The Cann Group Ltd (ASX: CAN) share price has started the week on an incredibly positive note.
At the time of writing the cannabis company's shares are the best performers on the All Ordinaries index. In afternoon trade they are up a massive 29% to 67 cents.
But it isn't just Cann Group which is hurtling higher today. A number of cannabis shares are smoking the market on Monday.
For example, the second-best performer on the index today is the AusCann Group Holdings Ltd (ASX: AC8) share price with a gain of 15% to 27 cents.
Elsewhere, the Althea Group Holdings Ltd (ASX: AGH) share price is up 13% to 39 cents.
Why are cannabis shares racing higher?
Today's news appears to be down to speculation that global beverage giant Coca-Cola is planning to launch a new range of drinks in Canada containing CBD.
Investors appear to believe that such a move could start a global trend and drive strong demand for cannabis.
Speculation started after a child-proof Coca-Cola can was featured in a since deleted video on YouTube. The YouTuber claims that his father is a head engineer for a company producing bottling and capping machines for food companies.
However, Coca Cola has denied that it is planning to launch such a product range.
It released a statement to Bloomberg stating that "These rumors are untrue. As we have stated many times, we have no plans to enter the CBD market."
Cannabis giant and Cann Group partner, Aurora Cannabis, did not respond to inquiries from Bloomberg about a possible partnership with Coca-Cola.
Given Cann Group's close ties and offtake arrangements with Aurora, such a partnership has the potential to be a major positive. Especially at a time when there are concerns that Cann Group may struggle to offload its supply given weaker demand and an oversupply of cannabis dry flower.
