The Canadian Pot Stock Rush

Dennis Arsenault couldn’t believe what he was seeing. When his company, OrganiGram Inc., made its debut on the TSX Venture Exchange this summer, the shares suddenly shot up.

Such a high valuation didn’t make sense – not even to Mr. Arsenault, and he was the company’s chief executive officer.

Just a few weeks earlier, OrganiGram, an upstart producer of medical marijuana based in Moncton had been valued privately at just over $40-million. But on the open market, speculators feverishly drove up the total value of shares to nearly $120-million in late August.

But the company hadn’t made a dime yet. OrganiGram was probably a year away from pulling in meaningful revenue – and it was already worth nine digits in the stock market.

“I was just shaking my head,” Mr. Arsenault said of that first week of trading.

What happened was exuberant, if irrational, and OrganiGram wasn’t the only company feeling the surge.

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