Shares of Cannabis Companies Surge

Shares in cannabis companies surged on Wednesday, extending a months-long rally due to bets on decriminalization under the Biden administration, as the Reddit trading community behind a recent trading frenzy promoted the stocks, reports Reuters.

One post on WallStreetBets, the Reddit forum linked to the past month’s surges in GameStop Corp., AMC Entertainment and others, told users that shares of producers Tilray Inc (Nanaimo, Canada and Aphria Inc (Leamington, Canada) have more room to rise. That post was liked by around 10,000 other users in just 12 hours and shares in the two companies jumped by 21 percent and 10 percent respectively.

Cannabis producer Canopy Growth Corp.’s (Smith Falls, Canada) shares closed Tuesday, up 11.9 percent at $49.09, reports CNBC. The stock has gained about 149 percent over the past year, bringing its market value to more than $17.1 billion. In trading Tuesday, the stock rose to a 52-week high of $50.92.

Shares of other cannabis producers have also surged to record levels, helped by a wave of legalization in major U.S. states. Changes promised by some in the Democratic party could help give cannabis companies access to more traditional methods of banking and open the sector to new, institutional investors.