Canadian Cannabis Stocks Weighed Down By Capital Raises And New Issues

An employee displays cannabis buds in a greenhouse in Ontario, Canada. Photographer: Cole Burston/Bloomberg

Despite the historic news that Canada has finalized its legalization of cannabis for adults, with an implementation date of October 17th, the stocks of the Canadian producers have been under pressure lately, with the Canadian Cannabis LP Index closing on Friday at a 2018 low:

Canadian Cannabis LP

So far in 2018, the index has declined 19.1%, but, despite the correction, it has gained 132% over the past year.

I have discussed previously some of the factors weighing on the market in 2018. In early February, I cited the large amount of capital that had been raised by the licensed producers (LPs). At the time, the LPs had raised C$1.2 billion in equity and convertible note sales. Through June, the capital raised

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