Cannabis producer Canopy Growth jumps after saying it's teaming up with Martha Stewart

Canopy Growth

Canopy Growth spiked more than 3% Thursday morning after the cannabis producer announced Martha Stewart was joining the company in an advisory role, helping to develop a new line of product offerings for CBD and other cannabinoids’ uses for both humans and animals.

Rivals Cronos(+2.1%) and Tilray(1.6%) were trading higher following the news.

“Martha is one of a kind and I am so excited to be able to work alongside this icon to sharpen our CBD product offerings across categories from human to animal,” Canopy CEO Bruce Linton said in a press release announcing the collaboration.

Thursday’s announcement comes days after one Wall Street shop said it thinks the $US1 billion CBD market will explode to $US16 billion by 2025.

“By 2025, we believe CBD offerings could conservatively generate $US16 bn in retail sales (assuming a ~40% increase in consumer incidence, to 10%, and spend of less than $US2 / day),” Cowen analysts Eric Assaraf and Viven Azer said.

Thursday’s rally is inflicting more pain on short-sellers in the marijuana space, who have been licking their wounds from a rough February. Through Tuesday, traders betting against marijuana stocks had suffered $US192 million in market-to-market losses this month.

“If losses for cannabis short sellers continue to mount we should see continued short covering and added upward price pressure boosting the profits of a growing community of long shareholders,” Ihor Dusaniwsky, managing director at the firm said in a note out Tuesday.

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