Cannabis stocks skyrocket thanks to Biden victory, legalization hopes and solid results

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Canopy growth (CGC) jumped 10% and Cannabis Aurora (ACB) jumped 20% after both reported better than expected sales and reduced losses. Tilray (TLRY), which will report its results after the closing bell on Monday, was also up 10%.
Other cannabis stocks on the rise on Monday include the world’s leading cannabis company Curaleaf (CURLF), Aphria (HERE) and Cronos (CRON), which has a big investment from the tobacco giant and owner of Marlboro Altria (MO).
Industry leaders are clearly pleased with the election results at the federal and state levels. Canopy CEO, who is financially supported by Corona owner Constellation marks (STZ), was particularly optimistic about what changes in the political landscape might mean for the industry.

“We believe Biden’s victory is an important step on the path to federal authorization of cannabis in the US market through decriminalization and the withdrawal of schedules,” David Klein, CEO of Canopy, said in a statement. conference call with analysts.

“The results of the voting initiatives clearly show that support for the legalization of marijuana for adult use extends across geographic and partisan boundaries and is supported by a majority of Americans. Legal marijuana is on the rise. to become the American standard, ”he added. “This will likely increase the pressure on Congress to pass major federal marijuana reform in the very near future.”

Aurora CEO Miguel Martin also appeared optimistic about the possibility of further changes to federal law in the United States.

“Biden-Harris’ position is clear … I think we’re going to have to be a little more articulate about the timing,” Martin said, noting that the second round of the election to decide the race for the two seats in the Senate in Georgia, which could determine which party has control, will have a big impact on what happens next at the federal level.
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But Martin noted that the positive news from the state’s legalization adds to growing expectations that the United States will join other countries that have recently decriminalized cannabis.

“What we’re seeing in the US and around the world is a kind of growing openness to THC-containing cannabinoids and that bodes well for a company like Aurora,” Martin said.

Cannabis leaders are also hoping to launch more products in the United States that do not contain THC, the psychoactive component of cannabis.

Canopy, for example, last week unveiled in Canada a new line of drinks containing cannabidiol (CBD), a part of the hemp plant that does not produce an effect. The brand, dubbed Quatreau, could be introduced in several U.S. states in 2021, the company said.

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