Aurora Cannabis, Canopy Growth surge Monday on strong day for marijuana stocks

Canopy Growth stock explodes higher, here's what their CEO says is next for the pot company from CNBC.

After announcing that its extraction technology partner, Radient Technologies (TSX-V:RTI) (OTCQX:RDDTF) had received its Standard Processing License from Health Canada on Monday, shares of Aurora Cannabis (NYSE:ACB) shot up 9 percent to over $8. In fact, Canada’s number two Licensed Producer is now trading at its highest volume since November 7, with put option volume being outpaced by call option volume nearly 10 to one.

Signs on the marijuana market point to confidence among traders that the current rally will continue.

According to a statement, Aurora noted that Radient’s new technology could produce higher throughputs via their benchmark technologies, leading to what the company calls higher-quality CBD.

"Early on we identified that the ability to extract cannabis and hemp at large-scale while preserving quality would be a crucial competitive advantage to address the rapidly growing market for derivative products, such as vapes pen solutions, softgels, edibles, and beverages," said Terry Booth, Aurora's CEO in a statement.

[Namaste Tech fires CEO Sean Dollinger amidst allegations of fraud, breaches of fiduciary duty]

He continued: "With the upcoming new regulations permitting additional form factors and Radient's recent receipt of its processor license, we are in a strong position to rapidly expand production of a broad portfolio of extract-based products, tying in well with the significant scale-up of our global cannabis and hemp operations. We look forward to continuing to work closely with Denis Taschuk and his team at Radient to drive accelerated growth for both companies."

Aurora Cannabis Inc.

Marijuana stocks rally on Monday

Monday was a banner day for most of the cannabis sector, save perhaps for Sean Dollinger of Namaste Technologies (OTCMKTS:NXTTF). Major players such as Canopy Growth Corporation (TSX:WEED) (NYSE:CGC) and Tilray (NASDAQ:TLRY) saw gains as well, a sign that confidence has returned to the market.

Last week sparked a surge when Canopy Growth CEO Bruce Linton told CNBC that his company could make billions of dollars if cannabis were to become federally legal in the United States. The comments trickled down throughout the sector, again boosting the confidence of investors.

"On a global basis, you'll see THC is an active ingredient in probably 85 - 90 percent of our total global revenues," Linton told CNBC’s “Fast Money." He continued by stating that if THC were to be legalized in the U.S., "it's a many tens of billion-dollar opportunity and it's going to be coming down to great products with great brands."

[Marijuana stocks weekend investor roundup: Analysis of the week's most important events in the cannabis industry (February 2)]

Both Canopy Growth and Aurora Cannabis plan to capitalize on the new farm bill which legalized hemp in the U.S. last year, with each company expected to sell their own brands of CBD and other hemp-related products in the country.

Canopy Growth Corporation
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