The vape crisis in America is currently hurting cannabis businesses. The Centers for Disease Control and Prevention launched a multi-state investigation into a mysterious wave of lung disease in the United States. Shares for Canada’s Canopy Growth Corp. (CGC -3.01%), the largest cannabis company by market value, since August 1, 29% have descended and concerns grow about cannabis sales in Canada.
The vaping crisis in America is currently hurting investors in cannabis businesses.
The Center for Disease Control and Prevention launched a multi-state investigation into a mysterious wave of lung disease in the United States.
Several other factors influenced cannabis shares, including concerns about supply and weaker than expected sales in Canada.
Cannabis businesses see a decrease in shares amidst the vaping crisis in the United States
Shares for Canada’s Canopy Growth Corp. (CGC -3.01%), the largest cannabis company by market value, since August 1, 29% has descended.
This happened when the Centers for Disease Control and Prevention launched a multi-state investigation into a mysterious wave of lung disease in the United States.
The CDC has since then associated the diseases with evaporation products using THC. THC is the psychoactive ingredient of cannabis.
Rival companies Aurora Cannabis Inc. (ACB -6.59%), Cronos Group Inc. (CRON -1.61%) and Tilray Inc. (TLRY 0.83%) also experienced a decrease in this period.
The ETFMG Alternative Harvest exchange-traded fund (MJ), decreased by 25% since August 1st.
Several factors influence cannabis shares. This includes concerns about supply and weaker than expected sales in Canada.
Vaping issues causing problems and concerns for cannabis sales
In recent weeks the sector has been increasingly concerned about the risks of vaping.
There are more than 1,000 confirmed and probable cases of vaporizer-related lung disease in the United States. The CDC also reported 19 deaths.
These reports of a vaping crisis have been hurting several cannabis businesses. This is because customers are switching to products like pre-rolled joints.
“Pre-rolled joints are not as profitable to sell in comparison to vaporizers and oils,” said Rommel Dionisio, an analyst who covers cannabis companies for Compass Point Research & Trading LLC.
“The health scare lowered expectations for vape products in Canada that will be legalized later this year,” he added.
“There is a lot of concern. Given the health problems in the US, consumers might not be eager to buy vape products, considering all diseases and fatalities,” Dionisio said.
Americans accept cannabis but the stigma still exists
Despite the vaping crisis, more Americans are accepting the use of medical cannabis since more states in the US are legalizing medical and recreational use.
2018 polls show that 60% of Americans accept that cannabis is legal and find it morally acceptable that the plant is used.
However, this public acceptance does not extend to cannabis use in young parents, according to Business Insider.
Some women said that they were convicted of using cannabis as a parent. They believe that cannabis stigma comes from misconceptions and stereotypes about the use of the plant as a medicine.
(Featured Image By Rubén Bagüés)
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