Marijuana Stock Report: Pot Stocks Drop Despite Canopy Growth
The North American Marijuana Index dipped downwards on Wednesday amidst enthusiasm for Canopy Growth Corp.’s (TSX:WEED) announced May 24th debut on the New York Stock Exchange under their new symbol CGC. Celebrating the moment, the company released a statement extolling the historic nature of the moment, calling it a company first in line with other moments such as them being the first publicly traded cannabis company in North America. Company shares finished trading on the OTC Pink until the close of business on May 23rd.
“We’re a company focussed on leadership, vision, and integrity and listing on one of the most prestigious exchanges in the world validates the level of execution and ambition our team has demonstrated,” said Bruce Linton, company Chairman, and CEO. “Five years ago, as a small Smiths Falls based start-up in the cannabis sector, we could have never imagined this historic moment.”
Market reaction to the news was slightly less enthusiastic, with Canopy shares falling $0.680 by close of day on the TSX, a drop of 1.72 percent. Whether or not the move to the NYSE shores up the fundamentals for the company remains to be seen, as cannabis is still federally prohibited in the U.S., keeping it off of the radar of most hedge fund managers. For the time being, however, a sense of both hype and hope has infected the weed stocks community.
Meanwhile, on Wall Street investors saw minimal gains following the release of the minutes of the last meeting of the Federal Reserve, which stated that inflation might not result in