Newstrike Resources Ltd. (TSXV:HIP), a producer of medical cannabis, is, at the time of writing, the highest traded stock on the TSX Venture Exchange according to Investors Hub, The company currently has 21,365 stock trades. In fact, of the top ten ranking companies for trades on the TSX Venture Exchange, the top nine of those are cannabis companies. (The number 10 spot is currently going to HIVE Blockchain Technologies Ltd. (TSXV:HIVE) with 1,725 stock trades.)

The number of stock trades for Newstrike far outranks the second-highest trading company on the TSX Venture Exchange, which is Emerald Health Therapeutics (TSXV:EMH), currently with 5,606 stock trades. Given the 15,759 difference, the likelihood that Newstrike will be stripped of its number one placement by the end of the day is slim, but I suppose stranger things have happened.

Cannabis stocks also doing well on the CSE >>

Newstrike may be a high trader today, but many of the trades appear to be sells, given that the stock is currently trading in the red at $1.86, which puts it down $0.33, or 15.07%, compared to the previous closing price of $2.19. So far, the day’s range has gone between $1.80 and $2.63, compared to a 52-week range of a low of $0.13 and a high of $3.30. Until today, the stock had been trading up for the past five trading days.

So, what happened today? What’s made Newstrike so unpopular with investors that it made the stock so popular to trade?

The mass exodus of trading could be related to ongoing discussions with Aurora Cannabis Inc. (TSX:ACB). Aurora has been avidly after CanniMed Therapeutics Inc. (TSX:CMED). So far, CanniMed has been resisting what it believes to be a “hostile takeover” by Aurora. CanniMed itself has been in discussions with Newstrike for CanniMed to takeover Newstrike, meaning that Aurora now needs to adjust its plans if it wishes to overtake both the smaller companies.

Read more about the Aurora proposed takeover of CanniMed >>

Discussions of this potential three-way takeover have been postponed to January 25 (they were originally supposed to happen today). If the merger were to take place, then the merged company would become the biggest cannabis company in Canada by market cap.

It’s possible that the delayed resolutions have frustrated Newstrike investors, enough to make them want to sell Newstrike stock. Perhaps they feel the delay is an indication that the merger won’t happen at all.

Newstrike trading was also halted by the IIROC at 9:57 am EST. It was promptly resumed at 10:02 am EST. This temporary halt in trading may have also been a cause for the selloff of Newstrike stock.

The other top traded companies on the TSX Venture Exchange include:

1. Newstrike Resources Ltd: medical cannabis producer; 21,365 trades; down 15.07%
2. Emerald Health Therapeutics: cannabis producer; 5,606 trades; up 9.71%
3. Abcann Global Corporation (TSXV:ABCN) : medical cannabis producer; 4,260 trades; up 12.50%
4. The Hydropothecary Corp. (TSXV:THCX): medical cannabis producer; 4,152 trades; up 2.85%
5. Cronos Group (TSXV:MJN): medical cannabis producer; 3,773 trades; up 6.61%
6. Cannabis Wheaton Income Corp. (TSXV:CBW): cannabis investor company; 3,194 trades; up 2.30%
7. Organigram Holdings Inc. (TSXV:OGI): medical cannabis producer; 2,710 trades; up 3.32%
8. The Supreme Cannabis Company (TSXV:FIRE): medical cannabis producer; 2,432 trades; down 1.85%
9. Harvest One Cannabis (TSXV:HVST): cannabis producer; 1,831 trades; down 1.59%

So, really, of the top nine traded companies on the TSX Venture Exchange, six of the cannabis companies are trading up on the market today.

Featured image: briandcolwell