Shares of cannabis multi-state operators (MSOs) tumbled on Tuesday afternoon as investors retreated and secured their gains from the recent rally in pot stocks spurred by marijuana rescheduling and banking reform hopes.
Canopy Growth Corporation (TSX:WEED, NYSE:CGC) fell 18.9% to US$1.37 after adding more than 80% on Monday.
Other MSOs Verano Holdings Corp (CSE:VRNO, OTCQX:VRNOF) and Cresco Labs Inc. (CSE:CL, OTCQX:CRLBF) fell 13.6% and 10% respectively.
Green Thumb Industries Inc. (CSE:GTII, OTCQX:GTBIF) was down 8.9%, Trulieve Cannabis Corp. (CSE:TRUL) 6.9%, Curaleaf Hldgs Inc. (CSE:CURA, OTCQX:CURLF) 6.6% and Cronos Group Inc (NASDAQ:CRON, TSX:CRON) 6.4%.
The exception was Aurora Cannabis Inc (TSX:ACB, NASDAQ:ACB), which had added 5.1% at US$0.96 in the early afternoon Tuesday, after adding about 72% to $0.91 at Monday’s close.
Investor positivity on Aurora likely stems from the company on Friday reiterating that it is on track to achieve positive cash flow in the 2024 calendar year.
It said it has repurchased an aggregate of US$9 million in convertible senior notes leaving approximately US$39 million of notes outstanding.
Aurora has repurchased about US$306 million principal amount of its convertible senior notes since December 2021 resulting in cash interest savings of US$23.9 million.
Contact the author at emily.jarvie@proactiveinvestors.com
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