friday’s session after announcing a new LOI for the creation of a possible joint venture with another U.S. company to finance a private Colorado grow operation. The firm also remains in negotiations with regards to its Canadian medical marijuana initiatives.
On a regulatory level, cannabis activists were bolstered by the fact that Florida Senators approved the use of medical marijuana in certain patients. The move in one of the country’s most conservative states follows efforts in New Jersey – another hesitant state – to reform their cannabis laws. On April 1st, Canada’s new MMPRs will go into effect, providing a potentially large catalyst for stocks involved in the space.
- Medican Signs LOI Targeting MMPR License – Medican Enterprises (MDCN) signed a LOI to acquire a 50% stake in a Canadian firm that’s seeking an MMPR license to grow and sell cannabis under Canada’s new legal structure.
- Florida Senate Panel Approves of Medical Marijuana – Senators in Florida voted to let doctors prescribe non-euphoric strains of marijuana for patients suffering from things like seizures or cancer pain after hearing testimony.
- Surna Makes Acquisition, Appoints Zynga Co-Founder as CEO – Surna Inc. (SRNA) acquired a cannabis intellectual property firm led by Zynga cofounder Tom Bollich, who will become the company’s new CEO.
- OTC Markets Tightens Standards & Requirements – OTC Markets exchanges implemented rules designed to crack down on scams and bolster transparency, including a $0.01 bid requirement that could affect cannabis stocks.
- Talisman Leases Colorado Property for Cultivation – Talisman Holdings Inc. (OTCBB:TMHO) agreed to lease a 35 acre property in Routt County, Colorado zoned for agricultural purposes to eventually cultivate cannabis.
Feature: Interview with BudBasic’s James Keyes
In our latest episode of the Cannabis Financial Network’s Thought Leaders Series, we spoke with Mr. James Keyes who is the principle of a new company called Weed Consolidation Corp. (WCC) and a creator of BudBasics.
What to Watch This Week
The cannabis sector moved lower over the past week, but long-term industry catalysts remain intact and buying appetite improved during Friday’s session. This week, investors should watch for buying to return to the sector while keeping an eye on the various regulatory initiatives that are still in play throughout the U.S. On April 1st, Canada’s MMPR will also go into effect providing a potentially large catalyst to stocks.
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