FSD Pharma Inc (CNSX:HUGE)—Canada’s new penny stock churning darling—had a strong session today. The Canadian cannabis LP with big indoor medical grow aspirations increased by ↑20.00%, on volume that can only be described as “HUGE”.
All told, 53.08 million shares traded hands today—volume that was only trumped on May 29, the company’s inaugural session. The company did announce the hire of a new Chief Commercial Officer, but today was all about indiscriminate buying of all things cannabis. Both large and small caps found a bid, lead of course by the king—Canopy Growth.
FSD Pharma has been particularly strong of late however.
Over the past eight sessions, prices have maneuvered ↑140.00% off the lows to a closing price of $0.18 today. Granted, the low numeric nature in price inflates percentage gains versus its peers. However, FSD Pharma has to work through the largest-sized float in the Canadian cannabis space today—1,319,600,458 shares outstanding according to TMX Money. Working through each level to achieve these types of gains is no ordinary task.
Despite its penny stock status, the company is worth $238 million; on par with more recognizable names like MYM Nutraceuticals Inc., WeedMD Inc., Maricann Group Inc. and CannaRoyalty Corp. Not many sub-quarter microcaps can make that distinction.
Hiku Brands and WeedMD to merge in transformational transaction to create vertically integrated industry leader
Overall, the junior cannabis space experienced extensive gains on the session. Several issues cracked double-digit percentage gains; the more beaten down names recovered the most. Particular Auxly Cannabis Group Inc. and InMed Pharmaceuticals Inc., which finished up ↑17.70% and ↑12.82% respectively.
It will be interesting to see how much juice this multi-day cannabis rally has remaining before sanity returns. As per trend, the Tier-3’s generally start rallying near the later innings of major sector inflows. That isn’t to say there isn’t merit or more rallying ahead, but buying does appear to be getting rather indiscriminate in many cases.
Investors will certainly enjoy the party while it lasts.
|Cannabix Technologies Inc||2.2||0.41||22.91%||4.07m|
|Hiku Brands Company Ltd.||1.57||0.26||19.85%||1.96m|
|Auxly Cannabis Group Inc.||1.33||0.2||17.70%||7.60m|
|InMed Pharmaceuticals Inc.||0.88||0.1||12.82%||1.30m|
|The Hydropothecary Corporation||5.3||0.33||6.64%||5.38m|
|Cronos Group Inc.||7.67||0.45||6.23%||8.15m|
|Canopy Growth Corporation||47.76||2.4||5.29%||12.58m|
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