A marijuana ETF climbed Monday after Canopy Growth (NYSE: CGC) announced it acquired U.S. hemp company, Ebbu, to expand its product line.
The ETFMG Alternative Harvest ETF (NYSEArca: MJ), first U.S.-listed ETF to target the cannabis and marijuana industry, increased 5.8% Monday.
Canopy Growth argued that its acquisition will “complement and accelerate” its ambitions to expand into new types of consumer products, CNBC reports.
CGC shares surged 9.4% Monday on the announcement. Canopy Growth makes up 9.8% of MJ’s underlying portfolio.
“Intellectual property and research and development advancements achieved by Ebbu’s team apply directly to Canopy Growth’s hemp and THC-rich cannabis genetic breeding program and its cannabis-infused beverage capabilities,” Canopy Growth said in a press release.