Cannabis stocks started the week with a bang, after a busy 4/20 weekend.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, was up 1.7% to 299.16 by on Monday midday. The Horizons Marijuana Life Sciences Index ETF was up 2.1% at C$20.61.
FSD Pharma Inc (CSE:HUGE) (OTCMKTS:FSDDF) announced Monday that it had hit a key milestone after its subsidary FV Pharma received its sales license to supply and sell cannabis products. The license, granted by Health Canada, went into effect on April 18, 2019.
Shares of FSD soared, up 20% at C$0.27 in Toronto, up 15% at US$0.20 in New York.
The Toronto-based company plans to ramp up production at its current facility in Cobourg, Ontario while continuing to build out the plant to add additional grow capacity.
The terms allow the current FSD facility to supply and sell cannabis products, while an amended sales license, expected in the near future, will include the sale of dried and fresh cannabis flower.
The sales license also allows FSD’s partner Canntab Therapeutics (CSE:PILL) to begin sales of its cannabis oral dose delivery platforms, including CBD and THC capsules, in Canada and internationally.
Shares of Canntab were also up on Monday, up 1.3% at C$0.76 in Toronto.
“We expect that this will provide an immediate benefit to both parties, since FSD is entitled to a share of Canntab’s revenue from sales as a result of the collaboration and profit sharing agreement that we entered into this past fall,” said FSD founder and president Zeeshan Saeed.