Pot stocks post second-worst day ever as Tilray tumbles

Finance news

An exchange-traded fund that tracks popular pot stocks fell sharply on Monday, led by shares of Canadian marijuana company Tilray. Traders pointed to profit taking following the legalization of recreational pot in Canada and the end of big conferences earlier in the month.

The ETFMG Alternative Harvest ETF (MJ) dropped more than 9.2 percent, it’s second-worst day ever.

Tilray led the sharp decline in pot stocks, falling more than 15.5 percent. Tilray posted its worst day since Oct. 2, when it dropped 16.25 percent. After the bell the company said it issued $25 million in convertible notes in addition to the $450 million in notes tender earlier in the year.

Toronto-listed Aurora Cannabis and Canopy Growth also contributed to the decline, sliding 12.2 percent and 11.2 percent, respectively.

Pot stocks have recently gained popularity after Tilray CEO Brendan Kennedy told CNBC’s Jim Cramer in September that pharmaceutical companies should partner with cannabis producers as a possible hedge against the space.

The MJ ETF, however, is still up more than 24 percent over the past three months despite Monday’s losses. It is also up more than 9 percent in the past year.