Tilray Leads Pot Stock Gains as Coca-Cola Said to Eye CBD Drinks
(Bloomberg) -- Pot stocks Aurora Cannabis Inc. and Tilray Inc. led gains among cannabis peers Monday after Coca-Cola was said to be in discussions with the company to develop cannabidiol-infused beverages.
- Aurora surged as much as 15 percent to its highest intraday price since June 22
- Tilray climbed as much as 9.4 percent, adding to its 40 percent gain last week
- Canadian peers Organigram climbed 9.1 percent, Green Organic Dutchman rose 7.6 percent, Canopy Growth up 1.8%
- Cronos erased pre-market gains to fall as much as 1.9 percent; Aphria down as much as 3.8%, erasing early gains
- Cowen analyst Vivien Azer sees Aurora, Tilray, Aphria as likely partners for consumer products companies given their scale, and would expect to see more deals between Canadian cannabis companies and larger alcohol makers
- Coca-Cola in a separate statement said it was “closely watching the growth of non-psychoactive CBD as an ingredient in functional wellness beverages,” although no decisions had been made; BNN Bloomberg Television reported earlier it was working with Aurora on the products
- New Age Beverages, which last week said it was testing CBD-infused beverages in Colorado, also jumped, surging as much as 30 percent
- Last month, Corona-parent Constellation Brands invested an additional $3.8 billion in Canopy Growth, bringing its stake to 38 percent of the cannabis company
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