Marijuana stocks up after Ontario announces cannabis supply agreements
Ontario has inked a cannabis supply deal with large suppliers, smaller players
Some marijuana sector stocks are up slightly after Ontario announced supply agreements with 26 licensed producers in preparation for legalization of recreational pot this fall.
Smaller producers which signed initial agreements with the Ontario Cannabis Store, which will be selling pot online starting on Oct. 17, saw bigger lifts in the volatile sector.
Shares of licensed producer Beleave Inc. were up roughly 16 per cent to $1.55 in Toronto while Newstrike Brands Ltd.'s stock was up more than 21 per cent to $0.67.
Ontario announced late Monday that it had signed agreements with 26 licensed producers such as Canopy Growth Corp., Aurora Cannabis and Aphria Inc. as well as smaller players including Starseed Medicinal Inc. and Solace Health Inc.
Sales of recreational cannabis on Oct. 17 will only be available through the OCS' online retail channel initially until the province establishes a wholesale distribution network to supply pot to legal private stores by April 2019.
The Progressive Conservative government's new plan to have cannabis sold through a private retail model is a contrast the Liberals' plan for a provincial government monopoly on cannabis sales.