The Creso Pharma Ltd (ASX: CPH) share price is on course to end its remarkable run on Thursday with a sizeable decline.
The cannabis company’s shares were down as much as 33% at one stage to 20 cents this afternoon.
The Creso Pharma share price has since recovered slightly but remains down 27% to 22 cents at the time of writing.
What is happening with the Creso Pharma share price?
It appears as though some investors have decided to take a bit of profit off the table after a stunning gain in December.
Prior to today, the Creso Pharma share price was up an incredible 500% month to date.
Investors have been scrambling to buy its shares on the belief that a couple of recent developments will have a material impact on its future performance.
These developments were the UN announcing a landmark decision to reclassify cannabis as a less dangerous drug and the US House of Representatives voting to decriminalise cannabis.
Management commented that it believes these decisions have the potential to create significant growth opportunities in the industry.
Market expansion.
In addition to this, investors responded positively to an announcement on Wednesday which revealed that Creso Pharma has entered the largest recreational cannabis market in Canada. This was achieved following the receipt of orders worth ~C$230,000 from the Province of Ontario.
It also noted a maiden purchase order from the Yukon Liquor Corporation, which is another key market for recreational cannabis. According to the release, the Ontario and Yukon markets have recorded combined sales for recreational cannabis of over C$300 million year to date.
Management commented: “We are proud to announce that Mernova has been chosen to become part of a very select group of licensed producers with cannabis products for sale in the Yukon. This is a major achievement for us, and we expect growth to continue across Canada and, with our pending entry into Ontario, Canada’s largest recreational market, we expect rapid growth to continue.”
Though, with a market capitalisation heading beyond $300 million on Wednesday, time will tell if it delivers on the enormous growth being factored into its share price.
This Tiny ASX Stock Could Be the Next Afterpay
One little-known Australian IPO has doubled in value since January, and renowned Australian Moonshot stock picker Anirban Mahanti sees a potential millionaire-maker in waiting…
Because ‘Doc’ Mahanti believes this fast-growing company has all the hallmarks of genuine Moonshot potential, forget ‘buy now pay later’, this stock could be the next hot stock on the ASX.
Doc and his team have published a detailed report on this tiny ASX stock. Find out how you can access what could be the NEXT Afterpay today!
See how you can find out the name of this stock
Returns as of 6th October 2020
More reading
- Why the Creso Pharma (ASX:CPH) share price is rocketing 96% higher today
- Why Afterpay, Creso Pharma, Healius, & Resonance Health shares are storming higher
- Why Creso Pharma and these ASX shares just hit 52-week highs or better
- Zip and Creso Pharma were among the most traded shares on the ASX last week
- Why the Creso (ASX:CPH) share price is rocketing 30% today
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post Why the Creso Pharma (ASX:CPH) share price crashed 33% lower today appeared first on The Motley Fool Australia.
from The Motley Fool Australia https://ift.tt/2K7irUc
Leave a Reply