Recreational cannabis will be legalized across Canada in less than a week. Many market analysts speculated the rise of cannabis penny stocks just before legalization, but that doesn't seem to be the case this week.
Earlier in the year, cannabis companies began trending on the markets, as legalization began sprouting up across North America. California legalized recreational cannabis in January of this year, and the demand on Canadian cannabis rose. It remains unknown at this time why Canadian cannabis companies' shares are dropping this week.
Let's take a closer look at two cannabis penny stocks that are trading in the red this morning on the TSXV.
Emerald Health Therapeutics, Inc. (TSXV:EMH)
Emerald Health Therapeutics is headquartered in Victoria, BC, and with its subsidiaries, produces and sells medical cannabis across Canada. The company was formerly a pharmaceutical company but switched to cannabis in June of 2015.
This morning, the cannabis penny stock announced that it has promoted one of its employees, Paul R. Dillman, Jr, to Executive VP of Global Sales and Marketing. Dillman was previously the Vice President of Sales and Marketing at Emerald.
Despite the positive news and obvious growth of the company, EMH shares are down today.
According to Yahoo Finance, the cannabis penny stock is trading at $4.69 a share, down -$0.26 (-5.25%).
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WeedMD Inc. (TSXV:WMD)
WeedMD is headquartered in Aylmer, Ontario, and produces and sells medical marijuana in Canada. The latest news on WeedMD was released nine days ago when it was placed on the OTC market.
"Having our company traded on the OTCQX Best Market allows us to have more visibility in the U.S market and to build greater liquidity among current and future shareholders," said Keith Merker, CEO of WeedMD. "We are excited to be growing our investment community through a well-respected platform."
At the time of writing, the cannabis penny stock is trading at $1.88 a share, down -$0.11 (-5.53%).
Featured Image: Depositphotos/© mikhafff1984
