While there have been a lot of big declines on the market on Thursday, one of the biggest has been the Cann Group Ltd (ASX: CAN) share price.
The medicinal cannabis company's shares plunged as much as 16.5% lower at one stage today.
At the time of writing Cann Group's shares are down 10.5% to $2.26.
Why are Cann Group's shares being smoked?
Shareholders of Cann Group will be especially disappointed as this morning the company announced the signing of a three-year agreement with CSIRO to extend its research and development collaboration.
According to the release, the company will work with multiple CSIRO business units under the new umbrella agreement. This will see technology development activities undertaken for use in the commercial manufacture and sale of medicinal cannabis products. Importantly, Cann Group will own all intellectual property that results from the collaboration.
This would ordinarily have sent its share price climbing higher, but not today. Today investors are exiting the cannabis industry en masse as they move out of risky assets and into safe havens.
It isn't just Cann Group that is on the decline today. Almost all cannabis companies have sunk lower. Here is the state of play elsewhere in the industry today:
The Althea Group Holdings Ltd (ASX: AGH) share price has tumbled 16% lower to 37.5 cents.
The Auscann Group Holdings Ltd (ASX: AC8) share price is down 8% to 69 cents.
The Creso Pharma Ltd (ASX: CPH) share price has fallen 5.3% to 44.5 cents.
The Hydroponics Company Ltd (ASX: THC) share price has dropped almost 7% to 49 cents.
Should you buy the dip?
I wouldn't be in a rush to pick up shares in these cannabis companies just yet. As they are some of the most high risk shares on the market, I suspect these declines could continue for some time unless the market recovers strongly in the near future.
