There is a lot of information getting pumped out into the world today. Energy stocks are increasing after two companies announced a pivot into the blockchain industry, President Trump went on a massive Twitter rant this morning, and Bitcoin just fell below the $10,000 mark. Meanwhile, there are a few cannabis stocks dropping on the CNSX exchange.
What Happened?
As mentioned, there are two cannabis stocks dropping on the CNSX exchange today: Golden Leaf Holdings (CSE:GLH) (OTCMKTS:GLDFF)and True Leaf Medicine International Ltd. (CSE:MJ) (OTCMKTS:TRLFF).
Seeing as Golden Leaf Holdings dropped considerably last week as well, let’s take a look at the Toronto-based company first.
Golden Leaf Holdings
On January 12th, we reported that Golden Leaf Holdings was trading at $0.44 at one point during the trading day, which put the stock down 7.37%.
This drop came as a surprise to us as it was only the week before that the company had disclosed a $7.5 billion bought deal financing and announced that it had selected a new independent auditor. Based on that news, we would have thought Golden Leaf Holdings would have been seeing green, but it turned out to be the opposite.
A similar situation arose today. Despite announcing on Tuesday, January 16, that it had selected Craig Eastwood to be its new CFO, the stock dropped almost 5%. Currently, the stock is trading at $0.45, which puts the stock down 4.26%.
While some might not consider this to be a significant drop, and while it is not as bad as last week’s decline, it is still surprising considering Mr. Eastwood has years of experience that could prove to be beneficial for the cannabis oil solutions company.
That being said, maybe the drop occurred because investors have taken a liking to Golden Leaf Holdings outgoing CFO, Eugene Hill, who announced that he will be stepping down to pursue other opportunities.
There's a chance investors have come to the conclusion that if Mr. Hill wants to pursue other business opportunities, Golden Leaf Holdings isn’t offering anything worthwhile. Or, perhaps Mr. Hill just wanted a change of scenery.
Either way, the timing of Hill’s departure and the nearly 5% decline can’t just be a coincidence, can it?
True Leaf Medicine International
Currently, True Leaf Medicine is trading at $1.50, which puts the stock down $0.06, or 3.85% on the CNSX exchange.
Like Golden Leaf Holdings, there is no direct cause for the almost 5% drop today. In fact, the Vernon, British Columbia-based company has had a positive couple of months leading up to today’s trading session.
From January 12 through to January 14, True Leaf Medicine International participated in this year’s Lift Cannabis Expo, which gave the company the chance to attract attention from new investors. Further, on January 12, the company disclosed that it had administered an initial closing of the announced Regulation A+ offering for gross proceeds valued at $6.18B for 8,883,590 shares.
The Takeaway
When it comes to Golden Leaf Holdings, I won’t be surprised if the stock continues to drop next week on the CNSX, as it has had a rough couple of weeks on the market despite increasing almost 30% on December 27.
As for True Leaf Medicine, the Canadian company has been relatively successful lately, so I wouldn’t be surprised if this drop was just a one-off.
Featured Image: Depositphotos/© iriana88w
