DAVIDsTEA says it's not aware of any reason for swings in its stock amid cannabis mania

Specialty beverage retailer DAVIDsTEA Inc (NASDAQ:DTEA) said there is no company development or information it is aware of for the sharp gyrations of its stock in the market.

“In light of the recent significant increase in the price of its shares and in trading volume, DAVIDsTEA Inc again wishes to confirm that it is not aware of any corporate development or other reason for the recent market activity,” a company statement said on Tuesday.

DAVIDsTEA and New Age Beverages Corp (NASDAQ:BVEA) have been swept up in volatile trading as they were seemingly infected by the frenzy surrounding cannabis stocks ahead of the legalization for medicinal and recreational use of marijuana in Canada this month. 

READ: Cannabis frenzy whipsaws shares of New Age Beverages and DAVIDsTEA despite skimpy news

New Age and DAVIDsTEA both spiked on September 19, exchange data compiled by Proactive Investors showed.

That was the same day when trading in leading Canadian cannabis company Tilray Inc (NASDAQ:TLRY) swung wildly as well when it hit an all-time record of $300 per share.

On October 2, volume in early trade for DAVIDsTEA was at 9 million shares.

For October 3, the statement by DAVIDsTEA appears to have calmed trading in the stock.

Premarket volume was at 260,000 about an hour before trading opens.

Shares of the company had risen 63.14% to end on Tuesday at $4.16. They are trading in the Wednesday premarket down 22.12% at $3.24.

READ: DAVIDsTEA has been steeped in rumors of a possible cannabis-infused beverage

DAVIDsTEA is a retailer of specialty tea, offering a differentiated selection of proprietary loose-leaf teas, pre-packaged teas, tea sachets and tea-related gifts, accessories and food and beverages.

There are 239 company-operated DAVIDsTEA stores throughout Canada and the United States as of August 4, 2018. The company is based in Montréal, Canada.

New Age is the Colorado-based organic and natural beverage company which intends to debut its portfolio of CBD-infused beverages at the upcoming North American Convenience Store show to be held at the Las Vegas Convention Center on October 7 to 10, 2018.

Story by ProactiveInvestors