Canadian Penny Stocks Moving High On Cannabis Industry News

In the months following October 17, 2018, Canada famously decided to legalize the recreational use of cannabis, nationwide. The country has since become an instrumental example for other countries looking to introduce cannabis legislation.

Canadian Marijuana Stocks Appeal To Investors

Canada’s weed industry has not been without trouble. The country has run into issues regarding inventory. It has also seen the Canadian government fail to make clear what can/can’t be sold. Nevertheless, Canada has demonstrated that a G7 nation can legalize cannabis and have it greatly benefit the country for a multitude of reasons.

Following the advent of Canada’s nation-wide legalization, other countries, including states within America, have put forth legislation. Canada’s decision to legalize recreational cannabis gave the cannabis industry a huge boost. This has resulted in droves of investors looking to the sector for potential opportunities. Public support may be connected to recent reports from medical experts suggesting the potential health benefits of medicinal cannabis, namely cannabidiol (CBD).

Industry Catalysts Turn Penny Stocks Into Cash Cows

Curaleaf (CURLF)(CURA) is a Canadian listed cannabis stock which saw its shares enjoy an impressive 50% boost to trading during the week of March 17, with shares trading as high as $10.15 per share. We mention this company now because it wasn’t that long ago that this cannabis stock was considered a penny stock. The Company made headlines after signing a deal with CVS Health. The pharmacy giant’s stores will begin carrying CBD products provided by Curaleaf.

In addition to Curaleaf’s shares responding to headlines, other Canadian penny stocks reacted favorably to the industry catalyst. MedMen (MMNFF) (MMEN) saw its shares rally to highs of $3.50 on March 22. This was after trading as low as $2.80 one week prior. The company announced that it signed a binding term sheet for a senior secured convertible credit facility of up to US$250,000,000. This came from funds managed by Gotham Green Partners, an investor in the global cannabis industry.

“This strategic partnership with Gotham Green Partners represents another key milestone for MedMen and stems from our long-standing relationship with The Cronos Group and GGP’s brand portfolio. The growth capital will be used to operationalize the balance of our footprint and we look forward to creating further alignment with GGP and their global cannabis platform.”

Adam Bierman, CEO of MedMen.