U.S.-listed shares of Canadian cannabis companies rallied anew Wednesday, as analysts cheered the latest link-ups in the sector and remained bullish on a market expected to grow quickly once Canada fully legalizes the substance on Oct. 17.
Cronos Group Inc. CRON, +14.89% led the charge, climbing another 7% to put its one-month gain at 103%. The Toronto-based company climbed about 13% on Tuesday, after it announced what it called a “landmark partnership” with Boston biotech Ginkgo Bioworks Inc. that will seek to produce specific cannabinoids at scale.
Cannabinoids are specific molecules in marijuana that can produce effects in the human body, with the most commonly known subclasses being Tetrahydrocannabinol, or THC, and cannabidiol, or CBD. Cronois has pledged to fund about $22 million in research and development and issue up to 14.7 million shares to Ginkgo if the partnership meets certain milestones