The ‘Horizons Marijuana Life Sciences Index ETF’ (HMMJ) — viewed as a benchmark for the North American cannabis industry — entered a downward slide last week despite positive news from New York, after regulators reached a deal that will see recreational marijuana become legal in the state.

According to a statement from the office of New York Governor Andrew Cuomo, the government estimates that once the program is fully rolled out it will generate up to 60,000 new jobs, more than $350 million in tax revenue, and potentially spur “$3.5 billion in economic activity.”

While the details of the newly negotiated bill are yet to be released to the public, Rochester Mayor Lovely A. Warren has proposed that the tax revenue generated by recreational cannabis sales could be used to fund a universal basic income (UBI) scheme aimed at reducing the city’s socioeconomic class divisions.

“We have passed the point of legalized cannabis. It’s in New Jersey. It’s in Massachusetts. To say we’re going to stop it is not an option. It is here. The only question is, do we regulate it here, do we gather the revenue here, or do we have people driving to New Jersey, which is right there,” New York Governor Andrew Cuomo said.

The six-month performance of the Australian Cannabis Index also continued to lose momentum over the seven days, eventually falling to just-1.04%, while Australia’s All Ordinaries and the S&P 500 maintained an above par outlook.

creso pharma asx
Australian Cannabis Index – source The Green Fund

Meanwhile, the Australian pharmaceutical producer, Creso Pharma (ASX:CPH), closed out the week with a bang, after news of the company’s $18 million placement caused its stock price to jump to 0.24 a share.

Creso’s initial goal for the capital raise was just $10 million, however after seeing significant demand — while also drawing the attention of high-profile investors such as influential billionaire John Hancock and L1 Capital — the placement was subsequently upsized.

As a result, the company is now well-funded to proceed with a number of its near-term expansion initiatives, which will include the “acquisition of Halucenex and undertaking clinical trials.”

“Importantly, the acquisition provides the company with access to another lucrative vertical and potential revenue stream. We will also be ramping up our nutraceutical division and preparing for the anticipated legalisation of cannabis in the US through our Canadian operations,” Creso Pharma non-executive chairman Adam Blumenthal said.

The Green Fund’s Australian Cannabis Index allows investors to benchmark top players in the Aussie cannabis space against the S&P500, the AORD, and HMMJ, giving them an overview of the health of the industry Down Under.

 

The Green Fund’s Australian Cannabis Index allows investors to benchmark top players in the Aussie cannabis space against the S&P500, the AORD, and HMMJ, giving them an overview of the health of the industry Down Under.