The cannabis sector has been struggling to find direction on May 22, with cannabis stocks trading on a largely mixed note in the first half. During the first half of the day, Tilray (TLRY) rose as much as 5.5%, while Acreage Holdings (ACRGF) was up by ~3.6% as of around noon. The ETFMG Alternative Harvest ETF (MJ) was up by nearly 0.6% as of the same time.
Earlier today, Canopy Growth announced its acquisition of This Works, a skincare and sleep solutions company, with the intention of developing hemp-infused products. Canopy Growth is also looking to establish its presence through Acreage Holdings in the United States, where hemp has been legalized. This news could explain the positive momentum in Acreage Holdings today.
Stocks that fell
In contrast to the above-mentioned companies, a handful of stocks have been trading in negative territory today. These include Green Thumb Industries (GTBIF), which was down nearly 3.4%, and Aphria (APHA), which was down nearly 1.1% as of around noon. KushCo Holdings (KSHB) was also trading in the red with a fall of 0.61% as of around noon. OrganiGram (OGI) is another stock that’s been trading deep in the red. It was down almost 6.5% as of around noon today.
The cannabis sector is trading a discount to its historical valuation. To learn more, read Is Now a Good Time to Buy Cannabis Stocks?