The 5 Stocks Added To The U.S. Marijuana Index

The U.S. Marijuana Index from MJIC has risen 46% over the past year. (Photo by Shutterstock)

MJIC Inc. has added five new companies to the U.S. Marijuana Index as a result of its quarterly rebalancing. In order for a company to be in the index, they have to have a weighted average minimum market capitalization of $30 million, daily trading volume of $600,000 and a share price that is at least 10 cents. Companies with over $5 million in revenue per year are exempt from these requirements.

The United States Marijuana Index has jumped from a level of 48.39 a year ago to the current level of 70.83, an increase of 46%. “The first quarter of 2017 saw the cannabis stock market settle from the previous fall’s elections, with average daily volatility and volume for the constituents on the North American Marijuana Index decreasing 67% compared to the fourth quarter of 2016,” said Dan Nicholls, Vice President. “Overall, the Canadian Marijuana Index increased 7% and the U.S. Marijuana Index decreased 1% in the first quarter.”

Here are the five companies added to the index in alphabetical order:

1) AmeriCann Inc. designs, builds and owns state of the art cultivation and processing facilities to grow medical marijuana. The company identifies, acquires and develops real estate specifically suited for cannabis operations. In addition to its real estate business, AmeriCann also provides venture capital to emerging cannabis businesses. It has a market of $75 million and is up almost 400% over the past year.

2) Cannabics Pharmaceuticals develops and licenses cannabinoid-based treatments and therapies. The company’s research division is based in Israel, where it is licensed for its work in both scientific and clinical research. The company specializes in the development of personalized anti-cancer and palliative treatments. Most recently the company announced results that indicated its cannabinoid compounds caused cancer cell death with no effects on healthy cells. The results pave the way for a possible antitumor treatment. The company has a market capitalization of $236 million and the stock has risen over 2,000% for the past year.

3) Marapharm Ventures, Inc. invests in medical and adult-use marijuana businesses and while its operations are based in British Columbia, the company has been very active in the states. Marapharm is currently focused on Nevada and Washington. Land has been purchased in North Las Vegas to build a production facility that will house three medical marijuana licenses. In Washington, the company is leasing a 30,000-square-foot facility and has plans for the California market. It has also purchased and developed a hemp oil product call Maragold. The company has not earned any revenues in any of the last eight quarters, but it has traded up over 400% in the Canadian market. It has only been listed in the U.S. for a short time.

4) mCig, Inc. or Medical Cannabis Innovations Group makes, markets and distributes electronic cigarettes and vaporizers. It also has a wholly owned subsidiary called Grow Contractors that was selected last month to build the largest indoor grow facility in Oregon. In the fourth quarter of fiscal year 2016, the company reported that its revenues increased 446% to $1.3 million. The company has a $76 million market capitalization and is up almost 400% for the past year, but in the past three months, the stock has fallen 22%.

5) Solis Tek Inc. imports and distributes digital lighting for indoor grow facilities. Its products are designed to achieve higher yields and maximize grows. The company’s technology also maximizes electrical efficiency, which is a big challenge for indoor growing facilities. It achieves much of its efficiency and lighting quality through technology. It has a $37 million market capitalization and recorded revenues of $8.5 million for the year ending 2016. The stock’s share price over the past year has ranged between 25 cents and $1.42 and lately traded at $1.02.

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