After a period of euphoria, investors who bet on the Canadian marijuana market are now panicking, while the Marijuana Index fell sharply by 19% Friday morning.
Canada’s leading cannabis producers, including Canopy Growth Corp and Aurora Cannabis Inc., have suffered a similar fate, while their stock market rating has declined more than 40% from the highs reached in early January, according to Bloomberg.
“Many investors have followed suit over the last month and many of them will suffer big losses. It’s a bit of a panic, “analyst Jason Zandberg told Bloomberg.
The Marijuana Index, which includes 18 producer titles, has been steadily increasing since November 2017, with very rapid growth recorded in the last days of the year.