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03 April
Aurora leads gains for Canadian cannabis stocks after pot trade group beefs up ranks with industry exec
Aurora Cannabis is leading a rally in Canadian cannabis stocks. patricia de melo moreira/Agence France-Presse/Getty Images

Aurora Cannabis Inc. led gains among Canadian cannabis stocks on Wednesday after an industry executive was named president of the Cannabis Council of Canada trade group.

Paul McCarthy, who was formerly head of corporate policy and international implementation at Canopy Growth Corp. CGC, +5.69% WEED, +4.24%, was named president of the Cannabis Council of Canada (C3) on Tuesday.

“We are confident that under his leadership, C3 will continue to be a leading voice in advocating for a thriving and responsible cannabis industry,” said Rick Savone, chair of C3 and senior vice president at Aurora Cannabis, in a statement.

Aurora Cannabis’s shares ACB, +35.86% were up 28% on Wednesday. The stock is trading at its highest levels since September and has risen by 105% in the past month.

Aurora Cannabis did not reply to an email from MarketWatch inquiring about its stock movement.

Elsewhere across the industry, Canopy Growth shares were up 6.3% on Wednesday, bringing their gains for the month to 176%. Tilray Brand Inc. TLRY, +11.62% was climbing 9.1%, OrganiGram Holdings Inc. OGI, +5.88% was up 4.9%, SNDL Inc. SNDL, +14.71% was rising 12.3% and Cronos Group Inc. CRON, +7.74% was gaining 7%.

The C3 development comes on top of tailwinds in the sector as Germany’s decriminalization of pot took effect on Monday.

In the U.S., Florida’s Supreme Court on Monday allowed a recreational-marijuana referendum to be placed on the ballot.

Also this week, Canopy Growth received an endorsement from Institutional Shareholder Services for a shareholder vote that will clear the way for the creation of Canopy USA.

Aurora Cannabis on Monday issued a statement supporting the reforms in Germany.

“These developments offer a distinct opening for Aurora, a leading provider of medical cannabis in Germany, to enhance its established footprint in the country,” Aurora said.

Alliance Global Partners analyst Aaron Grey on March 22 listed Aurora Cannabis, along with Curaleaf Holdings Inc. CURLF, +0.19% and Tilray, as positioned to benefit from cannabis-business growth in Germany due to its international presence.