Here's Why Tilray and Canopy Growth Jumped Tuesday but Hexo Crashed
The share prices of many Canadian cannabis companies often move largely in tandem based on general sector news and any progress toward federal marijuana legalization in the U.S. But on Tuesday, the bigger names are getting some love from Wall Street while smaller Canadian pot stocks are dropping.
Shares of Tilray Brands (NASDAQ: TLRY) and Canopy Growth (NASDAQ: CGC) were up 6.4% and 5%, respectively, at their highs of the session. As of 1:24 p.m. ET, Tilray and Canopy were still up 4.1%, but smaller player Hexo (NASDAQ: HEXO) was down 6.9%.
The moves are likely explained by some news out of Tilray and Hexo. Back in March, the two companies entered into a strategic alliance. The agreement called for Tilray to purchase senior secured convertible notes in Hexo. But Hexo stock has plummeted about 60% since that deal was inked, and now, the two have agreed to change its terms.
Source Fool.com
