MSO Strength Drives American Cannabis Operator Index 16% Higher in… – New Cannabis Ventures

Adding to a 29% gain in Q2 followed by a 27% advance in July, the American Cannabis Operator Index continued to recover from its Q1 decline, increasing 16.2% to 40.12:

The index, which launched at the end of October 2018 with a value of 100, reached a closing high of 124.16 a week later before declining to 70.64 in late December 2018. It then rallied as high as 119.53 in early April 2019 before selling off over the balance of the year, ending 2019 at 43.27. The index has now dropped 7.3% in 2020. After posting an all-time closing low on March 18th at 14.50, the index has now bounced by 176.7%:

During August, the index included 17 companies, including 14 multi-state operators (MSOs) and 3 focused solely on CBD extracted from industrial hemp. 12 companies posted double-digit percentage gains, with four gaining more than 35%. Strength across the board for MSOs drove the strong performance, though two managed small losses, while all 3 CBD operators declined:

The four best performing stocks included TerrAscend (CSE: TER) (OTC: TRSSF), AYR Strategies (CSE: AYR.A) (OTC: AYRSF), Trulieve (CSE: TRUL) (OTC: TCNNF) and Vireo Health (CSE: VREO) (OTC: VREOF). TerrAscend, one of the strongest performers in July and now up 121% in 2020, pre-announced strong revenue at its Investor Day early in the month and then beat expectations for adjusted EBITDA when it reported later in the month. The company provided full-year guidance for sales of at least C$192 million and adjusted EBITDA of at least C$45 million. AYR Strategies also reported its Q2, which was burdened by temporary closures in both Massachusetts and Nevada. Still, the company was able to report continued profitability. What drove the stock, though, was likely the announcement of the $57 million pending acquisition of CannTech, which will get them into their

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