BC declines Emerald Health Therapeutics: No one wants to be left behind, but that's what has happened to Emerald Health Therapeutics (TSXV:EMH).
As a result, the stock has spent the past two days in the red zone on the market. And why did it get left behind? Scratch that—who left the cannabis company behind? Well, you'll see.
BC has its Cannabis Suppliers... All 31 of Them
Earlier this week, 31 companies were chosen to supply British Columbia with its recreational cannabis. Companies included Canopy Growth (TSX:WEED) and Whistler Medical Marijuana Corp (private).
By signing the MoU with the BC Liquor Distribution Branch, these cannabis companies will be providing the mountainous province with 150 different strains of cannabis for wholesale distribution.
BC Declines Emerald Health Therapeutics
Emerald didn't make the cut. This may not seem like a big deal, but it is; when a province shuts you out, and when 12 out of the 31 chosen are BC companies (like Emerald) one can't help but wonder what went wrong.
Investors were clearly thinking along the same terms. Since failing to secure a supply deal, Emerald's shares have extended losses. Today is no exception.
Emerald Health Therapeutics Stock: Down, Down, Down
Looking at the stock, I'm sure shareholders are feeling a little blue. Adding two consecutive days of trading in the red on top of not being included in the supply deal, Emerald Health Therapeutics has seen better days.
According to Google Finance, at 1:26 p.m., the cannabis company was trading at $2.72. This means the stock was down 7.48% at the time.
Maybe it Will Work Out?
Contrary to popular belief, there are a number of Canadians who are against the legalization of recreational cannabis. Not to mention many are worried about repercussions, like the Black Market thriving even after it's legalized.
Therefore, maybe it's a good thing Emerald was left behind. If the people of British Columbia end up regretting the legalization, or if there are problems with the chosen suppliers, Emerald may be able to swoop in and do something to save the day.
What do you think?
Featured Image: Twitter