All that excitement about the re-scheduling ( as we knew it would ) lasted all of 10 minutes!
We presume some got their lb of flesh in the short window– now back to normal
Canopy Growth Corporation (TSX:WEED, NYSE:CGC) stock fell about 10% on Tuesday morning as investors pulled back on the stock following Monday’s surge.
Shares of the cannabis company fell about 9.7% to $1.53 at 10.30 am, after the stock booked an 81.4% gain to US$1.69 at Monday’s close.
Aurora Cannabis Inc (TSX:ACB, NASDAQ:ACB), however, continued to make gains after adding 72.2% to US$0.91 at yesterday’s closing bell. On Tuesday morning, Aurora had added another 6.5% at US$0.97.
Spurring the two stocks higher on Monday was enthusiasm around the potential rescheduling of marijuana as a lower-risk drug in the United States.
Another tailwind for the pot stocks has been an update on long-awaited cannabis banking reform.
The Senate Banking Committee is expected to vote on the Secure and Fair Enforcement (SAFE) Banking Act, which would remove penalties for banks and other financial institutions providing services to legal cannabis-related businesses, on September 18, according to analysts at Water Tower Research.
Should the committee vote in favor of the bill, it is expected to go before the Senate for another vote this fall.
Investors on Tuesday also pulled back on other recently well-performing cannabis companies, including Tilray Inc (NASDAQ:TLRY) which was down 9.8% to US$2.99, SNDL (NASDAQ:SNDL) was down 5.1% at US$2.07, Trulieve Cannabis Corp. (CSE:TRUL) was down 3.9% to US$6.92, and Curaleaf Hldgs Inc. (CSE:CURA, OTCQX:CURLF) shed 2% at US$5.14.
What may be keeping Aurora Cannabis in positive territory despite the souring sentiment towards cannabis stocks was its announcement on Friday that it has repurchased an aggregate of about US$9 million in convertible senior notes.
Aurora said it continues to progress towards its target of being cash flow positive in the 2024 calendar year with about US$39 million of notes outstanding.
