Overnight, US President Biden took executive action to change the US’s marijuana policy, pardoning all prior federal offences of simple marijuana possession.
US-listed pot stocks like Tilray Brands and Canopy Growth Corp rose more than 20% on the news.
ASX pot stocks were similarly bid up:
Creso Pharma [ASX:CPH] was up more than 25% in late Friday trade.
Althea Group Holdings [ASX:AGH] was up 17%.
Incannex Healthcare [ASX:IHL] was up 10%.
Cann Group [ASX:CAN] was up 11%.
Little Green Pharma [ASX:LGP], who recently signed a new agreement with a large German medicinal cannabis company, was up 9%.
Source: Trading View
Pot stock revival?
Yesterday was a big day for US marijuana cultivators and merchants.
President Joe Biden surprised many with his move to overhaul the US’s marijuana enforcement policies.
Biden declared all prior federal offences of marijuana possession would be pardoned henceforth.
That is, all prior ‘simple’ marijuana possession would be pardoned.
Unsurprisingly, pot stocks in the US have been surging.
Tilray Brands, a popular US-listed stock, leapt 31% while rival Canopy Growth jumped 22%.
‘Today represents action from the Administration that we have been waiting for – an acknowledgement that cannabis prohibition has failed and that too many lives have been significantly impacted as a result’, stated Canopy’s Vice President of Government Relations, David Culver.
Biden expressed his belief that no one should be put in jail ‘just for using or possessing marijuana’, pointing out it’s already legal in several US states.
The US president spoke of a three-step approach to breaking down marijuana-related societal barriers.
First, with the pardon, second; for all states to remove marijuana-possession offences, and third; to remove marijuana from the listing of ‘Schedule 1 Substance’ (the same tier as heroin and LSD and higher than fentanyl and methamphetamine).
Having said that, the US president maintains certain laws such as limitations surrounding trafficking, marketing, and underage sales must remain in place:
‘Too many lives have been upended because of our failed approach to marijuana. It’s time that we right these wrongs’
Pot stocks: are they set to boom?
In 2018, Canada became the second country in the world (after Uruguay) to legalise recreational cannabis.
As a result, marijuana-related company stocks exploded, backed by huge support from retail investors.
As legal market openings began to wind down, so did the interest of investors.
Could we be glimpsing the beginnings of another boom in the cannabis industry?
Does this mean new opportunities are on their way?
And what will Australia’s next regulatory move be regarding cannabis?
It may be worth keeping a watchful eye on the cannabis industry.
Hyper-bitcoinisation and the march to US$1 million
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Regards,
Kiryll Prakapenka,
For Money Morning
