Cannabis legalization grows stocks: The Senate has passed the Cannabis Act, paving the way for legal recreational cannabis use in Canada. As a result, many are keeping a close eye on the Canadian cannabis market as stocks look to be growing.
Some stocks are benefiting from the passing of Bill C-45, while others appear unaffected. However, in light of how monumental this news is, we're not going to focus on the latter.
In this article, we're going to be looking at one particular Canadian cannabis stock that has found itself up nearly 20% today - which just so happens to be the same day that Trudeau gave the country a target date for the law to go into effect.
Cannabix Technologies Soars: June 21st, 2018
On Wednesday, June 21st, the Cannabix Technologies stock soared nearly 20%. At the time of writing, the market is still open, meaning Cannabix Technologies has the potential to keep surging. What's interesting is that the British Columbia-based company has not announced anything today. This means there's no direct reason from the company for the spike.
That said, a few hours ago, Prime Minister Trudeau gave the date of October 17th for cannabis legalization to go into effect. This, in general, may have caused optimism in the Canadian cannabis market. If this is the case, then we have an explanation as to why some Canadian cannabis stocks are soaring on no news. Is it possible that cannabis legalization grows stocks?
Cannabix Technologies: BLO Price Chart
According to Google Finance, at 3:45 p.m. EDT, Cannabix Technologies (CSE:BLO) is trading at $2.05 on the Canadian Securities Exchange. This means the stock was up 14.53% at the time. As a small-cap company, Cannabix Technologies has a market cap of less than $200B, sitting at roughly $177M.
Cannabix Technologies Has Made Moves Elsewhere
Of course, just because Cannabix Technologies hasn't announced anything today doesn't mean the stock is up just because of the Canadian cannabis legalization announcement. The company itself is quite successful and has been throughout this entire month.
On June 18th, Cannabix Technologies provided the masses with an update on its development of a marijuana breathalyzer.
The Takeaway
Why do you think Cannabix Technologies is trading up today? Better yet, what do you think of the Canadian cannabis legalization?
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Featured Image: Radiozero
