The Marijuana Index: May 2018 Recap

The North American Marijuana Index, a stock index that tracks the top performing cannabis stocks in the U.S. and Canada, increased 2% in May.

2 min Read
06.21.2018

By Dan Nicholls

Dan Nicholls, CFA is the Director of Capital Markets Advisory with Ello, providing financial advisory services to cannabis companies including capital raising, M&A, valuations, forecasting and strategic guidance. Dan has extensive experience providing investment banking and capital raising services to cannabis companies. Before joining Ello, he was a Vice President at MJIC, where he advised cannabis companies on raising investment capital and provided outsourced CFO services. Previously, he worked at a boutique investment bank where he led $1 billion in healthcare M&A transactions. Dan is also the creator of the Marijuana Index, a stock index that tracks the top cannabis stocks in the U.S. and Canada which has been featured in the Washington Post, CNBC, Forbes and over 100 other publications. He is also the Co-Founder of CannaEvents, a cannabis events company.

The North American Marijuana Index, a stock index that tracks the top performing cannabis stocks in the U.S. and Canada, increased 2% in May.

The North American Marijuana Index is a combination of the U.S. Marijuana Index and the Canadian Marijuana Index.

PDF Download: The Marijuana Index – May 2018 Summary Report

U.S. Marijuana Index

The U.S. Marijuana Index increased 7% in May. Constituents on the U.S. Marijuana Index experienced mixed results for the month, with nine companies increasing and eight companies decreasing. Two companies saw outsized gains: CV Sciences Inc. CVSI increased 91% and MariMed Inc. MRMD increased 43%. The Dow Jones Industrial Average and Russell 2000 ended the month up 1.0% and 5.9%, respectively.

The month was highlighted by MedMen MMEN:CNX, a Los Angeles-based cannabis company, going public on May 29^th with a valuation of $1.6 billion, making it the first U.S.-focused cannabis retailer to go public with a valuation over $1 billion.

The average trading volume of constituents on the U.S. Marijuana Index decreased 18% in May compared to April.

Canadian Marijuana Index

The Canadian Marijuana Index decreased 1% in April, its second consecutive month of declines. The month started with Aurora Cannabis’ ACB:CA acquisition of CanniMed Inc. CMED:CA on May 1^st.

Constituents on the Canadian Marijuana Index experienced mostly negative results for the month, with 15 of the Index’s 24 constituents decreasing for the month.

Meanwhile, Canada’s stock market experienced mixed results in May, with the S&P/TSX Venture Index, Canada’s leading small-cap index, decreasing 2.6% while the S&P/TSX Index increased 2.9%.

The average trading volume of constituents on the Canadian Marijuana Index decreased 5% in May.

The Marijuana Index: The Marijuana Index tracks the leading cannabis and hemp stocks operating in the United States and Canada. It offers investors the tools and information they need to monitor the public markets in this growing industry. The Marijuana Index is owned and managed by MJIC, Inc. The Marijuana Index is for informational purposes only. Inclusion in the Marijuana Index is not an endorsement or recommendation for any company. For more information, please visit www.marijuanaindex.com.