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HomeBusiness ReportAFTER THE BELL: Canadian Cannabis stocks rise, Dow retreats from earlier gains

AFTER THE BELL: Canadian Cannabis stocks rise, Dow retreats from earlier gains

A rise in gold, cannabis stocks, and the materials sector wasn’t enough to keep Canada’s stock exchange in the green today.

The TSX slipped four points, dragged by dips in the influential energy and financials sectors.

Cannabis stocks jumped, two days before the commercial sale of recreational marijuana becomes legal across Canada.

Cronos jumped 18.4 percent, Canopy Growth climbed 13.6 percent while perennial front-runner Aurora Cannabis rose 9.9 percent, helping the health care sector climb 6.7 percent.

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On Wall Street, the Dow is trying to shake off last week’s heavy losses, sparked mainly by a sudden jump in interest rates.

Stocks were mixed throughout the day and after triple digit gains in the afternoon, the index retreated and lost 89 points.

The Nasdaq fell by 66 points, weighted by losses in Apple, Microsoft and Netflix.

Oil was up 38 cents to $71.72 US a barrel as geopolitical tensions rise between the U.S. and Saudi Arabia, with American sanctions on the oil-producing Arab country fast approaching.  

Gold continued to be a safe haven for investors, increasing $8.70 to $1,228 while the loonie strengthened, gaining 19/100ths of a cent to $.07698 US. The dollar rose after the Bank of Canada survey reported near-term business prospects continue to be robust.

Meanwhile one of Canada’s largest cannabis companies made a huge acquisition today, as Canopy Growth entered into an agreement to acquire ebbu, Inc., an Evergreen, Colorado-based hemp research leader.

According to Canopy Growth, the transaction will complement and accelerate multiple core verticals operating under Canopy Growth’s group of companies.

Canopy Growth will pay $25 million and issue 6,221,210 Company common shares to ebbu in exchange for the assets being acquired.

Up to a further $100 million in purchase price will be paid if certain scientific related milestones are achieved within two years following closing.

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