Marijuana Short Sellers Get Smoked In February

Stock investors gambling against the cannabis play lost big in February. 

Short sellers of marijuana stocks, a.k.a. investors rolling the dice against pot stocks, lost more than $200 million during one day of trading in February, according to Business Insider.

“On Tuesday, several major marijuana producers including Cronos Group, Aphria, and Aurora Cannabis gained more than 6%.” And per data gathered by the financial-analytics firm S3 Partners, “that rally pummeled marijuana short-sellers with $213 million of mark-to-market losses.”

Per the firm’s dissected analytics, those betting against cannabis stocks have primarily focused on 10 marijuana stocks that span 150 cannabis-related securities. 

In February, the “total shares” of shorted marijuana stocks decline by 4.2 million shares for the following top-10 cannabis stocks. 

And according to S3 Partners, that pull-back in shorts is an indication “those with less conviction cut some of their exposure.”

In other words, it would appear that investors are growing increasingly more confident as a direct result of expanding legalization in the U.S. and ongoing efforts in Canada to remove obstacles the within cannabis industry. 

TransCanna is poised to grow

Listed on the Canadian Securities Exchange(CSE), TransCanna Holdings Inc., completed its IPO on Jan. 8, 2019 selling 4.4 million units at $0.50 cents each. As of Friday, March 1, 2019, TransCanna (TCAN) closed at $2.65 per unit. That represents a 430 percent uptick in value in less than two months.

For those that don’t know, TransCanna provides branding, transportation and distribution services through its wholly owned subsidiaries in California. 

On Feb. 22, the company announced the execution of an LOI to lease a new 15,000 square foot facility currently under construction with a completion date of April 30th in Adelanto, CA. This multi‐faceted facility is intended to be one of four strategically located satellite facilities located throughout California.  

"The Adelanto facility will serve the densely populated southern California marketplace with industrial scale production, distribution and transportation capabilities," according to the press release.