Categories Analysis, Cannabis, Trending Stocks

Aphria, Canopy Growth, Aurora Cannabis bow to pressure from vaping fatalities

Leading players in the cannabis industry were bleeding on Monday after the Centers for Disease Control and Prevention (CDC) revealed that it suspects THC-containing products to be the cause of the recent vaping fatalities.

As vaping products account for a major chunk of cannabis sales, weed stocks suffered a massive sell-off, led by Aphria Inc (NYSE: APHA), which was down 5.8% during intra-day trading. Leading marijuana firms Canopy Growth Corporation (NYSE: CGC) and Aurora Cannabis (NYSE: ACB) were both down over 4.5%.

canabis stocks
Picture Courtesy: Canopy Growth

As per BDS Analytics data, vaping products made up a quarter of all licensed cannabis sales in Colorado, California, Arizona, Oregon and Nevada through July. The market panic is, therefore, not surprising.

In the wake of over 12 deaths and many hundreds falling ill, cannabis vape products have reportedly declined 15% till the September first week. Inventors fear a government crackdown on cannabis-based vape products, which would drastically dent sales at these firms.

CannTrust may be cheap, but stay away from this pot stock

On the other hand, there is also a possibility of the health scare helping the legal weed producers. Counterfeit brands that use illegal cannabis are thought to be the primary perpetrator of this health hazard. These brands – including Dank Vapes, Moon Rocks and Mario cards – are easily available online, and come in packaging that looks like the licensed ones.  

For long, weed associations such as the National Cannabis Industry Association (NCIA)  have been putting pressure on the government to federally legalize and regulate the products.

While it is yet to be established whether the vaping products of the big players are safe, the recent turn of events is likely to prod the government into taking a quick decision with weed regulation.  

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

United Parcel Service (UPS) seems on track to regain lost strength

Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top