- The US government floated the draft bill to legalize recreational marijuana federally on July 14.
- Meanwhile, Canadian pot stocks have responded disproportionately.
- Tilray’s stock was up almost two per cent intraday. In contrast, Canopy Growth’s shares were trading in red.
The Democrats have rolled out a draft bill to remove the ban from recreational cannabis at federal level in the US. Currently, 18 states and capital city Washington, D.C. have legalized marijuana.
The Toronto Stock Exchange (TSX) reacted positively on the back the development. Tilray Inc. (TSX:TLRY), operations across North America, climbed as much as two per cent. However, stocks of Canopy Growth (TSX:WEED) were trading in red during the opening hour. Canopy may move to buy Acreage Holdings once the U.S. government decriminalizes pot federally.
Among other top cannabis players on the TSX, Hexo Corp’s (TSX: HEXO) stock was also down as much as two per cent while Aurora Cannabis Inc (TSX:ACB) witnessed a plunge of over 2.5 per cent on Wednesday, July 14, 2021.
Let us briefly glance at the above leading Canadian pot stocks’ performance in 2021:
Tilray stock has doubled year-to-date, propelled by its merger with Aphria. Tilray began trading on the TSX on May 31, replacing Aphria. The company’s free cash flow increased by $12.4 million for the third fiscal quarter of 2021.
Stocks of pot retailer Hexo have yielded over 32 per cent year-to-date (YTD). In the third quarter of 2021, the company posted a two per cent surge in its top line on a year-over-year basis. Its overall net pot sales were also up by two per cent in Q3 FY21.
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Canopy Growth has witnessed a bearish price trajectory in 2021, and its share price has declined by 12 per cent YTD. However, the cannabis firm registered revenue of C$ 148 million in Q4 FY21, a rise of 38 per cent (YoY). The company reported an EBITDA loss of C$ 94 million for the quarter.
Aurora Cannabis stocks are trading flat this year. The company got listed on the New York Exchange (NYSE) on May 25, 2021. However, this listing did not help uplift the stocks. But in the long-term, the company may get back on bull run on the back of the US federal pot legalization.