Should I buy Cannex stock in 2025?

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At HelloSafe, our expert has been monitoring the performance of Cannex for more than three years. Every month, hundreds of thousands of Canadians rely on us to break down market trends and spotlight the best investment opportunities. Our analyses are intended for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, paid or compensated by Cannex.

What is Cannex?

How much is Cannex stock?

The price of Cannex stock is declining this week. As of today, shares are trading at $0.0029 USD, with no movement over the past 24 hours but showing a sharp 16% drop over the last seven days. Cannex’s current market capitalization sits at $3.31 million, with an average trading volume of 1.5 million shares over the past three months. The company does not report a P/E Ratio, as it remains unprofitable, and pays no dividends; the stock’s beta stands at 1.18. With high volatility and substantial recent losses, investors should be aware that Cannex stock carries elevated risk in the present Canadian market context.

Our full analysis on Cannex stock

After a thorough review of Cannex’s recently released financial data and a detailed assessment of the stock’s performance across the past three years, our advanced analysis—combining proprietary financial models, technical indicators, and extensive sectoral benchmarking—reveals a story of resilience, innovation, and potential inflection. As we parse the full weight of recent operational advances alongside industry shifts and competitors’ maneuvers, one compelling question emerges: why might Cannex stock once again become a strategic entry point into the North American cannabis sector in 2025?

Recent Performance and Market Context

The past year has been one of significant volatility for Cannex (4Front Ventures, CSE: FFNT), with its share price materially compressing, currently quoted at $0.0029—marking a 96.59% decline year over year and a market capitalization of just $3.3 million. While the 52-week price range highlights dramatic downside ($0.0015 low, $0.1540 high), this concurrent contraction across the sector has also created deep-value scenarios for select operators. Notably, the six-month return stands at -92.3%, with year-to-date performance at -70%—a stark illustration of broad market headwinds rather than operational insignificance.

Yet within this adverse context, several positive developments merit close investor attention:

• Illinois Expansion: Cannex’s significant commitment to its Matteson, Illinois cultivation campus positions the firm to address severe supply constraints in one of the U.S.’s most attractive state-legal markets. Targeting a 34,800 square foot footprint before mid-2025, Cannex may be uniquely poised to capture pent-up wholesale demand.
• Wholesale Growth Outperformance: Massachusetts operations delivered a striking 56% quarter-over-quarter surge in wholesale revenues, indicating adaptability and brand traction in maturing, competitive markets.
• Operational Improvement and Diversification: New product launches such as ‘Smoke Breaks’ mini pre-rolls and expanded SKUs reinforce Cannex’s innovation-centric approach, supporting both retail and wholesale channels.
• Governance and Capital Structure Optimization: Leadership changes, notably the removal of directors to eliminate conflicts with senior lenders and the engagement of Canaccord Genuity for capital structure advisement, suggest a proactive, shareholder-aligned stance.

On the macro level, the North American cannabis sector is expected to benefit from evolving regulatory signals, with possible U.S. federal rescheduling and continued state-level legalization trends buoying market optimism. This sector-wide inflection—coupled with operational leverage—renders Cannex’s current dislocation a potentially compelling opportunity for contrarian, well-informed capital.

Technical Analysis

A granular technical reading on Cannex stock supports the narrative of a market potentially at or near a significant inflection point:

• Relative Strength Index (RSI): At 37.36, the RSI signals an oversold condition. While not yet at extreme reversal levels (
• Moving Averages: The 20-, 50-, 100-, and 200-day moving averages all reside decisively above the current share price, confirming a persistent bearish trend but also revealing the scale of the price ‘compression spring’ at work. Should a reversal occur, the distance to key averages could amplify upside moves, echoing previous cannabis sector recoveries.
• MACD: With the MACD well below its signal line in negative territory, bearish momentum has dominated. However, as major new catalysts emerge, technical reversals tend to be most forceful after prolonged negative momentum.
• Support and Resistance: The principal support level stands at $0.0019, which has proven durable during recent volatility. Meanwhile, a close above $0.0035—recent high—and a secondary psychological threshold at $0.01 would be notable technical confirmation of a cyclical bottom and the potential dawn of a new uptrend.

Short- and medium-term momentum remains negative, but several oversold signals, stable support, and ongoing corporate developments hint that downside risks may be abating and the conditions are forming for a base-building phase or the early stages of a bullish reversal.

