Australian policy has a very strong tendency to follow US policy. A monumental shift in the decriminalisation/rescheduling of Cannabis in the US will very likely have a flow on effect here. That is the widely supported cause for the increasing internet in US Cann. The difference is that us holders are on a trend that is yet to be fully acknowledged by Australian investors (In most part due to the crash and burn of 2021 when no Aus company was operating sustainably or effectively).
With ECS targeting the US as a major export now and in the future, it’s not an unfair assumption that Australia is in part influenced by US in terms of sales and policy. Additionally, with ECS having its current global network, money flowing into these ETFs may ultimately result in US investment in Australian assets. With ECS being the only profitable publicly traded Aus Cann stock, the probability of them being a target for buying is only increasing. E.g. Aurora Cannabis fully acquiring MedReleaf for $50mil no more than 2 months ago. To entirely discount any correlation would be remiss.
When there’s low liquidity it’s even more so common for trends to not be as closely aligned, but overlaying ECS and MSOS/YOLO over a 3 year period, they align with significant correlation.
ECS Price at posting:
2.4¢ Sentiment: Buy Disclosure: Held
