Cannabis-related stocks were mostly lower Wednesday, but there was still plenty to pique investors’ interest, as Supreme Cannabis Co. Inc. and India Globalization Capital Inc. surged in active trade, while Aleafia Health Inc. swung sharply lower to snap a seven-day win streak.
Investors will be on the lookout for the unveiling of a new law in Ontario, expected this week, that defines how cannabis will be sold in retail shops and who can enter the market. Among the provisions is a framework for obtaining licences. This law would come ahead of full-legalization of marijuana in Canada on Oct. 17.
Maryland-based India Globalization’s (IGC) stock IGC, +52.32% rocketed 30% to pace the NYSE American stock exchange’s gainers, and to close at a 5-year high. The infrastructure and cannabis pharmaceutical company said it entered the hemp/cannabidiol-infused energy drink business with an agreement to distribute “Nitro G” drink.
Trading volume ballooned to 37.1 million shares, compared with the full-day average of about 11.2 million shares, according to FactSet. The stock has now soared nearly six-fold (up 480%) over the past three months.
Supreme Cannabis shares SPRWF, -2.61% FIRE, -2.67% rallied 2.5%, after the Toronto-based company said its 7Acres subsidiary entered into a 12-month supply pact with Tilray Inc. valued at the equivalent of about $9.3 million (C$12 million), to supply Tilray Canada with dried cannabis to be used primarily to support medical cannabis patients in Canada.
Volume jumped to 2.3 million shares, or more than doubled the full-day average.
Tilray’s stock TLRY, +14.67% got a 6.1%, to close Wednesday at about five-times the closing price of $22.39 on July 19, which was its first-day of trading on the Nasdaq exchange.
Elsewhere, Aleafia Health Inc. shares ALEAF, +10.94% ALEF, +10.32% tumbled 22%, reversing an earlier gain of as much as 18% to a record intraday high, a day after the company said it received a $10 million investment from the Serruya family, as part of the deal to take a majority stake in Serruya-led One Plant.
The stock, which suffered its first decline in eight sessions, had run up 158% during its seven-session win streak through Tuesday, and has seen a more-than five-fold increase in price (up 434%) over the past three months.
Meanwhile, the Horizons Marijuana Life Sciences Index exchange-traded fund HMMJ, -2.26% slumped 1.5%, but was still up 36% over the past three months, while the S&P 500 index SPX, +0.28% has gained 7.6%.
Among the more-active decliners, Aurora Cannabis Inc. shares ACBFF, -4.51% ACB, -4.18% shed 4.4% on volume of 13.8 million shares. The stock had run up to an eight-month high on Tuesday in the wake of the Vancouver-based medical cannabis company’s fiscal fourth-quarter results, in which the company swung to a C$79.9 million profit.
Elsewhere, shares of Cronos Group Inc. CRON, -1.71% fell 3% to suffer a fourth-straight loss, Canopy Growth Corp. CGC, -4.92% WEED, -4.94% lost 1.4%, New Age Beverages Corp. NBEV, -7.88% slipped 0.5% and DavidsTea Inc. DTEA, +26.67% shed 4.3%.