While the raids on several Cannabis Culture outlets yesterday was bad news for both common sense and the craft cannabis industry, it was good news for licensed MMJ producers and their investors.

Publicly-traded LPs recently saw their market value drop dramatically after two class-action lawsuits were launched and comments from cannabis czar Bill Blair about there being no rush to implement legalization of recreational, but stock rebounded Thursday following news of raids at several Cannabis Culture outlets.

Shares of Canopy Growth Corp. closed nearly six per cent higher at $11.07, Aphria Inc. was up six per cent to close at $6.67 and Aurora Cannabis Inc. rose six per cent to close at $2.41 Thursday on the Toronto Stock Exchange.

A likely explanation is investors saw this as the federal government clearly signaling that certain types of cannabis businesses will be allowed in a legalized system and others will not.

A task force report has recommended storefront locations be allowed in addition to the current mail-order system for medical cannabis patients and pointed out that a majority of people who participated in the consultation process want to see a distribution system that includes dispensaries, which are currently illegal.