2019 was a difficult year for cannabis stocks, and people were hopeful that 2020 would be more promising, but with coronavirus on the rise, the future of pot stocks may not be so bright.

Coronavirus, a respiratory disease that can be deadly, and is normally seen in mammals until recent months, has been spreading across the globe rapidly. It originated in Wuhan, China but today there are over 70,000 confirmed cases worldwide and over 1,000 people have died.

Fearing the coronavirus’s spread, China has taken measures to prevent a pandemic. Some of these measures include shutting down businesses and/or quarantining large swaths of people. This could end up serving a major blow to the Chinese economy in the short term and possibly in the long-run.

Cannabis companies can be directly impacted by the coronavirus. Direct sellers of cannabis can be adversely affected by the shortage of everything from lighting systems to HVAC systems from Chinese businesses. Cannabis-ancillary businesses can be adversely affected by the fact that Chinese manufacturing facilities that make the products to sell to cannabis companies may not be able to continue operations if work stoppages continue. Additionally, cannabis ancillary companies, such as KushCo, may get crushed by the spread of the coronavirus. KushCo makes most of its revenue by selling vaporizers, which it sources from China. KushCo is not the only company that sources its vaporizers from China, as Cronos does so as well, and could similarly feel the sting.

Amsterdam’s mayor is considering banning tourists from the renown cannabis coffee shops in attempts to resolve overtourism and increase the quality of life in the city’s red-light district. 

An August 2019 survey of tourists, commissioned by Mayor Femke Halsema, indicated that 57% of the respondents chose to visit Amsterdam to experience a cannabis cafe.

34% of the survey’s respondents stated they’d visit Amsterdam less frequently if they weren’t able to visit coffee shops, and 11% said they wouldn’t come at all.

Beginning in April 1, 2020, new measures will be implemented to regulate group tours of the area, preventing tour groups from passing the red light windows, touring past 10 p.m. and lingering in “places that are sensitive to pressure” — such as narrow bridges, or entryways.