Globe says Aurora Cannabis, rivals heavily shorted

Globe says Aurora Cannabis, rivals heavily shorted

Aurora Cannabis Inc (C:ACB)
Shares Issued 561,515,531
Last Close 6/19/2018 $9.54

Wednesday June 20 2018 - In the News

Also Aphria Inc (C:APH) In the News
Also Auxly Cannabis Group Inc (C:XLY) In the News
Also Medmen Enterprises Inc (C:MMEN) In the News
Also Delta 9 Cannabis Inc (C:NINE) In the News

The Globe and Mail reports in its Wednesday, June 20, edition that investors have been pushing pot stocks back near their highs as the federal government neared passage of legislation that will legalize recreational use of the drug. The Globe's David Milstead writes that shares of Canopy Growth, Canntrust Holdings, Hydropothecary, OrganiGram and Horizons Marijuana Life Sciences Index ETF have recovered much of what they lost during a recent correction. 

The enthusiasm comes despite questions about how profitable these companies can become under legalization, a potential that has led to extremely high valuations in the sector. That has led to intense interest in the stocks from short-sellers. IHS Markit says $2.5-billion (U.S.) in cannabis stocks are being shorted as of Monday, the highest level it has recorded. 

Short-sellers have significant short positions in Canopy, Aurora Cannabis, Aphria, Auxly Cannabis Group, Medmen Enterprises and Delta 9 Cannabis. All but Aurora just cracked the lists of stocks that have a high proportion of shares outstanding sold short. 

Nonetheless, sentiment for pot stocks is heating up again, with investors choosing to buy in at the beginning of what they see as a monster trend.

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