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Cannabis stocks in Canada recover after a whirlwind week; Canopy Growth up 8.6% on Friday

Cannabis stocks stabilized in Canada on Friday after doing significant drops and bumps this week on the back of a host of news in the country that is nearing recreational legalized marijuana in Oct.
Cannabis stocks in Canada recover after a whirlwind week; Canopy Growth up 8.6% on Friday
Cannabis stocks in Canada settled after a roller-coaster week on the back of funding and acquisition announcements

Canadian cannabis stocks had a roller-coaster week, this week with extreme highs and lows but ended generally on a positive note. 

The biggest news this week was the fact that Constellation Brands (NYSE:STZ) will spend C$5bln to boost its stake in Canopy Growth Corp (CSE:WEED), sending shares up 8.6% at C$44.18 on Friday. The company reported a quarterly C$90mln net loss on Tuesday.

READ: Canopy Growth reports quarterly earnings in-line with analyst expectations; net loss of C$90.9mln

For Canopy, Constellation Brands, the New York-based beverage company, announced it will spend about C$5bn (US$3.8bn) to boost its stake in Canopy Growth, in a bet that legalization will gain traction around the world. Constellation said that it would buy 104.5 million Canopy shares priced at C$48.60 each.

“This is rocket fuel,” said chief executive officer Bruce Linton, of Canopy in an earnings calls on Wednesday. “We’re going to be way more global.”

READ: Kaneh Bosom Biotechnology: experienced management, access to capital and a clear strategy paves the way for success for the cannabis company

Other significant players in the market, including Aurora Cannabis Inc. (TSE:ACB:CA) was up 4.0%, at C$6.50 on Friday. Aphria Inc. (TSE:APH:CA) was up 1.8%, at C$10.58.

Hiku Brands (CSE:HIKU) soared 9.9% at C$2.00.

The Horizons Marijuana Life Sciences Exchange Traded Fund, a group of marijuana stocks that trades on the Toronto Stock Exchange, rose 2.80%, to C$16.55.

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