Sales of marijuana concentrates increased 40.5% last year in the adult-use states of California, Colorado, Nevada and Washington as well as the recreational and medical markets in Oregon.
() stock has remained flat at 12 cents per share over the course of January 2021 compared to a 0.3% rise for the broader market as represented by the ASX 200.
However, the benchmark Alternative Harvest ETF has dramatically risen in January by about 33% from US$14.35 to US$18.97.
Thus far in February the ETF has moved up another 82% and closed at US$34.6 on February 11.
MMJ is witnessing significant follow through on the buying action that now appears to have come “down cap” into many of its investee companies as well.
Harvest One and WeedMD have seen significant gains over the last several weeks.
New federal legalisation bill
Furthering the progress in the U.S., key U.S. Senate leaders from the Democratic party held a meeting with marijuana stakeholders on Friday, seeking input in creating a new federal legalisation bill.
The senators released a joint statement announcing the plan earlier this week that decried the failures of marijuana criminalisation and called for a federal policy change that prioritises repairing the harms of prohibition.
The senators did not go in-depth into the details of the forthcoming reform proposal, but one commitment from the start, according to attendees, is that the Senate bill will at a minimum de-schedule cannabis and seek to regulate it with a justice- and equity-focused approach.
Marijuana concentrates sales jump
According to MJBizdaily and Seattle-based data analytics firm Headset, sales of marijuana concentrates surged 40.5% last year in the adult-use states of California, Colorado, Nevada and Washington as well as the recreational and medical markets in Oregon as consumers become more comfortable with dabbing and associated technologies.
This bodes well for MMJ’s portfolio names such as Embark Health which recently shipped their first batch of concentrates to the provincial buyer of cannabis in British Columbia with the company’s Hank brand available across the province.
