Amidst a media frenzy surrounding marijuana and marijuana stocks which included CNBC’s Marijuana in America: The Colorado Pot Rush, The Marijuana Index™ experienced significant volume and price fluctuations throughout the month of February 2014.
The Marijuana Index™ hovered around $25 at the beginning of February, and closed the month at $56.21, reflecting a gain of 125%. The total index valuation soared beyond $6 billion, partly due to CannaVest (OTCQB: CANV) achieving unprecedented valuations and following several listing additions to the index. Some companies experienced all-time highs while overall trading volume remains strong.
February featured President Obama’s landmark signing of federal legislation which removes barriers for the cultivation of hemp in the United States, and long-awaited advancements in banking regulations were announced which allow legal marijuana businesses to secure loans and setup checking and savings accounts with banks. Though industry insiders remain cautious, the move illustrates a commitment to eliminating challenges inherent in a cash-flushed cannabis business. A group of 18 Congress members even urged President Obama to reschedule marijuana, which he initially stated was not within his executive powers. The President could experience increased pressure on the topic, where marijuana is illogically listed alongside heroin as having no medicinal benefit.
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Notable Gainers in February
Abattis Bioceuticals closed the month of February at $.35 after opening at $.119, reflecting a gain of 194%. Abattis acquired worldwide distribution rights for a line of cultivation products, closed a $600,000 private placement, and signed an LOI to acquire a hydroponic fertilizer company.
Advanced Cannabis Solutions closed the month at $33.15 per share after opening at $14.29, reflecting a gain of 132%. The company recently announced a line of credit of up to $30 million from Full Circle Capital Corp. (NASDAQ:FULL), a closed end investment company, and subsequently filed an S1 registration statement with the SEC.
CannaVest once reached 52-week highs of $201, reflecting the company’s low public float and recent developments which included increased production from their US Hemp Oil subsidiary, and PhytoSphere Systems winning a third High Times Medical Cannabis Cup award for Highest CBD Concentrate. Shares closed the month of February at $147.07 after opening at $68.01, reflecting a gain of 116%.
New index addition Zoned Properties opened February at $2.66, and closed the month at $14.29, reflecting a gain of 437%. The company signed a purchase agreement for an 83,000 square foot facility in Tempe, Arizona and made a key hire in VP of Operations and Sustainability, Bryan McLaren.
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Partial Index Listing Press & Filings from February
mCig updated shareholders on its spin-off of VitaCig, Inc., a creative move which could bolster mCig’s balance sheet through the contribution of mCig CEO Paul Rosenberg’s pro-rata distribution of 244,931,627 VitaCig shares under the future S1 registration. The filing is targeted for April 5th, 2014. Shares of the company finished February at $.459 on strong volume, and the company expressed future desires to quality for a NASDAQ uplisting.
Enertopia inked a joint-venture agreement with The Green Canvas Ltd. in what could become a 55,000 square foot production facility in Saskatchewan, Canada. Subject to various conditions, Enertopia may acquire up to a 75% interest in the joint venture.
Cannabis Science entered the market in Spain through confidential negotiations with key players in the country which has nearly 47 million inhabitants. The company announced plans to conduct cannabis research and engage in various operations, and closed the month relatively flat after hitting a multi-year high of $.293 on February 5th. Volume was extremely heavy throughout the month, with as many as 86 million shares trading in a session (also on February 5th).
Vape Holdings issued an 8K filing on Friday detailing revised terms of the pending acquisition of H.I.V.E. Ceramics – a cutting-edge ceramic technology for cannabis concentrates and accessories. Previously executed for 30,000,000 common shares, the 8K details more favorable acquisition terms which reflect the company market cap, to a maximum of 5,000,000 common shares upon conversion of preferred shares which feature accelerated voting rights and gross revenue thresholds. The 8K also revealed pending patents on H.I.V.E.'s technology, and may illustrate management's confidence in potential revenue from the sale of H.I.V.E. products.
Nuvilex announced up to $27 million in equity commitments from Chicago-based institutional investor Lincoln Park. Proceeds are expected to advance late-stage clinical trials in advanced inoperable pancreatic cancer, and propel research “into the use of constituents of marijuana in the emerging medical marijuana arena,” as well as fund general operations. According to company news, Lincoln Park's investment of $2 million for 8 million restricted shares illustrates the fund's long-term interest in Nuvilex research and trials. Institutional interest in the marijuana sector has accelerated, with Lincoln Park's deal in Nuvilex and Full Circle Capital's deal in Advanced Cannabis Solutions marking large potential cash infusions.
Changes & Additions to The Marijuana Index™
The Marijuana Index™ changed its component weighting from "market cap weighted" to "price weighted," and continues to reflect upon utilizing the most effective calculation methods to account for macroeconomic indicators affecting the marijuana, cannabis, and hemp sectors.
Several companies were added to the The Marijuana Index™ in February, including Enertopia, Puget Technologies, IMD Companies, Zoned Properties, Breedit Corporation, Mentor Capital, Aerogrow, and AVT Inc. More changes are expected as mergers and IPOs are announced and the selection process is refined.
About The Marijuana Index™
Partnered with Cannabis Financial Network (http://www.cannabisfn.com/), The Marijuana Index™ is the first and only registered equity tracking index for marijuana stocks, cannabis stocks, and hemp stocks - providing investors and listed companies with dynamic market data and streaming content. Currently representing more than thirty publicly traded issuers, The Marijuana Index™ provides marijuana investors with a medium for research, charts, and centralized news for industry stocks. Readers are urged to visit http://www.marijuanaindex.org/ for up-to-date information and to sign up for updates. Follow The Marijuana Index on Twitter @MarijuanaIndex.
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