Marijuana stocks are surging after Canada legalizes the drug
Marijuana stocks are surging after Canada became the second country in the world to legalize the drug.
The Canadian Marijuana Index was up 3.34% as of 10:45 a.m.
Marijuana stocks surged Wednesday morning after Canada legalized the drug.
The Canadian Marijuana Index, an aggregate measurement of all publicly-listed marijuana stocks in Canada, was up 3.34% as of 10:45 a.m. on Wednesday. The overall North American index, which includes US stocks, was up 2.28%.
Golden Leaf Holdings, a Canadian Securities Exchange-listed cannabis company, was the biggest gainer with the stock surging 6.81%.
Overall, legalized marijuana is expected to be a boon for Canada's economy. CIBC, one of the country's largest banks, predicts Canada's legal marijuana market will be a $6.5 billion industry by 2020.
A number of Canadian marijuana firms, including Aurora Cannabis and Canopy Growth Corp are seeing a wave of investor excitement around marijuana legalization. Marijuana companies are capitalizing on all that liquidity to go on acquisition sprees.
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