The Globe and Mail reports in its Tuesday edition that shares of Aurora Cannabis rose nearly 15 per cent on Monday, continuing a rally that saw the company's shares soar 137 per cent last week. The Globe's Mark Rendell writes that the Canadian marijuana grower, which reported quarterly earnings on Monday, appears to be benefiting from investor enthusiasm regarding the results of the U.S. election. Five more states passed ballot measures approving some form of cannabis use (Arizona, Montana, South Dakota and New Jersey approved recreational consumption, while Mississippi accepted medicinal use). President-elect Joe Biden has also expressed support for cannabis decriminalization, although not full federal legalization. While Canadian companies listed on the Toronto Stock Exchange cannot participate in U.S. state-level recreational marijuana markets because of exchange listing rules, many have positioned themselves to enter the U.S. once federal laws change, and are already active in U.S. cannabidiol (CBD) markets. Federal reforms may still be a long way off, with the Republicans appearing to maintain control of the Senate. Some analysts said Aurora's share-price momentum could have been fuelled by a short squeeze.
© 2021 Canjex Publishing Ltd. All rights reserved.