Cannabis stocks bounce back—somewhat—from previous week’s selloff

Investors in most big, publicly traded weed companies fared reasonably well over the past five days of trading.

cannabis stocks share prices

Canopy Growth Corporation announced that it will open 10 new Tokyo Smoke and Tweed stores in Calgary. Photo by Tokyo Smoke

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Over the past five days, investors in weed companies finally managed to enjoy rays of sunshine. That’s because several cannabis stocks recovered somewhat from a pasting they endured in the previous week.

While some big players put public-relations operations on hold, announcements still bubbled forth. For example, on August 28, Canopy Growth Corporation declared that it will open 10 new stores in Alberta under the Tweed and Tokyo Smoke banners. Seven of those outlets are in Calgary, with the remaining three in Edmonton, Lethbridge, and Spruce Grove.

“We’ve seen the value brick-and-mortar retail brings to our consumers—welcoming new guests to learn about cannabis and building relationships in new communities—and we’re excited to share our knowledge and industry leadership across the region,” Canopy Growth’s general manager for Canada, Grant Canton, said in a company news release.

This retail expansion may have contributed to Canopy Growth’s share price rising 3.9 percent on the week to close at $22.12 in Toronto. That pushed the Smith Falls–based company’s market value back over the $8-billion threshold.

Other cannabis stocks fared even better.

The second-most valuable public weed company is Curaleaf Holdings, which is based in Wakefield, Massachusetts. This week, it announced the openings of its 89th and 90th dispensaries. They’re in the Florida communities of Clearwater and South Tampa.

It’s worth noting that Curaleaf’s shares shot up 7.6 percent over five days, closing at $11.30 on the Canadian Securities Exchange. It’s now worth $4.97 billion.

Cannabis stocks share share price
Aurora Cannabis employees have reason to smile—the company’s share price rose five percent. Photo by Aurora Cannabis

Other cannabis stocks go up

Another winner this week in the world of cannabis stocks was Toronto-based Cronos Group. Its shares rose 5.7 percent over five days of trading to close at $7.40 in Toronto. Its market capitalization stands at $2.59 billion.

Investors in a fourth billion-dollar weed company, Edmonton-based Aurora Cannabis, also enjoyed a solid week. Its share price increased five percent to reach $12.87 in Toronto. That boosted its market cap to $1.45 billion.

Shares of a slightly more valuable Canadian pot company, Leamington-based Aphria Inc., climbed 3.9 percent this week to reach $6.14 in Toronto. As a result, investors now peg its value at $1.77 billion.

Not everyone with cannabis stocks, however, could look upon the past five days with glee. Share prices can be finicky.

Ottawa-based Hexo Corp., for example, flatlined over five days. Its shares opened on Monday at $0.94 in Toronto. After a few ups and downs, the stock closed at the same price on Friday (August 28). Hexo is worth $435.8 million.

And Nanaimo-based Tilray’s shares closed lower on the week, down one percent. And that was despite a 2.33 percent rise on Friday. Tilray’s shares now trade at US$6.59 on NASDAQ, leaving it with a market value of US$838.1 million.

Sen. Kamala Harris cosponsored the MORE Act to legalize weed, which, if passed, could create more opportunities for investors in cannabis shares. Photo by Kamala Harris

U.S. vote looms on legalizing cannabis

Even though this was a relatively quiet, albeit positive week for cannabis stocks, there could be much bigger news to come. That’s because in September, the U.S. House of Representatives is expected to vote on legalizing cannabis.

The Marijuana Opportunity Reinvestment and Expungement Act, a.k.a. the MORE Act, would remove cannabis from the Controlled Substances Act. In addition, this historic legislation would wipe out some criminal records if it becomes law.

The MORE Act was cosponsored in 2019 by a leading Democratic Party congressman, Jerry Nadler, and Sen. Kamala Harris, now the Democratic Party’s vice presidential candidate.

If Republicans vote against it, this could make cannabis a significant issue in the upcoming November 3 elections to Congress across the United States.

And it just might bring a few more investors in cannabis stocks out to vote.

Charlie Smith

I'm the editor of the Georgia Straight newspaper in Vancouver, as well as a CannCentral contributor.

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