Shares of marijuana producer Cronos Group were soaring this week despite not having a particular reason for doing so.
The stock exploded in after-hours trading on Wednesday for gains as high as 41.5% before retracing to a 33% gain.
On Thursday the stock closed up nearly 6% as well.
On Wednesday there had been two block trades that totaled around 1.2 million shares which were crossed at 5:09 p.m. Eastern time at a price of $8.40 a share.
If the shares hold on to the gains, the late Wednesday move will be the second largest in the company’s history and the largest since the company began trading on the Nasdaq.
The company also announced AUD$20 million initial public offering of Cronos Australia Limited. Under the offering, Cronos Australia is expected to issue 40 million new shares at an offering price of AUD$0.50 per share ahead of its planned listing on the Australian Securities Exchange in November.
Mike Gorenstein, Cronos Group’s Chairman, President and Chief Executive Officer, said, “We are excited by this offering, which enables Cronos Group to unlock value for our stakeholders while also continuing to participate in Cronos Australia’s growth as they work to become the market leader for medicinal cannabis in the Asia-Pacific region.”