Weed Broke the Canadian Stock Market
On Wednesday morning, six marijuana-based companies had their TSX trading halted after they tripped a circuit breaker during a massive spike in their stock prices.
On Wednesday morning, six companies had their TSX trading halted after they tripped a circuit breaker during a massive spike in their stock prices.
The breakers are tripped when a stock climbs more than ten percent in five minutes.
The companies that tripped the breaker were Aphria, Aurora Cannabis, Mettrum Health Corp, OrganiGram, Canopy Growth, and Supreme Pharmaceuticals—all of which deal in the wonderful world of marijuana.
That's right folks, weed kind of broke the TSX.
The Financial Post reported that trading on the companies was halted after some experienced up to a 44 percent surge. The halts occurred because the massive uptick tripped a "single stock circuit breaker," they were removed from the stocks shortly after they were issued.
People out there really want to get their hands on that sticky icky.
The IIROC issues halts when companies are about to deliver major news, regulatory reasons and, as in this case, when there is unusual trading activity.
The pot industry in Canada is booming at the moment thanks to more and more states south of the border legalized the drug.
At the moment, it is unknown what caused the sales to skyrocket like they did on Wednesday morning but, in general, stocks in marijuana companies have been going up—even more so since seven new states voted in favour of legalizing weed for recreational uses.
Also, just this week, Canopy Growth, one of the companies dinged by the circuit trip, became the first Canadian company in the sector valued at over $1 billion.
For many of the companies the day was a roller coaster ride with stocks hitting chill highs followed by some bummer lows.
Canopy Growth alone drifted from $17.86 as a high and $9.75 as a low.
Photo via Flikr user GoToVan
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