Fire & Flower (FAF) & Canopy (WEED): 2 TSX cannabis stocks to watch

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Fire & Flower (FAF) & Canopy (WEED): 2 TSX cannabis stocks to watch

Fire & Flower (FAF) & Canopy (WEED): 2 TSX cannabis stocks to watch
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Highlights

  • TSX pot stocks have stoked interest among some investors after government publication Canada Gazette proposed new rules to modify certain cannabis research and testing regulations on March 11.
  • The suggestions also included adjustments to dried cannabis equivalency and an increased possession limit for pot drinks.
  • Canopy stock closed at C$ 7.74 apiece, down by over five per cent on Friday, with a trading volume of 1.7 million shares.

TSX pot stocks have stoked interest among some investors after government publication Canada Gazette proposed new rules to modify certain cannabis research and testing regulations on March 11. The suggestions also included adjustments to dried cannabis equivalency and an increased possession limit for pot drinks.

Let us glance at two TSX pot stocks on that note.

Fire & Flower Holdings Corp (TSX: FAF)

Fire & Flower increased its total revenue to C$ 45.41 million in Q3 FY2021, up from C$ 33.19 million a year ago. The Toronto-based pot maker improved its net loss to C$ 1.98 million in the latest quarter compared to a loss of C$ 25.73 million in Q3 2020.

Also read: Canadian Tire (CTC) & Couche-Tard (ATD): 2 TSX retail stocks to watch

The cannabis retailer saw its stock close at C$ 5.06 apiece on Friday, down by over four per cent. FAF stock was roughly 26 per cent up from its 52-week low of C$ 4.03 ( January 24).

Canopy Growth Corporation (TSX: WEED)

Canopy Growth saw its net revenue reduce by eight per cent year-over-year (YoY) to C$ 141 million in Q3 FY2022. The cannabis producer recorded a net loss of C$ 115.5 million in the latest quarter, marking a YoY recovery of 86 per cent.

Canopy stock closed at C$ 7.74 apiece, down by over five per cent on Friday, with a trading volume of 1.7 million shares.

WEED stock was almost four per cent up from its 52-week low of C$ 7.46 (March 8).

Bottomline

This proposal shared by Canada Gazette reportedly seeks to alter how cannabis content of drinks is measure and raise the cap on how many beverages can be purchased at a time. Notably, a number of pot producers, consumers and retailers have been advocating for this move.

The Canada Gazette has given 45 days for the public to make representations concerning the proposed rules before making any changes in the cannabis framework.

Investors should track such key market developments that could positively impact the performance of Canadian cannabis players.

Also read: Verde (NPK) & Nutrien (NTR): 2 TSX agriculture stocks to watch

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