The stock market has been in turmoil for many weeks now due to the economic chaos, and many stocks across sectors have recorded steep declines. The situation has been the same for the cannabis sector, but some companies have emerged as exceptions in recent days, and Village Farms International (TSX:VFF) (NASDAQ:VFF) is one of those.
Over the course of the past two weeks, the VFI stock has gained as much as 100%, and hence, it could be worthwhile for investors to have a closer look at it over the coming days. One of the biggest reasons behind the spike in the VFI stock price is probably the announcement from Statistics Canada that cannabis sales soared during the month of March in the country.
However, that is not all. A recent study has also suggested that certain kinds of cannabis can also be effective when it comes to the prevention of coronavirus infection. Additionally, Bank of America gave the Canopy Growth stock a buy rating, and considering the fact that it is the biggest cannabis company in the industry, the move is being seen as a positive for the entire sector.
That being said, experts believe that the Statistics Canada report is perhaps the biggest trigger that resulted in the remarkable rally in the VFI stock over the past two weeks.
While these triggers have been important factors behind the rally, it should also be noted that on Tuesday, VFI received a major boost itself. Yesterday, the company, along with its partner Emerald Health Therapeutics, announced that their joint venture Pure Sunfarms had received the sales license for a greenhouse.
The greenhouse in question is situated in British Columbia, and the development has come as a major boost for VFF, which is now the larger partner in the venture. The announcement also divulged that Pure Sunfarms would also start manufacturing cannabis derivative products from this summer.