[THIS IS A DEVELOPING STORY]
Due to a highly correlated sell-off of Canadian licensed producers, the Investment Industry Regulatory Organization of Canada, a.k.a. IIROC, initially announced that shares of Canopy Weed Corp. (TSX:WEED) (OTC:TWMJF) were halted as of 12:18:35 PM EST, and Aphria Inc. (TSX:APH) (OTC:APHQF) were halted as of 12:19:18 PM EST due to single-stock circuit breakers.
Both companies shares were down measurably in intraday trading at the time of the halts. Following these initial halts, additional L.P. halts ensued.
Check here for updated trading resumptions.
Why So Much Correlation?
One contributing factor to the increased correlation of major cannabis stocks is the recently launched cannabis-themed ETF, called the ETFMG Alternative Harvest ETF (NYSE:MJX). Canopy, Cronos, Aurora and MedReleaf are all in the top-5 holdings of the fund.
Why Were they Halted?
IIROC can make a decision to impose a temporary suspension of trading in a security of a publicly-listed company. Trading halts are implemented to ensure a fair and orderly market. IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.
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