Last week’s wild trading in cannabis stocks apparently hasn’t discouraged investors from jumping into new listings as pot producer Flowr Corp. nearly tripled in its trading debut Wednesday.
Flowr, which was listed on Toronto’s TSX Venture Exchange through a reverse takeover, has the backing of some big names, including gardening giant Scotts Miracle-Gro Co. The companies have teamed up to build a 50,000-square-foot research facility in British Columbia, which will be used by Scotts subsidiary Hawthorne Gardening Co. to test its lights and nutrients on cannabis.
Flowr’s president and co-founder Tom Flow was also a co-founder of MedReleaf Corp., which Aurora Cannabis Inc. bought in July for about US$2.2 billion in stock. He brought several members of the MedReleaf team to Flowr.
Flowr shares surged as high as $7.30 in early trading Wednesday, up 181 per cent from the $2.60 subscription price of an oversubscribed offering that raised $36 million (US$27.7 million) earlier this month. The stock was trading at $6.59 at 10:14 a.m. in Toronto, a gain of 153 per cent.
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