In under two weeks, adult-use recreational cannabis will be legalized across Canada. Many analysts expected cannabis penny stocks and cannabis stocks to rise in the ramp up to legalization, but that has yet to happen.
It remains unknown if it will, but rest assured Canadian cannabis companies are feeling the pressure as the days tick away. When California legalized recreational marijuana back in January of this year, many expected demand for recreational and medicinal cannabis to increase.
Tax revenue from the cannabis industry has been below expectations, and authorities are finding more and more illegal pot markets within the state. There are a lot of things that are uncertain with the legalization in Canada, but we’ll soon find out.
Let’s take a closer look at a Canadian cannabis penny stock and its latest announcements.
LGC Capital Ltd (TSXV:LG)
LGC Capital is based in Montreal, Quebec, and operates as an investment holding company in private cannabis operations. LGC operates in Canada, Europe, South Africa, Australia, and Jamaica.
This morning, LGC Capital announced that a company that it has a minority interest in has completed its second commercial medical cannabis harvest. Due to this announcement, the cannabis penny stock jumped up on the TSXV.
John McMullen, LGC’s CEO, commented:
“Our partner in Australia has achieved a great deal in a short timeframe in a highly regulated environment. We are particularly pleased that Little Green Pharma has started suppling [sic] Australian patients with premium-grade medical cannabis and are now involved in cancer trials.”
LGC is the only cannabis penny stock to stand out on the Canadian market today, and its shares have currently zero movement on the OTC.
LG Stock Movement
According to Yahoo Finance, the cannabis penny stock is trading at $0.20 a share, up $0.02 (+11.11%). For the month, LG shares are up 17.64% and year-to-date, the cannabis company’s shares are down nearly -65%.
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