The American Cannabis Operator Index recorded a fall of 18% in value for cannabis companies in December, according to New Cannabis Ventures.
The Index tracks 17 companies as of December. Five of the companies are solely CBD companies, which in general performed better than other companies on the Index, most likely because of the 2018 Farm Bill’s passage. The other 12 businesses are multi-state cannabis operators.
All companies tracked by the Index except for CBD company Elixinol Global lost money in December. United Cannabis stock declined so much that it will no longer be listed on the Index in January as trading volume fell below the Index’s minimum criteria. Operator Terra Tech had the worst month of those still listed after having been sued for fraud, though the company has contested the accusations.
The Index was launched on October 31, 2018. It contains a list, updated monthly, of the leading cannabis growers, processors, and retailers across the U.S.
To appear in the Index, stocks require a daily trading volume of at least $100,000 and must trade at a minimum price of $0.10 per share. Cannabis revenue must account for at least 50% of any listed companies’ revenue.
A decline in the Index’s value as a whole means that many cannabis producers in the U.S. aren’t making money.
The Index will be updated in January to remove United Cannabis’ listing and to add 1933 Industries and Green Growth Brands, which will bring the number of listed companies up to 18.