Cannabis stocks soar again

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Canopy growth (CGC) increased by 6%, Aurora Cannabis (ACB) jumped 25% and Tilray (TLRY) jumped 14% at the start of the session. Other cannabis stocks on the move include global cannabis leaders Curaleaf (CURLF), Aphria (HERE) and Cronos (CRON), which has a big investment from the tobacco giant and owner of Marlboro Altria (MO). Market spikes also follow a larger market rally on Tuesday.
Industry executives have publicly declared their satisfaction with the election outcome. 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 road 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. recent conference call with analysts.

“The results of the voting initiatives clearly show that support for legalizing 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.”

Despite the optimism, the industry faces roadblocks at the federal level, especially if Republicans maintain their Senate majority after the second round in Georgia in January.

A Senate led by Republican Mitch McConnell will mean cannabis legislation will remain dead in the water, even under a Biden administration.

“Mitch McConnell is a one-man ‘no’ machine,” said John Hudak, cannabis policy expert and deputy director of the Brookings Institution. “It’s just something [he] do not like. He does not see the political advantages. ”

This is bad for the industry, as executives say there is an urgent need to address key regulatory gaps for companies operating in state legal systems despite trading in an illegal product at the federal level.

Cannabis rulers say they cannot easily bank or secure traditional financing because they are subject to a 1980s tax law drafted to punish drug traffickers; they find it difficult to insure their businesses; and they are not eligible for federal disaster assistance.

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