The marijuana industry faces a historic crisis, since its fall in the stock market has reached 50% in two months.
Several factors are influencing, among them that the demand has dropped due to the pandemic and that the main companies in the sector and many retailers have already signed a document in which they ask the United States Government to remove taxes on the consumption of this drug to allow them to compete with illegal sale and because they are currently “at the edge of collapse”.
Canopy Grouth has already lost 45% of its value since November highs, Cronos Group 48%, Aurora Cannabis 36%, Tilray 50% and Hexo Group 56%. On the other hand, since the highs of February, the falls of all these groups always exceed 70% and in cases such as Tilray or Hexo, they reach falls of 89% and 94% respectively.
Another problem for the sector is that the US bank is closed for these companies.
