TORONTO (Reuters) – Canadian marijuana stocks fell to their lowest level in more than four months on Tuesday, hit by lingering concerns about possible delays to legalization of recreational use, disappointment over proposed distribution rules and profit-taking following a strong run-up to a January peak.
Canadian marijuana stocks climbed steeply between October and January as investors piled in in anticipation of a sales surge when the country legalizes adult use this year. But government delays, stringent packaging and distribution rules, limited product choices and high valuations have dampened investors’ enthusiasm, analysts said.
Canada - Horizons - Marijuana - Life - Sciences
Canada’s Horizons Marijuana Life Sciences exchange-traded fund (ETF) has slumped 45 percent since its January peak. The U.S.-listed ETFMG Alternative Harvest ETF, which began trading on Dec. 26, is down 32 percent from its high, just a hair above a record low on April 4.
The Toronto stock benchmark is down about 6 percent this year.
Government - Officials - Legalization - July - Senate
Liberal government officials have said legalization is unlikely by July as initially expected, with a Senate vote on the draft legislation planned only for June 7.
Last month, Canada’s health regulator set out strict requirements for the packaging and labeling of recreational marijuana, downplaying the brand name. Populous provinces, including Ontario and Quebec, plan a limited...
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