Cannabis Stocks Hit Amidst Vaping Crisis
Vaping, which is one of the fastest-growing segments of the legal marijuana industry, is taking a hit from health concerns and so is the stock of companies selling THC.
According to an updated number by the CDC on October 1, so far there have been over 1,000 confirmed and probable cases of lung injury linked to e-cigarettes, and at least 18 deaths across 15 states.
The CDC’s latest reports, published on September 27, from the investigation into vaping-related lung injury have found that products that combined nicotine and THC, or tetrahydrocannabinol, were used by over three-quarters of the people affected by the lung disease outbreak.
Although the findings from the investigation are not conclusive, health officials are calling on a ban on e-cigarettes until they learn more about the causes.
The CDC further urges young people to avoid using vaping products. They believe that the THC content in e-cigarettes could impair the development of the brain, particularly the region that makes the decisions and controls impulses.
Combined with the usual concerns over cannabis use, the latest health scare has caused shares of Canopy Growth Corp., the biggest cannabis company in terms of market value, to plummet by 29% from August 1. Shares of other cannabis companies have also gone down in the same period. According to the Wall Street Journal, shares of Aurora Cannabis and those of rival company Cronos have dropped by 29%, while Tilray stock has declined by 40%.
With state regulators across several US states calling for a ban on the sale of flavored vaping products, most of which contain THC, estimates are that cannabis company’s stock will continue to fall.