By Nichola Saminather and Shariq Khan
By Nichola Saminather and Shariq Khan
Oct 17 (Reuters) – A yr after Canada legalized use of leisure marijuana hashish shares have misplaced half their market worth, and buyers betting that the launch of higher-margin pot-infused drinks and different merchandise will rapidly elevate shares could also be in for a bumpy experience.
So-called hashish 2.0 – legalization of marijuana derivatives together with edibles, drinks, extracts and vape pens – takes impact on Thursday, with gross sales seen starting in mid-December. Whereas that’s anticipated to assist sagging share costs, the essential issue for a turnaround is a big enhance within the variety of shops promoting the merchandise, buyers, corporations and analysts mentioned.
Share costs within the Horizons Marijuana Life Sciences Index ETF HMMJ.TO have slumped as corporations’ revenues missed expectations. Hashish producers, buyers and analysts have blamed Canadian rules which have slowed the opening of recent shops, strangled gross sales and imposed increased prices.
Funding financial institution and advisory agency Seaport World figures …