January was a booming month for marijuana stocks. Most of the major players in the game saw significant gains in their share price, but as February approached that quickly changed. Despite the market correction, Cannex Capital Holdings (CSE:CNNX) (OTCQX:CNXXF) shares dominated this month. The company released major announcements, impressing investors.
Will the marijuana stock continue its share climb into March? Let's find out!
Cannex Capital Stock Up Nearly +75%
Cannex Capital Holdings has seen a nearly +80% rise in its shares in the month of February on both the CSE and OTCQX. The company leases properties and supplies to cannabis cultivators, processors, and dispensaries in the US and Canada.
The marijuana stock saw slight corrections at the beginning of the month but has skyrocketed this past week. On February 1st, Cannex announced it had retained Hybrid Financial Ltd to provide marketing and branding distribution services. On February 25th, Cannex released its largest news of the year yet, which is most likely the reason behind its major share spike.
Cannex Capital released news that it would 100% acquire Pure Ratios Holdings Inc, a San Diego-based CBD wellness company. After the announcement, CNNX jumped up 15%, which was just the first major spike of the stock. CBD is a growing sector within the cannabis space, and one many cannabis companies are now pivoting to.
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On February 27th, the marijuana stock announced that 4Front Holdings closed two acquisitions in Massachusetts and Arizona. Back in November, 4Front and Cannex signed a binding letter agreement to merge businesses, with an all-stock transaction. The press release explains:
"The combined entity will represent a new standard for operational excellence and integrity under one umbrella within the cannabis industry."
The new acquisitions in Massachusetts and Arizona are important because both states are major regulated cannabis markets. 4Front acquired Massachusetts vertical license holder Health Pharms, which owns two dispensaries. With this acquisition, Cannex brands will likely hit the Massachusetts market in mid-2019. Recreational marijuana was legalized in the state last year, and the first sales of recreational cannabis began in mid-November 2018.
4Front also acquired PHX Interactive, LLC, which operates Greens Goddess Products. Greens Goddess currently owns the Herb'N dispensary in North Phoenix, which is expected to begin its processing and cultivation sometime in 2019.
Marijuana Stock Movement
According to Yahoo Finance, CNNX is seeing significant gains today as well. At the time of writing, the marijuana stock is trading at $1.72 a share, up +$0.15 (+9.55%). For the week, the stock is up +54% and in February, CNNX is up +72%.
On the OTCQX, CNXXF is currently trading at $1.29 a share, up +$0.08 (+7.21). For the week, the marijuana stock is up +53% and for February, it is up +70%.
Where do you think Cannex will go from here?
Featured Image: Canva
