It's now the first day of October, and Canadian cannabis penny stocks are moving in the green on the TSXV. Canadian cannabis companies have made a monumental rise in the markets this year after parliament passed Bill C-45 mid-June 2018.
Adult-use recreational marijuana use will become legal across Canada on October 17th. Cannabis companies are scrambling to keep up with demand. With so many new companies transitioning to the industry, it's hard to keep up with the companies that stand out from the rest.
Let's take a closer look at a few cannabis penny stocks that are trading in the green today.
Cannabis Penny Stocks: Aleafia Health Inc. (TSXV:ALEF)
Aleafia Health is located in Concord, Ontario, and operates as a vertically integrated cannabis company.
Four days ago, the cannabis penny stock announced it had signed a supply MOU with CannTrust Holdings Inc. (TSX:TRST). CannTrust will purchase up to 15,000 kg of marijuana from Aleafia in 2019.
“This major supply MOU is a testament to the sustained momentum of Aleafia’s business strategy,” said Aleafia CEO Geoffrey Benic. “Aleafia now boasts two cannabis production facilities, along with a medical cannabis clinic network that has attained 50,000 patients. The exponential growth achieved by our company will ensure we continue to provide sustained long-term value for both our patients and shareholders.”
Surprisingly, this announcement didn't positively affect the price of ALEF shares. According to Yahoo Finance, ALEF is trading at $3.15 a share, up $0.04 (+1.29%). In the last five trading days, ALEF is down -13.46%.
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Cannabis Penny Stocks: Auxly Cannabis Group (TSXV:XLY)
Auxly Cannabis is headquartered in Vancouver, BC, and operates as a cannabis streaming company. The cannabis penny stock provides funding for cannabis production. The company was formerly known as Cannabis Wheaton Income but changed its name back in June of 2018.
Auxly hasn't had any big company news in about 11 days. On September 20th, the Canadian cannabis company announced it had completed a $7,500,000 equity investment in FSD Pharma Inc. (CSE:HUGE). At that time, the penny stock rose nearly 30% in a day's trading.
According to Yahoo Finance, XLY is currently trading at $1.19 a share, up $0.04 (+3.48%).
It is highly likely that Canadian cannabis companies will continue to rise in the run-up to national marijuana legalization.
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