7 Canadian Licensed Producers That Have Rallied Post Safe Banking Act Being Omitted From NDAA

The Canadian cannabis industry has been one of the greatest beneficiaries of the US SAFE Banking Act not being included in the National Defense Authorization Act (NDAA) and we have been surprised by the recent trend. 

After the bill was not included in the NDAA, Canadian Licensed Producers (LPs) have been coming off its lows from early December and momentum has been trending to the upside (as measured by the relative strength index or RSI). 

Although we consider the recent trend to be transitory, we cannot ignore the recent price swings and want to highlight 7 Canadian LPs that have been trading higher after the SAFE Banking Act was not included in the NDAA.

Price Performance (based on CAD prices as of 12/8 market close)

1. OrganiGram Holdings Inc. (TSX: OGI) (Nasdaq: OGI) – has rallied more than 20% off its low on December 6th 
2. Aurora Cannabis Inc. (TSX: ACB) (Nasdaq: ACB) – has rallied more than 16% off its low on December 6th 
3. Cronos Group Inc. (TSX: CRON) (Nasdaq: CRON) – has rallied more than 14% off its low on December 6th 
4. Canopy Growth Corporation (TSX: WEED) (Nasdaq: CGC) – has rallied more than 13% off its low on December 6th 
5. Village Farms International, Inc. (VFF) (Nasdaq: VFF) – has rallied more than 11% off its low on December 3rd
6. Auxly Cannabis Group Inc. (TSX: XLY) (OTC: CBWTF) – has rallied 7.5% off its low on December 7th 
7. Entourage Health Corp. (TSX: Venture: ENTG) (OTC: ETRGF) – has rallied 7% off its low on December 8th 

Although the exclusion of the SAFE Banking Act from the NDAA was disheartening, we remain bullish on the US cannabis industry and believe the recent pullback has created a great opportunity. Several leading US multi-state operators (MSOs) have reported incremental growth on a year-over-year basis and we are bullish on how the domestic cannabis industry has advanced so far this year, 

We expect 2022 to be a banner year for the US cannabis industry and our readers should be aware of this. If you are interested in learning more about the recent trend with US and Canadian cannabis stocks, please send an email to support@technical420.com with the subject “North American Cannabis Stock Trends” to be added to our distribution list. 

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Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.

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