The feeding frenzy quickly moved from the OTC Pink Marketplace and FINRA bulletin board to Canadian stock markets. As soon as legalization became real in a few states, penny stock shells, companies that failed as a mining company that then became a failed software company suddenly became cannabis companies. Exemplify by the reasons discussed in the below article, MedMen Enterprises and PharmaCann terminating the proposed acquisition that was trumpeted as the largest US cannabis company once valued at $682 million. Stock markets are increasingly skittish over volatility and overdue recession fears in general and legal cannabis companies are challenged by looming supply and demand imbalance. Attention to business fundamentals is tamping down valuations. https://www.cnn.com/2019/10/10/business/medmen-pharmacann-blockbuster-cannabis-deal-falls-apart/index.html Investing fads in emerging industries often follow a typical path and cannabis stock has done so at a rapid pace.
Read the full article @ Cannabis Law Report