Cronos Group Leads the Way Following Last Night’s Surprise 30% After Hours Move
The Begining of a Major Short Squeeze Could Be Under Way
Legalization 2.0 of edibles and extracts officially goes into effect today with products hitting the shelves this December. Cannabis stocks are roaring today with some touching double digits. There is a renewed sense of FOMO in the air after Cronos Group (TSX: CRON) (NASDAQ: CRON) made a surprise 30% move on 4 million shares traded last night in after-hours trading. The move was one of the largest in Cronos Group’s history and fueled rampant speculation as to the cause.
Was it legalization 2.0? Is Altria (NYSE: MO) buying out the rest of Cronos Group? Is another large investor or partner coming on board? Or is it simply the start of a short squeeze? As of right now, the question remains since Cronos did not release news this morning.
The lack of a morning press release wasn’t enough to slow the stock down as CRON soared over 25% out of the gate and is currently trading around $12 per share, up 10% as investors attempt to fade the breakout.
The company did issue a statement yesterday via press release regarding its AUD $20 million IPO of Cronos Australia. It is anticipated that Cronos Australia will issue 40 million new shares at an offering price of AUD $0.50 ahead of its planned listing on the Australian Securities Exchange (ASX) in November of this year. It is unclear at this time whether yesterday’s news had any impact on Cronos Group’s share price.
“We are excited by this offering, which enables Cronos Group to unlock value for our stakeholders while also continuing to participate in Cronos Australia’s growth as they work to become the market leader for medicinal cannabis in the Asia-Pacific region,” stated Cronos Group CEO Mike Gorenstein.
Source: Shutterstock
Something certainly seems to be brewing here with Cronos and the renewed optimism has spilt over into other top marijuana stocks. At the time of this writing, Cronos and peers are pulling back from the early morning pop as traders fade the breakout. If cannabis stocks can battle back and continue the move higher than it’s a fantastic sign that the sector is setting up for a big reversal.
Here are today’s top pot stock gainers:
- Cronos Group (TSX: CRON) (NASDAQ: CRON) | +10%
- HEXO Corp. (TSX: HEXO) (NYSE-A: HEXO) | +12.3%
- Organigram (TSX: OGI) (NASDAQ: OGI) | +6.4%
- Aurora Cannabis (TSX: ACB) (NYSE: ACB) | +5.1%
- Green Organic Dutchman (TSX: TGOD) (OTCQX: TGODF) | + 4.7%
- Tilray (NASDAQ: TLRY) | +3.5%
- Canopy Growth (TSX: WEED) (NYSE: CGC) | +2.1%
- Aphria (TSX: APHA) (NYSE: APHA) | + 1.1%
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