Fundamental Analysis

Despite obvious short-term financial pressures, the core fundamentals of Cannex reveal several strengths:

• Revenue Base and Market Share: For Q3 2024, revenue was $17.1 million, underscoring Cannex’s status as a material operator in its key markets, with expanding wholesale revenues and a rapid product development cycle fueling diversification.
• Valuation: The current price-to-sales (P/S) ratio stands at an ultra-low 0.03, and the enterprise value-to-revenue multiple is only 2.86. In relation to sector peers and historical transaction values, these metrics signify a discounted valuation that could catalyze renewed institutional interest as sector sentiment stabilizes.
• Innovation and Operational Expertise: Continued R&D and the ability to rapidly scale SKUs have enabled Cannex to sustain wholesale and retail relevance even amid tough market conditions. The vertically integrated model, especially in Illinois and Massachusetts, provides measurable operational leverage should pricing or demand inflect favorably.
• Brand Equity: The company’s ‘Mission’ dispensaries and recognized product lines lend stickiness and consumer loyalty—a significant intangible often undervalued during cyclical lows.

While profitability remains elusive—reflected in a negative P/E and ongoing adjusted EBITDA margin compression—the magnitude of the valuation discount is such that it discounts not only current challenges, but also a significant portion of the perceived risk. For value-oriented investors with a medium-term horizon, these metrics may signal a strong margin of safety compared to other public cannabis platforms.

Volume and Liquidity

Trading volume in Cannex stock remains notably robust for a micro-cap security, averaging 1.5 million shares daily over the past quarter. This sustained liquidity indicates continuing investor engagement and a readiness for dynamic repricing should positive news or broader market inflows materialize. With a sizable public float (312.6 million shares) out of nearly 914 million outstanding, liquidity risk is mitigated, and the share count allows for valuation enhancement without undue mechanical price distortion under moderate buying pressure.

Catalysts and Positive Outlook

There are multiple near- and medium-term upside catalysts that could underpin a favorable re-rating of Cannex shares:

• Illinois Cultivation Ramp: Completion and full-scale operation of the Matteson cultivation facility, on track for mid-2025, may serve as a major catalyst. This project is expected to yield over 3,000 pounds of cannabis biomass monthly, propelling revenue and providing a competitive edge in a market suffering from product shortages.
• Product Innovation Pipeline: A continuous stream of new SKUs, proprietary formulations, and the successful launch of brands such as ‘Smoke Breaks’ positions Cannex to address evolving consumer preferences and maintain topline momentum.
• Wholesale Revenue Acceleration: Particularly in Massachusetts, 56% quarter-over-quarter wholesale growth points to best-in-class execution and validates the company’s hybrid expansion and distribution strategy.
• Cost and Capital Structure Optimization: The active pursuit of financial restructuring—guided by top-tier advisors—signals the management’s intent to ensure solvency, unlock EBITDA potential, and restore investor confidence.
• Sectoral Tailwinds: Evolving legislative dynamics, continued state market expansions, and increased visibility of the legal cannabis sector as a durable consumer staple collectively represent significant sources of upside optionality.

Crucially, these catalysts are taking shape against a backdrop of notably reduced expectations and discounted market capitalization, meaning their impact could be disproportionately positive on share price and enterprise value.

Investment Strategies

Given the high volatility and deep-value positioning of Cannex, a range of investment strategies can be considered for different risk appetites and time horizons:

• Short-Term Positioning: For active traders, the stock’s proximity to durable support at $0.0019 presents a tactical opportunity for rebound trades, especially if technical indicators confirm an oversold bounce coinciding with operational updates.
• Medium-Term Outlook: Investors targeting a multi-quarter horizon may view current levels as an opportune entry, banking on the imminent expansion of the Matteson facility, new product launches, and evidence of progress on cost restructuring to catalyze multiple rerating events.
• Long-Term Conviction: For those with a contrarian, high-conviction approach, the discounted P/S ratio, operational leverage, and potential for broad sector sentiment recovery all point to substantial upside, should the company execute on its restructuring and achieve cashflow stabilization.

In all cases, the risk/reward profile is vastly superior at current valuations than at previous sector peaks, and the positioning now could provide a high beta play on the recovery of the U.S. cannabis sector.

Is It the Right Time to Buy Cannex?

Bringing together the technical, fundamental, and strategic analyses, several decisive strengths stand out:

• The company’s discounted valuation appears to price in a worst-case scenario while ignoring tangible operational progress.
• Structural expansion in Illinois, burgeoning wholesale growth in Massachusetts, and unrelenting product innovation mark Cannex as a sector operator with expandable competitive advantages.
• Increased volume liquidity and a favorable float offer flexibility for both retail and institutional investors.
• A proactive, restructuring-focused leadership with credible external advisors.
• Macroeconomic and regulatory climates that have the potential to dramatically reprice cannabis assets in 2025 and beyond.

In sum, while Cannex undeniably faces current financial headwinds, the potential for a powerful operational inflection and dramatic multiple expansion is palpable—especially if ongoing restructuring efforts and market catalysts reach fruition. For investors seeking compelling asymmetric opportunities in the Canadian and broader North American cannabis sector, Cannex stock at today’s depressed levels seems to represent an excellent opportunity for renewed attention and strategic positioning. The convergence of technical stabilization, asset-backed valuation, and sector-wide transformation may well signal that a new bullish phase for Cannex is on the horizon.

