Pot stocks on pace for second-worst day ever as Tilray tumbles

Pot stocks have recently gained popularity after Tilray CEO Brendan Kennedy told CNBC’s Jim Cramer in September in which pharmaceutical companies should partner with cannabis producers as a possible hedge against the space.

The MJ ETF, however, can be still up more than 24 percent over the past three months despite Monday’s losses. This kind of can be also up more than 9 percent inside past year.

Traders pointed to numerous reasons for the recent sell-off in cannabis. Several large conferences inside past few weeks, as well as legalization in Canada on Oct. 17, generated excitement inside space in addition to bid up prices, one Canopy Growth shareholder told CNBC. Monday’s move may reflect a degree of profit taking, investors said.

Investors may also be raising cash before the the launch of three big U.S.-based cannabis companies on Canadian stock exchanges within the next month, one trader said.

Acreage Holdings, one of the United States’ largest vertically integrated multi-state cannabis operators, announced earlier This kind of year in which This kind of had closed Series E funding round, securing $119 million of capital. The company can be supposed to launch on the Canadian Stock Exchange in early November.

WATCH: Tilray CEO on third country to legalize pot next year

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