Company news can either send a stock higher or lower. Even the most positive of announcements can make a stock head into the red, particularly penny stocks. Something like this is happening today. On Wednesday, CROP Infrastructure disclosed that one of the CROP dispensary applications moved onto the next round of the application review process. And yet, the stock has dropped nearly 8% today.
What gives?
CROP Dispensary Applications: Stage 3 Achieved
Yes, penny stocks are volatile. And yes, cannabis stocks are trading in the red zone Thursday, such as Nutritional High (CSE:EAT), which is down 4.55%, but CROP ‘s trading activity today is still a little surprising.
It boils down to the company’s update on its San Bernardino dispensary application. According to the North American enterprise, the San Bernardino CROP dispensary application has advanced onto the next round, achieving level three status. There are four stages in the entire application review process.
But there’s more. CROP Infrastructure also informed the masses that its cannabis product facility—Emerald Triangle—has an additional two greenhouses, both awaiting test results. If the results are positive, CROP Infrastructure can commence selling cannabis products. Hence the need for the CROP San Bernardino dispensary application to come through.
Even though this is all good news—CEO Michael Yorke said Crop’s harvest “looks phenomenal”—the market doesn’t appear to agree. Either that or the cannabis market, in general, is struggling today, and the CROP share price dropping isn’t because of CROP shareholders.
CROP (CSE:CROP) Stock: September 6th, 2018
According to Yahoo Finance, as of 2:14 p.m. EDT, CROP is down 7.84%.
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The Takeaway
What do you think about one of the CROP dispensary applications reaching stage 3 of the application process? Do you think this kind of news should have allowed the CROP share price to increase?
Let us know in the comments below!
Featured Image: Twitter
