Cannabis Producers’ Stocks Reach Record Highs

The stock prices of American and Canadian cannabis producers have soared to record levels, driven by a surge of excitement in the market. This rally was fueled by two major deals. On Tuesday, authorities in Ontario, Canada, announced contracts with 26 cannabis producers for future supply. Earlier, on August 15, Constellation Brands, the maker of Corona beer, revealed a $4 billion investment in cannabis producer Canopy Growth.

Legalization and Market Impact

Recreational cannabis sales will become legal in Canada starting October 17. In Ontario, initial sales will be conducted through the online Ontario Cannabis Store. The list of companies awarded contracts by the provincial government includes major players like Canopy Growth, Aurora Cannabis, and Aphria, as well as several smaller firms.

Stock Market Performance

• Canopy Growth’s shares have surged by more than 30% over the past week.
• Cronos Group’s stock price increased by 3.27 CAD, a jump of 43.72% in one week.
• Tilray, another major player that went public last month, saw its shares rise by $15.69—an increase of nearly 65%.
• Beleave Inc., a Canadian producer awarded an Ontario contract, saw its stock price rise by almost one third.
• Newstrike Brands’ shares climbed by more than 45%.

These developments highlight the rapid growth and investor enthusiasm in the North American cannabis industry as legalization approaches in Canada.