The saying goes: red days are made for shopping, and in the case of cannabis stocks, it might be something to consider.
Many North American cannabis stocks sank on Tuesday, after a rip-roaring Monday.
It's hard to pinpoint exactly why the majority of stocks across Canadian and the US dropped Tuesday, but PepsiCo Inc (NASDAQ:PEP) probably moved things along after it told investors it has no plans to invest in cannabis, sending markets into volatile territory.
Shares of Namaste Technologies Inc (CVE:N, OTCMKTS:NXTTF) continued to slide Tuesday, in addition to a host of others: Tilray Inc (NASDAQ:TLRY), The Green Organic Dutchman Holdings Ltd (TSE:TGOD, OTCMKTS:TGODF).
READ: Tilray’s price target ditched by Roth Capital due to ‘unprecedented volatility’
Shares of Namaste were down 16.9% at US$1.50 in New York and down 16.8% at C$1.93 in Toronto. Last week, the company it will enter into a $45 million bought deal equity financing with Eight Capital. Namaste operates the largest global online marketplace for cannabis consumption devices, with more than 1.5 million customers globally.
Shares of Tilray were down 16.3% at US$138.17 and shares of the company have been swinging wildly in recent days
Yesterday, the company released news that the company's subsidiary High Park Farms received a sales license from Health Canada under the Access to Cannabis for Medical Purposes Regulations (ACMPR).
The Green Organic Dutchman saw its shares drop Tuesday, down 10.7% at US$4.68 in New York and down 11.6% and C$5.97 in Toronto.
The company announced a C$75 million bought deal Monday.
READ: Short-seller Andrew Left’s Citron Research sets sights on India Globalization Capital
On the upside, shares of India Globalization (NYSE:IGC) continued to rocket upwards 46.3% at US$13.20 after last weeks' news that it plans to enter the CBD business. The cannabis stock has jumped more than 450% over the past five sessions.
The infrastructure and cannabis pharmaceutical company announced it had entered the cannabidiol-infused energy drink business with an agreement to distribute “Nitro G” drink.
Today, short-seller Andrew Left of Citron Research said IGC is “the poster child of a cannabis bubble” via Twitter.
The North American Marijuana Index, comprised of the leading cannabis stocks in the U.S. and Canada, was on the decline down 19.68% at US$319.16.