Canadian pot stocks are on a roll

Canadian pot stocks are on a roll

Canadian pot stocks are on a roll

With October 17 fast approaching, Canadian pot stocks enjoyed their second straight Monday of surging shares this week, Bloomberg reported.

Nanaimo-based Tilray Inc. saw its shares reach a record-high $54.16, shooting up by a significant 23%. Cronos Group also had a similar 30% boost this week.

Toronto’s Aphria Inc. share value grew as much as 20%, while Aurora Cannabis went up by 8.4%.

The strong performances came amid rumours that more liquor companies will be forging alliances with marijuana growers – following news that Guinness beer makers Diageo Plc has been engaged in discussions of possible deals with at least three Canadian cannabis producers.

Read more: Ontario postpones private cannabis sales until April 2019

Industry observers have previously pointed out that legalization will almost certainly inflame demand for Canada’s rental and retail properties.

In particular, both Ontario and Alberta are expected to enjoy generous windfalls from the federal Cannabis Act.

An analysis released earlier this month by RioCan Real Estate Investment Trust said that legalized marijuana – which can drive demand for as much as 200,000 square feet (19,000 square metres) of retail space – is expected to foster a much-increased number of facilities in Ontario, already a preferred provincial market among cannabis producers and sellers.

The herb will also play an important role in the projected sharp decline of Calgary’s vacancy rates in the near future, according to Barclay Street Real Estate.

“We anticipate seeing a marked increase in retail subleases from prospective cannabis vendors whose retail applications have been declined, whether this be for reasons such as market share limits or oversaturation in certain neighbourhoods,” Barclay Street noted, adding that an even more significant vacancy drop may occur once Calgary finalizes its cannabis store approval process.