Cannabis stocks surge toward first gain in 6 days

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Cannabis stocks surge toward their first gain in 6 days

Cannabis stocks traded broadly higher Tuesday, as an upbeat industry research note helped provide a welcome reprieve from the string of losses resulting from concerns over regulatory scrutiny and general stock market weakness.

The gains come as the S&P 500 index SPX, +1.75% rallied 1.7%, after declining 2.9% the past five sessions, and the Dow Jones Industrial Average DJIA, +1.81% jumped 427 points, or 1.7%, after losing 766 points over the previous five days. See Market Snapshot. Those concerns seemed to overshadow news that Illinois passed a bill to legalize adult use cannabis, and that Alabama passed a bill to open the way for legalizing medical marijuana.

“The edibles market alone is estimated to be worth about [C]$1.6 billion [$1.2 billion] a year in Canada, with cannabis-infused beverages adding a further [C]$529 million,” said Deloitte Canada’s Cannabis National Leader Jennifer Lee. “According to our research and stakeholder interviews, much of this economic boost will be on top of current cannabis product spending.”• The global market for alternative cannabis products is expected to nearly double over the next five years to $194 billion.

Elsewhere, shares of Aleafia Health Inc. ALEF, +2.88% gained 2.5%, Canopy Growth Corp. CGC, +3.25% WEED, +3.44% advanced 4.2% and Green Growth Brands Inc. GGBXF, +16.00% soared 18%. In some other corporate news, Puration Inc. PURA, -1.31% said Tuesday it signed a new East Coast distributor for its EVERx CBD Sports Water, which the company targets 2019 revenue of $4 million, after generating $1 million in revenue in 2018.

 

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