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

CSS students receive financial boost

Charles and Jean Whittaker Memorial Bursary helps with post-secondary studies

Editor, The Times

Fire departments to continue Breakfast with Santa event

Clearwater Coffee House donates to food bank

Cheque for $308.70 as well as three bags of food raised for the cause

Last weekend on the ice

Featured player of the week: Katie Biagioni

Kidnapped dog sold in Blue River, rescued

Owner excited to reunite with stolen pooch

VIDEO: Rockslide closes Highway 93 in Fairmont Hot Springs

Geotechnical team called in to do an assessment after rocks fell from hoodoos

Illicit drug deaths down, but B.C. coroner says thousands still overdose

Chief coroner Life Lapointe says province’s drug supply remains unpredictable

Trustees ask for more help after tearful meeting on B.C. school’s ‘toxic’ stench

Enforcement has ‘no teeth,’ school trustee says, while kids become sick

One of B.C’s last surviving strip clubs baring all again for Christmas charity

25th annual event is Sunday and raises money for the Maple Ridge-Pitt Meadows Christmas Hamper Society.

University of Victoria researchers develop industry-changing ‘hyper-glue’

‘Cross-linking’ technology already playing a role in performance body armour

Threats to the Fraser River at ‘new zenith,’ says river conservationist

The ‘Heart of the Fraser’ should be deemed ecologically significant according to ORC statement

Grandparents raising children: Shuswap grandma sees need for support

Peer group formed for those who have unexpectedly taken on the role of parenting

Falkland shootout suspect has lengthy criminal record

Williams Lake RCMP issued a warrant for Darwyn Sellars’ arrest on Nov. 4, 2019

Final appeal rejected for man convicted in deaths of missing Alberta seniors

Lyle and Marie McCann were in their 70s when they left their home in St. Albert in 2010 and vanished

Most Read