Cannabis stocks lifted on Thursday after two big names announced new moves in the sector.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada gained 1.4% at 126.7 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF decreased by 0.3% to C$10.31, while the OTCQX Cannabis Index was up 1.3% to 446.8 points.
Hip hop superstar Drake is teaming up with industry giant Canopy Growth Corp (TSE:WEED) (NYSE:CGC) in a new venture to sell recreational cannabis and accessories, the Toronto-born entertainer’s first moves in the legal pot sector.
The new venture, dubbed More Life Growth Co, is a 60:40 split between Drake and Canopy.
The news sent Canopy’s shares nearly 1.8% higher in early Thursday trading in Toronto, although prices eventually settled to trade flat by midday. In New York, Canopy’s stock was 0.4% higher at US$19.49.
In a well-timed coincidence, the other big name making moves on Thursday happened to be Canopy’s founder and ex-CEO Bruce Linton, who joined the team at US operator Vireo Health Inc (CSE:VREO) as its executive chairman.
The pot entrepreneur called Vireo “one of the most exciting cannabis companies in the United States.”
“I have taken this role because I share the company's ambitious vision for the future of cannabis,” Linton said in a statement. “We are confident Vireo can become a top US producer and distributor of high-margin, proprietary products within the next several years and create unprecedented long-term shareholder value."
Shares of Vireo rocketed 23% higher in Canada at C$1.66 and 21% higher on OTC markets at US$1.26.
Other stocks making moves in positive territory on Thursday included CROP Infrastructure Corp (CSE:CROP), which gained 20% at C$0.03 on the news that it would be acquired by MYM Nutraceuticals Inc (CSE:MYM).
Empower Clinics Inc (CSE:CBDT) also moved up 25% at C$0.05 after releasing preliminary unaudited third-quarter results Thursday that showed a 138% jump in revenue.
Not all cannabis stocks were feeling the love on Thursday.
CV Sciences Inc (OTCMKTS:CVSI) lost 6.6% at US$1.48 following earlier quarterly results that showed the company missing revenue estimates.
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