How to buy Cannex stock in Canada?

Buying Cannex (now 4Front Ventures: FFNT on the CSE, FFNTF on OTC Markets) shares online is both straightforward and secure when you use a regulated broker in Canada. Today, investors have two primary options: buying shares outright (“spot” or cash buying), or trading via Contracts for Difference (CFDs), which let you speculate on the price movement without owning the underlying stock. Both methods are accessible to Canadian retail investors and can be managed entirely online, often with just a few clicks. To help you get started, we provide a detailed broker comparison further down the page.

Spot buying

Cash purchase of Cannex (4Front Ventures) shares means you’re buying real stock, held securely in your brokerage account. In Canada, most online brokers charge a low, flat commission per order, typically between $5 and $10 CAD for Canadian exchanges (and sometimes slightly more for U.S. markets).

Example: Calculating a spot share purchase

For example, with 4Front Ventures currently trading at $0.0029 USD on the CSE (FFNT), let’s assume you have $1,000 CAD to invest and the current exchange rate is roughly 1 CAD = 0.73 USD. That gives you about $730 USD after conversion. Deducting a $5 brokerage fee, you would have around $725 USD to invest. At $0.0029 per share, you could purchase approximately 250,000 shares.

• ✔️ Gain scenario: If the share price rises by 10%, your shares would now be worth $1,100 CAD (the equivalent USD value rises as well).
• Result: That’s a $100 gross gain, or +10% on your investment.

Trading via CFD

CFD trading lets you speculate on the price movements of Cannex stock without actually owning the shares. With CFDs, you can use leverage, meaning you can control a larger position with a relatively small amount of capital. In Canada, typical CFD costs include the spread (the difference between buy and sell price) and overnight financing fees if you keep your position open beyond a trading day.

Example: Calculating a CFD trade

Suppose you open a CFD position on Cannex shares with a $1,000 CAD deposit and 5x leverage. This gives you market exposure of $5,000 CAD.

• ✔️ Gain scenario: If the stock rises by 8%, your position gains 8% × 5 = 40%.
• Result: That’s a $400 gain on your $1,000 investment (not including spreads and overnight fees).

Final advice

Before you invest in Cannex shares, it's vital to compare fees, trading platforms, and conditions offered by different brokers. Each broker will have varying costs, user interfaces, and available markets, which can impact your experience and returns. Your choice should be guided by your investment goals—whether you prefer direct share ownership or speculative, leveraged trading via CFDs. To make an informed decision, consult our comprehensive broker comparison further down this page.

Platforms

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4.9

Minimum Deposit

$50

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IFC Markets

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Our 7 tips for buying Cannex stock

The latest news about Cannex

4Front Ventures (formerly Cannex) expands cultivation operations in Illinois, enhancing supply in a key U.S.-Canada corridor. The company's aggressive ramp-up of its Matteson, Illinois cultivation and production facility—expected to reach 34,800 square feet by mid-January 2025—positions it to meet increasing demand in this pivotal market. Illinois' proximity to Canada and robust cross-border commerce make operational scale in the Midwest particularly relevant for Canadian investors and those monitoring cannabis supply-chain dynamics between the two countries.

Record wholesale revenue growth in Massachusetts underscores resilience and market adaptability, with implications for cross-border brand presence. 4Front Ventures reported a 56% quarter-over-quarter jump in wholesale revenue in Massachusetts for Q3 2024, breaking the $2 million quarterly milestone. Such expansion in a competitive, regulated Northeastern market signals strong product acceptance and scalability, offering a positive signal for Canadian stakeholders interested in tracking companies with growth momentum in jurisdictions analogous to several Canadian provinces.

Launch of new branded products such as ‘Smoke Breaks’ mini pre-rolls demonstrates strategic product innovation in regulated U.S. markets. The introduction of new SKUs and innovative products in both Illinois and Massachusetts reflects an ongoing commitment to portfolio development and differentiation. For Canadian investors, this is noteworthy, highlighting the potential for appealing, transferable products should regulatory convergence allow cross-border brand expansion or partnerships in the future.

The company's engagement of Canaccord Genuity for financial restructuring indicates proactive management and possible future stabilization. Enlisting a reputable Canadian-based investment bank to assist in optimizing capital structure demonstrates 4Front’s commitment to addressing financial challenges. This development may help restore investor confidence and is closely watched by Canadian analysts familiar with Canaccord’s track record in the cannabis sector, suggesting that local expertise is being leveraged to navigate current headwinds.

Despite short-term market weakness, 4Front Ventures’ oversold condition and operational strengths hint at potential recovery catalysts. The stock’s severe decline (over 96% in one year) and an RSI of 37.36 indicate the shares are in oversold territory. While this trend reflects significant financial risk, it can also set the stage for sharp recoveries if restructuring efforts succeed and operational execution remains strong—a dynamic of particular interest in the context of distressed asset opportunities evaluated by professional Canadian investors.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.