We track short interest for 150 securities with $111 billion of market cap in our Cannabis Portfolio to get an overview into short selling activity in the market. These U.S. and Canadian stocks and ETFs have over $5.1 billion of total short interest, an average short interest % of float of 8.25% and 16.75% average stock loan fee. Weâ€™ve seen increased short selling activity in this sector throughout all of 2019 with 99.5 million of net shares shorted worth $1.40 billion. In July, short selling was a bit muted, with 7.2 million shares of new short selling worth $169.7 million.
Tilray Incâ€™s (TLRY US) stock price is down almost 3% after reporting 4th quarter results which beat analystsâ€™ revenue estimates. 4th quarter EBITDA losses and EPS loss which were more than twice as large as expectations turned an aftermarket rally into a losing day today.
Canopy Growth Corp (CGC US) short interest is $1.29 billion; 26.39 million shares shorted; 11.38% of float; stock borrow is 13.65% bp fee. WEED CN short interest is $355 million; 7.28 million shares shorted; 3.14% of float; stock borrow is 12.40% bp feeÂ Canopy Growth is the Â is the most shorted stock in the Cannabis sector.
The 10 major shorts in the Cannabis sector, which make up over 95% of all shorts in the sector, were down $28 million in mark-to-market losses today, bringing year-to-date losses to $1.02 billion.
The mergers and acquisition activity in the Cannabis Sector continued today with Green Growth Brands Ltd. offering $2.1 billion in a hostile takeover of Aphria Inc (APHA). This follows Altria Incâ€™s announced $1.8 billion investment in Cronos Group (CRON); Constellation Brands purchase of 5.5% of Canopy Growth Corp (CGC); Molson Coors Brewing Coâ€™s joint venture with HEXO Corp (HEXO); and Anheiser-Busch Inbevâ€™s research partnership with Tilray Inc (TJRY).