Cannabis stocks rallied across the board Thursday, as investors returned to the beaten-down-sector with a fresh enthusiasm, following a historic House vote in favor of a bill that would lift the federal ban on weed.
For more on the bill and vote, read now: House panel passes bill that aims to legalize marijuana, but top Democrat concedes ‘Senate will take its own time’ Stocks may have been further boosted by reports this week that the government of the country’s most populous province, Ontario, was looking to change several aspects of the current model that has allowed a meager 25 stores to open thus far — that’s one for every 600,000 residents, Tilray Inc. Chief Executive Brendan Kennedy said in the company’s third-quarter earnings call.
Wilson is expecting the next phase will mean consolidation as weaker players fail or are bought out in fire sales. Many companies are suffering from cash burn and are scaling back previously agreed deals and cutting costs.“But companies that are well-capitalized, that have real assets and international operations will survive,” he said. Mexico is expected to legalize cannabis for adult use in 2020 and European countries are starting to embrace the substance and create regulatory frameworks.
Law firm Pomerantz LLP said Wednesday it was investigating claims on behalf of Canopy investors relating to concerns about the company and certain of its officers and/or directors regarding possible securities fraud and other unlawful business practices. It cited the company’s weaker-than-expected second-quarter earnings that sent the stock sharply lower, and said one analyst described those numbers as “astounding.