Canopy Growth Corp., a leading cannabis company, experienced a 12% rally in its stock on Friday, capping off an eventful week for the sector. The surge in optimism comes as the company files for bankruptcy for its BioSteel sports drink unit, a move that TD Cowen analyst Vivien Azer believes will result in narrower adjusted losses for Canopy Growth in the future.
Azer stated, “The improved profitability outlook is encouraging.” Despite cooling off earlier in the week, Canopy Growth’s stock has still managed to increase by 51% over the past five sessions.
This surge in Canopy Growth’s stock is part of a larger trend among cannabis stocks. On Friday, there were fresh indications that the SAFE Banking cannabis bill might be voted on by a Senate committee later this month. As a result, the AdvisorShares Pure U.S. Cannabis ETF saw a 6.6% increase in recent trades, while the ETFMG Alternative Harvest ETF experienced a 2.5% surge.
Individual cannabis stocks also benefited from this uptick, with Curaleaf Holdings Inc. up 4.8%, Green Thumb Industries Inc. up 5.7%, Cresco Labs Inc. up 4.3%, Trulieve Cannabis Corp. up 5.6%, and Verano Holdings Corp. up 8.9%.
Also read: Cannabis banking bill looks poised to get Senate committee’s OK on Sept. 27