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MMJ Phytotech Ltd shares plunge almost 10% lower

One of the worst performers on the market today has been the MMJ Phytotech Ltd (ASX: MMJ) share price.

In late afternoon trade the pot stock is down almost 10% to 42 cents.

What happened?

Although MMJ Phytotech released a reasonably positive update on its PTL101 drug, it wasn’t enough to keep day traders from heading to the exits.

A number of pot stocks including Auscann Group Holdings Ltd (ASX: AC8) and MGC Pharmaceuticals Ltd (ASX: MXC) have sunk into the red today as day traders take profit following strong share price increases over the last few weeks.

Australian pot stocks have been on fire recently after positive developments in the Canadian market which saw alcoholic beverage giant Constellation Brands agree to buy a 9.9% stake in Canadian pot stock Canopy Growth Corp for just short of C$250 million.

Traders appear to believe that there could soon be a consolidation of pot stocks around the world.

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