Pot Stocks Get Early Sell Orders After Reaching Record Highs

(Bloomberg) -- Marijuana stocks took a nose dive in the early trading, a day before legalization in Canada.

Most of the pot stocks saw an up-tick at the open, but quickly fell afterward, causing some them to see some volatility-halts. However, several of these shares are now inching back, after the sudden drop.

Pot giant Canopy Growth Corp. fell as much as 10.1 percent in Canadian trading. Organigram Holdings Inc., Tilray Inc. are also among the companies that dipped around the same time. Namaste Technologies and Aurora Cannabis dropped more than 9 percent and saw volatility-halts in trading. Most of these cannabis stocks reached near record highs yesterday, and the selloffs could be tied to algorithms related to all-time high prices.

Marijuana ETFs such as ETFMG Alternative Harvest and Horizons Marijuana Life Sciences Index ETF also tumbled more than 4 percent today.

To contact the reporter on this story: Aoyon Ashraf in Toronto at aashraf7@bloomberg.net

To contact the editors responsible for this story: Courtney Dentch at cdentch1@bloomberg.net, Brad Olesen

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