Shares of Eve Sleep Plc (LON: EVE) soared 35.7%, benefitting from the surge in cannabis stocks listed on the LSE despite the company’s lack of announcements.
Investors dug up a press release about Eve Sleep partnering with Sana Lifestyle, a distributor and licensee of CBD (cannabidiol) products issued on 16th February.
The partnership will see Eve Sleep list several CBD products on its website by Q2 2021, which could provide a significant boost to the sleep wellness specialist’s revenues.
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Investors cheered the partnership after Eve Sleep clarified that it had been developing its CBD products that could form part of a bedtime routine over the past 12 months before the partnership with Sana.
The listing of two cannabis companies on the LSE in February has created a frenzy about the cannabis industry. Eve Sleep has benefited significantly from the buzz around this sector.
Investors are waiting patiently for Eve Sleep to announce the first listings of CBD products on its website, which could trigger further stock price gains. The company is expected to list its first cannabis products in Q2.
Eve Sleep has done exceptionally well in the past year, given that it was able to grow its revenues 6% in 2020 to £25.2 million ($34.6 million), driven by 18% sales growth in H2. The company also managed to cut its losses by 81% to £2 million.
Most analysts and investors expect the company to do much better this year, but only time will tell.
Eve Sleep share price.
Eve Sleep shares surged 35.71% to trade at 7.60p, rising from Friday’s closing price of 5.60p.