Marijuana Stocks Plunge As Aurora Cannabis Gets Set For U.S. Trading Debut

Marijuana stocks continued to plummet as Aurora Cannabis gets set for its New York Stock Exchange trading debut on Tuesday.

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Marijuana stocks have been in a tailspin since recreational cannabis became legal in Canada last Wednesday. Despite strong demand, there have been reports of shortages. In addition, stocks have been under pressure amid a wider market sell-off.

So the first day of trading for Canadian marijuana giant Aurora Cannabis, which will trade under the ticker ACB, may be a fraught one. Chief Corporate Officer Cam Battley told IBD in September he was looking forward “very much to a reduction in volatility in this sector.” However, his hopes have been dashed.

Canopy Growth (CGC), the first pure-play marijuana company to list on the NYSE, sank 11% on the stock market today and is now 29% off its high — and well below its 50-day line. It has now been selling off in high volume for the past five sessions.

Cronos Group (CRON), the first pot stock to list on the Nasdaq, tumbled 12% and has shed 44% of its value since reaching a high of 15.30 on Sep.19. Tilray (TLRY), which joined the Nasdaq in July as the first pure-play marijuana IPO on a big U.S. exchange, dived 16% and has now lost nearly 60% of its value since reaching 300 on Sept.19.

Cannabis-focused exchange traded fund ETFMG Alternative Harvest (MJ) was down 9.5%. AdvisorShares Vice ETF (ACT), which also has exposure to cannabis, was flat.

Aurora Cannabis Linked With Coca-Cola

Aurora Cannabis stock jumped and the firm rose to prominence on reports it was in talks with Coca-Cola (KO) to produce cannabis beverages. In a statement, Aurora declined to comment.

“The company does confirm that it engages in exploratory discussions with industry participants from time to time,” it said. “At this time the company confirms there is no agreement, understanding or arrangement with respect to any partnership with a beverage company.”

Coca-Cola, meanwhile, said no decision had been made on striking a deal with a cannabis company to make infused drinks. But it said it was “closely watching the growth of nonpsychoactive CBD as an ingredient in functional wellness beverages.”