IGC Marijuana Stock Skyrockets After Entering CBD Drink Market, Sees Bitcoin Price Style Growth
Cannabis stocks have experienced a very moved September. Nonetheless, on Wednesday, most of them were not showing positive price movements. But Supreme Cannabis Co. and India Globalization Capital Inc (IGC) surged. Aleafia Health Inc. did not have the same luck and swung sharply after several days registering gains.
Investors are very careful to a new regulatory environment in Ontario, where new laws will define how cannabis can be sold in retail shops. One of the different frameworks discussed is obtaining licensed for these products. On October 17, full legalization in Canada will be discussed.
IGC was able to register 24% gains after announcing that it entered the hemp/cannabidiol-infused energy drink business. It has also signed an agreement to distribute the ‘Nitro G’ drink. And indeed, the trading volume of the company skyrocketed to 33.4 million shares. This shows a very important increased compared with the average of over 11.2 million shares.
Supreme Cannabis shares grew 3.9% as well, near to close at their highest level since February 2018. The price experienced this positive movement after its 7 Acres subsidiary entered a 12-month supply pact with Tilray. This agreement is expected to work for supplying medical cannabis patients in Canada.
Additionally, its volume has also increase to 2.2 million shares. This is more than double than the full-day average registered by the company. Tilray stock has also grown 7.3% being traded close to $112 dollars.
Aleafia Health Inc. experienced a strong reversal that drove the price down 19%. This happens just a day after the company announced that it received a $10 million investment from the Serruya family.
The Horizons Marijuana Life Sciences Index ETF was traded 1.1% down. Aurora Cannabis lost 4.54% and Cronos Group Inc. has also lost 2.4%.