Cannabis Stocks Are Soaring: Cronos Group (CRON) | Tilray (TLRY) | Canopy Growth (CGC)


Cannabis Stocks CGC CRON TLRY Stock NewsCannabis stocks like Cronos Group Inc (NASDAQ: CRON), Tilray Inc (NASDAQ: TLRY) and Canopy Growth Corp (NYSE: CGC) are all seeing massive gains in the market today, and for good reason. A massive investment was made in Canopy Growth, marking the largest in the history of the sector and exciting investors surrounding the cannabis industry as a whole. Today, we’ll talk about:

  • The investment;
  • what we’re seeing from cannabis stocks; and
  • what we’ll be watching for ahead.

Investment In CGC Leads To Cannabis Sector Growth

As mentioned above, the cannabis sector is having an incredibly strong start to the trading session this morning after an announcement surrounding the biggest investment in the history of legal cannabis was made. In a press release issued early this morning, Constellation Brands announced that it would be investing C$5 billion ($4 billion USD) in Canopy Growth at a 37.9% premium. As a result of the investment and assuming exercise of existing Constellation warrants, Constellation will soon own 38% of the company. The deal also includes warrants that, if exercised, would lead to another C$4.5 billion investment in the company.

While this seems like news that should only have an affect on CGC at first glance, the truth of the matter is that it’s great news for the entire sector. After all, the goal of the investment is to put Canopy Group on a strong foundation to tackle markets in nearly 30 countries that are considering federal changes to allow for legal medical cannabis as well as many recreational markets.

Ultimately, this investment isn’t just an investment in CGC. It’s an investment in the cannabis sector as a whole, providing further validation for those who are questioning the potential of the industry. This bet toward legalization is a massive one, and has far reaching implications for the market and its investors as a whole.

What We’re Seeing From The Cannabis Sector

With such positive news hitting the cannabis sector, CGC along with other leaders within the industry are seeing massive gains in the market today. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (8:56), CGC is leading the charge at $34.61 per share after a gain of $9.99 per share or 40.58% thus far today. CRON comes in second plays at $6.35 per share after gaining $0.70 per share or 12.39% so far. Finally, TLRY isn’t far behind at $27.06 per share after gaining $2.81 per share ro 11.59% thus far today.

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What We’ll Be Watching For Ahead

Moving forward the CNA Finance team will continue to keep a close eye on CGC, CRON, TLRY and the rest of the cannabis industry. The truth is that today’s news marks an exciting time to come for the cannabis sector. As big money players continue to get involved, more funds will be pushed toward lobbying for change in legalities surrounding the plant, which could make many in the sector millionaire printers. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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