U.S. equities opened with weak consumer price data, which provided some excuses to sell. Oil was also down on the day. The S&P 500 closed down at 2,011.
Cannabis stocks started the day off with an interesting press release out of Surna (OTCQB: SRNA) announcing that its CEO Tom Bollich will be stepping down. He was mostly noted as being a startup CEO based on his prior experience working with Zynga. However, it seems the company is ready to up its game for its next phase of projects with someone who will see it through. It will be interesting to see how these management shifts occur in these relatively young companies as they grow. Does this mean the industry is transitioning from startups to more mature companies?
Daily Positive: We like to see substantive press releases that share actual company information.
Daily Negative: Attorney General confirmation is looming near for Loretta Lynch as she made it through the Judiciary Committee. This could be a difficult move for the cannabis industry, as Lynch has said she does not support legalization.
Today feels like a day when things are happening. We are watching different developments, both in terms of politics and in the realm of business. On the private side, we are observing some really exciting updates. In the public markets, we are witnessing indications of a maturing industry. The announcement from Surna today being just one example, it is a good chance to see how organizations are going to prepare for the next stages of their business.
We are also on the precipice of watching some companies access the public markets via DPO/IPO, which is unprecedented in the cannabis industry. Open your eyes, for you are witnessing history in the making. As investors, we will be able to tell tales of what it was like to be at the beginning of something. At times, it hasn’t been easy, or pretty, but that will hopefully change.
Anything worth doing is likely very challenging, but the reward is often that much greater. As Theodore Roosevelt said: “Nothing in the world is worth having or worth doing unless it means effort, pain, difficulty … I have never in my life envied a human being who led an easy life. I have envied a great many people who led difficult lives and led them well.” Those who have hung in there with the cannabis industry, especially the public markets, are tough and we hope to see this rewarded in kind.