Cannabis stocks soar to brand new highs

Corona, Modelo brewer invests $4 billion in marijuana company

Cannabis stocks have been soaring since the maker of Corona beer boosted its investment in Canadian cannabis company Canopy Growth by $4 billion.

Rival Cronos Group (CRON) has soared more than 40% inside the past week, including an 11% pop Tuesday. Tilray (TLRY), another competitor that will just went public on the Nasdaq last month, has skyrocketed more than 60% inside the last a few days. Tilray shares were up 10% alone on Tuesday.

Both companies, which are also based in Canada, have clearly attracted more interest after Constellation (STZ) took an increased stake in Canopy Growth. that will deal, announced last week, led to a 30% surge in Canopy’s stock (CGC).

Investors are betting that will Constellation, which owns Corona along with also different spirits along with also wine brands, may eventually launch cannabis-based beverages along with also different products.

Infused drinks likely won’t be for sale inside the United States, where cannabis continues to be prohibited by the federal government.

nevertheless they could pop up in Canada. Recreational marijuana sales will become legal there on October 17, which may be another reason why the stocks have been smoking.

Cronos along with also Tilray, as well as Canopy, are all seeking to take advantage of Canada’s legalization of pot along with also there have been a flurry of announcements through the companies about their plans.

Tilray announced on Monday that will This kind of will supply marijuana for the Ontario Cannabis Retail Corporation through its High Park Holdings affiliate. Tilray plans to sell products under the Marley Natural, Irisa along with also CANACA brands.

Cronos said Tuesday that will its products will also be sold through the Ontario Cannabis Retail Corporation. This kind of also has deals to sell recreational marijuana inside the Canadian provinces of British Columbia, Nova Scotia along with also Prince Edward Island.

Tweed, a subsidiary of Canopy Growth, said late Monday that will This kind of also features a deal to sell pre-rolled joints, dried flower, oils, along with also softgel capsules in Ontario starting on October 17.

Investors seem to be hoping that will legalization in Canada will spark more calls for recreational marijuana use to be approved in different countries, including the United States.

nevertheless the decision by Constellation to invest in Canopy seems to be enough justification for some investors to gobble up cannabis stocks like Cronos along with also Tilray as if they were pot brownies.

sy88pgw (brand new York) First published August 21, 2018: 1:31 PM ET

Cannabis stocks soar to brand new highs

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