3 Pot Stocks Impacted by COVID-19
It’s official. The World Health Organization (WHO) declared Coronavirus disease, COVID-19, a pandemic on March 11 and it is wreaking absolute havoc on financial markets worldwide – disrupting supply chains in various industries, including the legal cannabis and hemp industry. Our analysts understand that this disease will continue to have a significant impact on the global cannabis and hemp industry. In fact, there are three main reasons why COVID-19 will continue to diminish cannabis and hemp stock values.
Have we seen the bottom of the cannabis and hemp market yet? Our analysts believe that cannabis and hemp stock values may continue to decline in the coming months.
Health experts continue to speculate about how long this pandemic will truly last here in the US but a recent study by the Imperial College of London suggests that we are only at the beginning of an 18-month ordeal.
Here in Colorado, Governor Jared Polis just mandated a shelter in place order – effectively closing any non-essential businesses. This trend continues in several other cities and states where cannabis is legal. In many cases, non-essential businesses include cannabis dispensaries. This will certainly impact local cannabis companies and multi-state operators (MSO), alike, doing business in Colorado and throughout the USA.
3 publicly traded pot stocks will continue to be impacted by the spread of the virus – these include cannabis companies like Curaleaf Holdings, Columbia Care, and Medicine Man Technologies.
Curaleaf is a major MSO player in the cannabis game. Curaleaf is currently in the process of becoming the largest cannabis company in the world with vertically integrated cannabis operations in ten different states – most of which will likely move to adopt and mandate shelter in place ordinances for the next several weeks thereby significantly encumbering sales of cannabis products and eroding stock values.
Columbia Care (CCHWF)
Columbia Care recently made a significant move into the Colorado cannabis market with the acquisition of The Green Solution (TGS) for $140 million. Right now, TGS is the largest vertically integrated cannabis operation in Colorado. They operate over 20 dispensaries and now have cultivation capacity for nearly 50,000 lbs. of cannabis with plans to triple capacity in the next three years.
TGS operates 23 dispensaries in Colorado now with 48,000 pounds of cultivation capacity with combined indoor greenhouse and outdoor flower. The company has plans to expand cultivation to 150,000 pounds by 2023 providing for over 200% growth in the next few years.
Without the ability to sell product, this stock price will certainly be impacted.
Medicine Man Technologies (MDCL)
Few cannabis companies are as ubiquitous to Colorado as Medicine Man Technologies. The company is currently working on acquisitions of a dozen independent cannabis operators and expects to finalize the acquisitions in the coming months. Once the acquisitions are complete Medicine Man will have a total of twelve cultivation operations, seven infused manufacturing operations and thirty-four dispensaries across the state.
The sustained impact from COVID-19 may continue to erode the value of this stock.
3 Pot Stocks Impacted by COVID-19
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