Ryg recap legalization Edition

Today was definitely a day most of us will remember! With Bill C-45 passing and then Justin Trudeau finally set an official date for legalizing recreational marijuana, the news spread quickly and even in the United States it was over the local news. In 119 days on Oct 17th, 2018 cannabis will finally be legal, right in time for the beginning of the Canadian hockey season. Even if the markets have been slow, the Cannabis Sector definitely felt this news, over half the sector finished green, and less than 20% of the sector finished in the negative. The top 10 stocks of the day combined had a percentage increase of over 20%.

Symbol NAME PRICE CHANGE CHANGEPCT VOLUME
1 CNSX:ACG Alliance Growers Corp 0.300 0.090 42.86% 1,932,597.00
2 TSE:NEPT Neptune Technologies & Bioressources  5.940 1.680 39.44% 4,462,260.00
3 SCU The Second Cup Ltd 2.750 0.450 19.57% 160,356.00
4 CVE:RHT Reliq Health Technologies Inc. 1.850 0.290 18.59% 1,364,584.00
5 CVE:GROW CO2 GRO Inc 0.170 0.020 16.67% 177,980.00
6 NF New Age Farm In 0.070 0.010 16.67% 1,914,325.00
7 CNSX:HUGE FSD Pharma Inc 0.150 0.020 15.38% 37,395,092.00
8 BLO Cannabix Technologies Inc. 1.790 0.220 14.01% 712,989.00
9 CNSX:CHOO CHOOM HOLDINGS INC 1.410 0.170 13.71% 6,330,110.00
10 CVE:KALY Kalytera Therapeutics Inc. 0.180 0.020 12.50% 1,309,585.00
avg 20.94% 55,759,878.00

The top 3 increases were lead by Alliance Growers Corp (CSE: ACG) who Filed an Application in Alberta for Legal Pot Distribution and Launches Seed to Sale Awareness Campaign. Acg had recently signed a letter of intent to acquire 100% of Spyder Vapes Inc, now with this news if approved, would increase revenue and shareholder value. Acg will also plan to apply for dispensaries in BC, and hopefully become a fully vertically integrated company. 

Neptune Technologies (TSX: NEPT) continued its run after announcing a Multi-year Agreement with Canopy Growth to Provide Extracted Cannabis Products  yesterday. Their share price increased by almost 80% in the last 2 days. Nept is a company with a huge extraction facility in Quebec. They currently extracting Krill(small crustaceans) Oils and made over $26.2 million in revenue in the last 12 months ending March 2018. They are not very talked about in the MJ sector, but last year they announced that they would enter the cannabis market and hopefully will get their extraction licence in Q4 2018. Hopefully they will give an update about their facility soon and they recently update their investors presentation.

Second Cup (TSX: SCU) with 19m outstanding shares you dont need a lot of volume for their share price to go up. Their sales might not be better than their previous quarter, but with their strategic alliance with National Access Cannabis (CVE: META) provides the potential to convert select Second Cup cafés to NAC-branded recreational cannabis dispensaries initially across Western Canada. Clearly legalization is huge news for Second Cup and will hopefully increase revenue and investors were trying to capitalize on the news today.

Symbol NAME PRICE CHANGE CHANGEPCT VOLUME
1 TSE:ACB AURORA CANNABIS INC 9.990 0.450 4.72% 18,540,744.00
2 WEED Canopy Growth Corporation 45.360 2.830 6.65% 13,371,950.00
3 TSE:APH Aphria Inc. 12.440 0.500 4.19% 7,481,575.00

The Big 3; Aurora, Canopy, and Aphria all saw huge volume at the start of the day. Canopy which has had a month long uptrend broke 52 week highs and shows investors know who will lead the Cannabis Sector. Tomorrow will be interesting to see if the increase in volume continues. Unfortunately trading in the cannabis sector during the summer is usually boring, with the government is on holidays, licence Fridays usually are uneventful. Hopefully this summer will be different and lets see if Quebec starts picking up the pace in fast tracking licences. Lastly, institutions and wealthy investors were waiting until legalization is official before investing, lets see how long it will take for them to start investing.

Disclaimer: The data found in the images is pulled from google finance and may not be 100% accurate, but gives a good representation of how the stock ded. We do currently own some stocks mentioned in the article above, we do not intend to sell or buy in the next 2 days. Once again we are not financial advisors we are just providing you with information, this is not a buy or sell recommendation for more information please view full disclaimer here.

 

Leave a Reply

avatar
  Subscribe  
Notify of