Aurora leads Canadian cannabis stocks higher after pot trade group beefs up ranks with industry exec

By Steve Gelsi

Ex-Canopy executive joins Cannabis Council of Canada, drawing praise from Aurora SVP

Aurora Cannabis Inc. led big gains among Canadian cannabis stocks on Wednesday after a former pot-industry executive was named president of the Cannabis Council of Canada trade group.

Paul McCarthy, who was formerly head of corporate policy and international implementation at Canopy Growth Corp. (CGC), was named president of the Cannabis Council of Canada (C3) on Tuesday.

"We are confident that under his leadership, C3 will continue to be a leading voice in advocating for a thriving and responsible cannabis industry," said Rick Savone, chair of C3 and senior vice president at Aurora Cannabis, in a statement.

Aurora Cannabis shares (ACB) rallied by 44% at the closing bell on Wednesday.

It was the seventh-largest one-day gain ever for Aurora's stock and its largest daily rise since Sept. 11, 2023, when the company's shares jumped by 72%.

With a closing price of $7.21 a share, Aurora is now at its highest levels since September. It's risen by 127.4% in the past month.

An Aurora Cannabis spokesperson did not comment on the company's stock move.

Elsewhere across the industry, Canopy Growth shares climbed more than 30% on Wednesday, bringing their gains over the past month to 239%.

Meanwhile, Tilray Brands Inc. (TLRY) rose 18.3%, OrganiGram Holdings Inc. (OGI) was up 12.3%, SNDL Inc. (SNDL) jumped by 22.6% and Cronos Group Inc. (CRON) gained 8.7%.

The rally in Canadian cannabis stocks on Wednesday came on top of tailwinds in the sector as Germany's decriminalization of pot took effect on Monday.

Also read: Canopy Growth's stock doubles to record weekly gain after Germany votes to legalize pot

In the U.S., Florida's Supreme Court on Monday allowed a recreational-marijuana referendum to be placed on the ballot.

Also this week, Canopy Growth received an endorsement from Institutional Shareholder Services for a shareholder vote that will clear the way for the creation of Canopy USA.

Also read: Canopy Growth wins ISS support for vote to pave way for entry into U.S. cannabis market

Aurora Cannabis on Monday issued a statement supporting the reforms in Germany.

"These developments offer a distinct opening for Aurora, a leading provider of medical cannabis in Germany, to enhance its established footprint in the country," Aurora said.

Alliance Global Partners analyst Aaron Grey on March 22 listed Aurora Cannabis, along with Curaleaf Holdings Inc. (CURLF) and Tilray, as positioned to benefit from cannabis-business growth in Germany due to its international presence.

Also read: Cannabis stocks extend gains after Biden White House shows support of marijuana reforms

-Steve Gelsi

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04-03-24 1634ET

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