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     C A N N A B I S   S T O C K   I N D E X     
Index Performance for the Week Ended December 9, 2016
The Viridian Cannabis Stock Index fell 4.9% for the week ended December 9, 2016. Trading volume in the underlying stocks within the Index has normalized since the week of the U.S. elections and this week rebounded slightly from its post-election low last week. 

For the week, only two of the twelve Index sectors showed positive gains. The Consumption Devices and Software/Media sectors realized modest gains of 7.2% and 5.2%, respectively, outperforming most of the major market indices.

T
he "Touching the Plant" segment (down 5.8%) continues to exhibit greater volatility than the Ancillary Products & Services segment (down 3.1%) as investors have become increasingly willing to invest in companies more directly tied to the roll out of new, legal state markets.
Additionally, the significant run up in stock prices and valuations in the "Touching the Plant" segment surrounding the U.S. elections and the rumors that Canada is likely to roll out a recreational market next year have led to some selling off as investors look to lock in gains.
Index Performance Year-to-Date (YTD) as of December 9, 2016


The Viridian Cannabis Stock Index has risen 175.3% year-to-date as of December 9, 2016. The Index traded mostly flat through the first half of 2016 but rose 30.8% in the third quarter and an additional 108.9% following the end of the third quarter.

Volatility and volume in the Index continue to normalize as anticipatory investor excitement surrounding the November elections somewhat subsides. Going forward into 2017, we anticipate volume and volatility to remain higher than they were in the first half of this year but lower than they were going into the elections.


We attribute the rise in the Index, specifically following the end of the first half, to the anticipation of the new cannabis markets that were expected to come online following the elections this November. Between the end of the third quarter (September 30) and the close of trading on the day of the elections (November 8), our Index returned 133.5%. Following the elections, our Index saw a natural correction following the dramatic run-up of stock prices and greater market uncertainty following Donald Trump's unexpected victory in the U.S. presidential race. This week, we saw what could be the beginning of another slight correction as profit-sharing and lofty valuations somewhat dampen momentum in cannabis stocks.

Seven of the twelve sectors in the Index have shown positive gains YTD. During the week ended December 9, 2016, the Ancillary Products & Services and "Touching the Plant" segments both fell as a broad sell-off in cannabis stocks resulted in decreases in all but two sectors in the Index. In the two months prior to the U.S. elections, these two segments were roughly tracking one another as anticipation of the elections created a "rising tide lifts all boats" scenario. However, following the elections, the "Touching the Plant" segment (up 267.5% YTD) has markedly outperformed the Ancillary Products & Services segment (up 79.5% YTD) as investments more directly tied to new states establishing legal cannabis markets have garnered increased interest. 

The best performing sectors YTD have been Biotech/Pharma (up 413.3%), Consulting Services (up 375.6%), and Cultivation & Retail (up 290.7%).

The worst performing sectors have been Real Estate (down 75.7%), Infused Products & Extracts (down 33.3%), and Software/Media (down 30.2%).

The performance of the Viridian Cannabis Stock Index, as a whole and by sector, as well as in comparison to several major market indices, is detailed in the table below:
 
Viridian Cannabis Stock Index - Performance YTD
 

To learn more about the Viridian CANNABIS STOCK INDEX, contact:
 

Harrison Phillips
Viridian Capital Advisors, LLC
(212) 485-0284
hphillips@viridianca.com

 

Viridian Capital Advisors and its affiliates, as well as their respective partners, directors, shareholders, and employees may have a position in the securities mentioned herein and may make purchases and/or sales from time to time. Viridian Capital Advisors, may act, or may have acted in the past, as a financial advisor, fiscal agent or underwriter for certain of the companies mentioned herein and may receive, or may have received, a remuneration for their services from those companies.

About the Viridian CANNABIS STOCK INDEX
The Viridian Cannabis Stock Index tracks the performance of approximately 50 publicly traded cannabis companies that meet certain basic characteristics in regard to market capitalization, trading volume, and compliance with SEC filing requirements. Stock performance is categorized into 12 different product/technology sectors that comprise the core business segments within the legal cannabis industry. These sectors are further differentiated into those that "Touch the Plant" and those that are providers of ancillary products and services.

The above information, whether in part or in its entirety, neither constitutes an offer nor makes any recommendation to buy or sell any securities.


About Viridian Capital Advisors, LLC
Viridian Capital Advisors (www.viridianca.com) is a financial and strategic advisory firm dedicated to the cannabis market. We provide market intelligence, investment banking, investor relations, and corporate development services to emerging growth companies and qualified investors in the cannabis sector. Our banking practice, through broker-dealer Pickwick Capital Partners, provides capital and M&A to fund the growth of our clients, while our advisory practice helps to position and build their businesses. Our team’s decades of high level operating and transactional experience on Wall Street in a variety of emerging sectors, allows Viridian to provide comprehensive strategic and financial solutions that assist cannabis enterprises in realizing their full potential.

Copyright © 2016 Viridian Capital Advisors, LLC, All rights reserved.

Our mailing address is:

Viridian Capital Advisors, LLC
5 Bryant Park
1065 6th Avenue
10th Floor
New York, NY 10018

 

Broker-Dealer Services Provided Through Pickwick Capital Partners, LLC, A Member of FINRA and SIPC
 

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