Investors in Canadian weed shares are having a great start to the week as the cannabis sector continues to soar on the stock market.
Pot shares in Canadian companies Aurora Cannabis and Tilray surged Monday after BNN Bloomberg reported that Coca-Cola is in serious talks with Aurora to develop cannabis-infused beverages (Aurora has since denied these reports).
On Tuesday morning, the U.S. Drug Enforcement Administration announced a deal with a B.C.-based company, Tilray, for medical research — which could be the first export of a cannabis product from a Canadian company to the U.S.
Tilray will work with the University of California San Diego on a clinical trial to test whether the drug (cannabidiol and tetrahydrocannabinol, better known as CBD and THC) can effectively treat essential tremor, a common neurological disorder that causes uncontrollable shaking.
After the news broke, Tilray’s shares surged around 15 per cent Tuesday on the premarket trade. Aurora’s stocks were up 20 per cent Monday.
The uptick in weed shares seems to have skyrocketed since Aug. 1., according to a recent IHS Marketing report. Since this time, pot socks have gone up 30 per cent for U.S. and Canada stocks. By comparison, the S&P/TSX Composite Index has declined slightly over one per cent in the same period.
Those weed stocks currently have a market capitalization of US$48 billion, having increased by US$20 billion since the start of August. The combined market capitalization hit an all-time high of US$51 billion on Sept. 12, IHS Marketing reported.
Tilray seems to be riding the cannabis stock craze….
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