Buds & Duds: Cannabis stocks plummet Tuesday ahead of Canada legalization

Source: Proactive Investors : Katie Lewis

Cannabis stocks perked up Monday, on the back of news that recreational marijuana will be legalized in Canada in two days

Tick tock, tick tock — one day to go before recreational cannabis becomes legal in Canada.

In short: the market has responded, with a broad drop in the sector across the board on Tuesday Morning

Shares of Tilray Inc (NASDAQ:TLRY) dropped Tuesday following weeks of volatility. Shares have experienced multiple double-digit percentage swings, both up and down. Shares dropped 3.6% at US$159.64 Tuesday mid-day. Tilray did not announce any significant news or give any sense why the stock was moving so much. 

READ: Feud between Namaste Technologies and short-seller Andrew Left of Citron Research escalates

Namaste Technologies Inc (CVE:N) (OTCQB:NXTTF) also rocketed higher Monday, up 22.8% in New York but dropped 3.5% on Tuesday Morning. The stock has been under pressure in recent weeks after Citron Research released a report about the company. 

Shares of Namaste were down 5.0% at C$2.68 in Toronto and down 3.5% to US$2.10 in New York.

Shares of The Green Organic Dutchman Holdings Ltd (TSE:TGOD) (OTCQX:TGODF) fell Tuesday down 3.2% to US$5.50. The company recently launched its organic cannabis brand.

MariMed Inc (OTCQB:MRMD) dropped 2.9% at US$4.72 Monday. The company develops, owns and manages cannabis facilities as well as branded product lines. The stock has fallen drastically in the last week, falling from US$5.63 to US$3.66.

READ: Pot primer: Your guide to legalized cannabis in Canada

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada rose 1.25% to US$346.56 on Tuesday. 

The Horizons Marijuana Life Sciences Exchange Traded Fund, a group of marijuana stocks that trades on the Toronto Stock Exchange, was down 1.61% at C$25.63 on Tuesday morning. 

--Updates share prices--

Contact Katie Lewis at katie@proactiveinvestors.com

Follow her on Twitter: @kelewis