Cannabis company stock surges after winning POT symbol

The company won a random lottery to use the catchy stock ticker

Mature cannabis plants are shown in Fenwick, Ontario on June 26, 2018. (THE CANADIAN PRESS/ Tijana Martin)

The winner of the POT stock ticker lottery may already be benefiting from the buzz around its new symbol as shares of cannabis company Weekend Unlimited Inc. surged by as much as 70 per cent in the wake of its win.

Shares of Weekend, which trades as YOLO, soared as high as $0.20 on the Canadian Securities Exchange on Friday, marking a big jump from its previous close of $0.115.

By midday, its stock was trading at $0.195, up roughly 70 per cent from the previous day.

READ MORE: Undisclosed company wins POT stock ticker lottery, says TMX Group

The stock surge on Friday comes as Weekend announced it was selected out of 40 interested parties in a random lottery conducted by several exchanges for the right to use the catchy symbol. The company, which has a suite of cannabis-focused brands and operations in Canada and in U.S. states where legal, plans to do the moniker changeover on Monday, subject to CSE confirmation.

The win was a “wonderful surprise” and hopefully will boost the small company’s profile, said Weekend’s chief executive Paul Chu.

“I’ve never won the lottery, so this is a first… This is our lucky day,” he said.

The lottery was held by the Toronto Stock Exchange, TSX Venture Exchange, along with the Canadian Securities Exchange and the Aequitas NEO Exchange, due to “significant demand” for the ticker.

POT became available after Potash Corp. merged with Agrium Inc. in early 2018 to become Nutrien Ltd., which now trades under NTR.

Weekend has a relatively small market value of $43.57 million, as of midday Friday at $0.195 per share. That’s up significantly from $28.6 million a day earlier, based on Thursday’s closing price of $0.115. For comparison, licensed producer Canopy Growth Corp. has a market capitalization of roughly $22 billion.

RELATED: Average price of cannabis in Canada goes up 17% post-legalization

RELATED: Cannabis sales up 25% in November as overall retail sales fall 0.9%

Weekend began trading on the CSE in October after a reverse takeover. It sells products to dispensaries in the U.S. but is also in the midst of preparing to launch a legal recreational cannabis store in Alberta, Chu said.

Several pot industry companies hold memorable symbols. Canopy changed its symbol from CGC to WEED on the TSX in 2017. Newstrike Brands Limited, a cannabis producer partly owned by rock band The Tragically Hip, trades as HIP on the TSX Venture Exchange. Licensed producer Invictus MD Strategies Corp. brought in Kiss bassist Gene Simmons as its chief evangelist officer and trades as GENE on the CSE.

These symbols are certainly easier to remember, but a study published in the Journal of Financial Markets in 2016 found stocks do benefit from the likability or pronounceability of a stock ticker. The researchers found that the ratings of tickers that were rated as likable or more easier to say were positively-related to the stock valuation.

Weekend’s ticker YOLO, which stands for “you only live once,” was already easy to remember and pronounce.

However, the phrase may resonate more with younger generations and doesn’t have the broad appeal of POT, Chu said.

“POT really hits home who we are as a company,” he said.

Armina Ligaya, The Canadian Press


Like us on Facebook and follow us on Twitter.

Just Posted

To burn or not to burn?

Vancouver Island authorities take a patchwork approach to wrestling with the issue of woodsmoke

Cruise ships leading culprits in rising greenhouse gas emissions at Ogden Point: report

The GVHA released its Emissions Inventory Report just days after City asks for restrictions

Guardians leaving parks on Vancouver Island’s south coast for good

Juan de Fuca Park Watch folds due, in part, to people not carrying cash any more

Vancouver Island’s West Coast going wild about cycling

Ongoing project will tie Tofino and Ucluelet together with a paved cycling trail

Vancouver Island mom says proper support lacking for dyslexics

October is International Dyslexia Awareness month

YouTube video of Revelstoke grizzly bear goes viral

Why did the grizzly bear cross the railway tracks?

Woman charged with numerous drug offenses stemming from a raid earlier this year at Island property

Police make arrest on an outstanding warrant dating back to January

Victoria to protect any tree that is a foot thick or more

City poised to protect trees with a circumference to 30 cm or more

Winter preparation underway for mid-Island highways

Drivers reminded to ready vehicles for changing conditions

Downtown Victoria tea shop switches to plastic tea bags

Murchie’s Tea and Coffee says the transition is temporary

Talk ‘Dirty Money’ in BC casinos with the man who knows

‘This is an evolving study’: Dr. Peter German presenting up-to-date information on organized crime

Vancouver Island RCMP bust seizes $50,000 worth of drugs

More than 300 grams of cocaine and crack-cocaine seized in Victoria

ELECTION 2019: Have Justin Trudeau’s Liberals really cut middle-class taxes?

Conservative Andrew Scheer vows to cut bottom bracket, NDP’s Jagmeet Singh targets wealth tax

B.C. RCMP officer suing the force for malicious prosecution

Cpl. Tammy Hollingsworth cleared of wrongdoing after misconduct hearing

Most Read