TORONTO — Shares of the venture capital arm of marijuana company Canopy Growth went on a roller coaster ride on its first day of trading on the TSX Venture exchange as an investor craze over cannabis stocks continued.
Canopy Rivers, a subsidiary which pursues investment opportunities in the marijuana sector, closed at $8.75, down more than 18 per cent from its opening price Thursday of $10.75. However, that price marked a nearly 150 per cent increase from the stock's previous close, before Canopy Rivers' reverse takeover of AIM2.
Canopy Rivers began trading Thursday under the ticker symbol "RIV" amid a cannabis stock frenzy as Canada prepares to legalize the drug for recreational use on Oct. 17. During its trading debut, Canopy Rivers surged as high as $11.82 but slipped as low as $7.60.
Its investment portfolio includes licensed producer Agripharm and Solo Growth, a retail cannabis distributor.
Canopy Growth's chief executive and acting chief executive of Canopy Rivers Bruce Linton says the subsidiary allows the Smiths Falls, Ont.-based cannabis company to grow its lead in the industry.
"Canopy Rivers presents a world of opportunity for its partners and for Canopy Growth... Whether it’s access to new brands, new technologies, differentiated products, first rights to future financing opportunities, and even rights to future full acquisition, Rivers will build value for shareholders," he said in a statement.
Its listing comes one day after shares of Nanaimo, B.C.-based Tilray went on a wild ride, surging more than 90 per cent before briefly dropping into negative territory and then rebounding to close up roughly 38 per cent, at more than US$214. A day earlier, Tilray's stock saw a 30 per cent jump as well.
Tilray, which completed its initial public offering on the Nasdaq in July with shares priced at US$17, earlier this week said it got approval to export medical cannabis to the U.S. for a clinical trial.
On Thursday, however, its shares took a breather, closing at US$172.16, down nearly 20 per cent from its opening price. Still, at that price Tilray's market capitalization of US$16 billion not only surpassed the US$11.8 billion market cap of Canopy Growth, but also brewing company Molson Coors and Mexican fast food chain Chipotle.
Armina Ligaya, The Canadian Press