Cannabis stocks are mostly high, Wednesday, as investors await the high profile stockholder vote on the proposal for Canopy Growth Inc., to acquire Acreage Holdings Inc. as both companies held separate meetings that started since 10 AM.
For the acquisition to push through, shareholders of both companies need to approve the deal which would allow Acreage to sell some of Canopy’s best-known brands, including Tweed and Tokyo Smoke.
As investors anticipate cannabis legalization in the US, Canopy Gworth’s CGC, +0.84% WEED, +0.14% acquisition of Acreage ACRGF, +1.83% for $3.4 billion, analysts said that the merger would give Canopy the leverage in what they call the world’s biggest cannabis market.
Canopy, which will report its fiscal fourth-quarter earnings after the bell Thursday, has warrants in two other U.S. companies, Terrascend and Slang Worldwide, which it can exercise once federal regulations change.
Bank of America lowered its stock price target for Canopy by $5 to $75 on Wednesday, according to Benzinga. The bank is sticking with its buy rating on the stock, which was last up 1.7%.
Meanwhile, the vote is said to motivate the optimistic trading for cannabis stocks, Wednesday, with the newly listed cannabis-software company Akerna’s stock rockets 60% on its second day of trading on Nasdaq.
CannTrust Holdings Inc. shares CTST, +8.67% TRST, +5.86% jumped 7% following its announcement that it will open up businesses in the United States in a joint venture with California’s Elk Grove Farming Co. LLC. The jointly owned company will provide access to more than 3,000 acres of land in the Golden State to produce hemp with a high concentration of CBD, the non-intoxicating ingredient in the plant that is held to have wellness properties.
“The opportunity in the U.S. for CannTrust is to become a trusted supplier of consistent, standardized and high-quality hemp-derived CBD formulations at scale,” CannTrust said in a statement.
Other cannabis stocks are also ending the day with a positive note.