Cannabis Stocks Rise in Hope of U.S. Legalization | Loud Cannabis News
A buying frenzy that lit up the cannabis industry caused tons of Germans to trade in relative cannabis stocks on Thursday. The most traded stock turned out to be Tilray with more than $2.7m turnover, well ahead of heavyweights Volkswagen and Deutsche Bank.
Sundial Growers and Aurora Cannabis also featured among the platform’s winning stocks. Some stocks from the cannabis segment received another boost as third-quarter fiscal 2021 results of Canopy Growth Corporation CGC renewed hopes of legalization of cannabis at the federal-level in the United States. The company stated on its earnings call that it is accelerating its U.S. growth strategy in anticipation of removal of the federal ban on cannabis products in the country.
Cannabis stocks have been gaining momentum since the beginning of 2021 buoyed by hopes of wider legalization and near-term decriminalization as well as the growing adoption of marijuana in more states.
The acquisition-offer for British cannabinoid drug company GW Pharmaceuticals GWPH from U.S.-based Jazz Pharmaceuticals’ JAZZ earlier this month also suggest that there can be relaxation of several restrictions for cannabis industry going forward.
Biden to Legalize Cannabis on Federal Level
Moreover, the Joe Biden-led administration has plans to expedite the legalization of marijuana at the federal level with friendliest political environment for the cannabis industries in U.S. history.
With the truth being simply the fact that early all Americans – 91% to be precise; believe marijuana ought to be legalized for medical use
More Potential Markets on the Horizon
Apart from the United States, other countries are also opening their markets for different varieties of cannabis. Earlier this week, Tilray entered into a new distribution agreement with Grow Pharma, a U.K. medical cannabis distributor.
Some European countries have also legalized medical marijuana, which also represents an additional territory for revenue generation for pot growers. Recreational marijuana may become legal in these markets soon.
Mexico is another country that also allowed pharmaceutical companies to research on medical marijuana, opening avenues for pot growers. We expect industry players to benefit from the growing popularity of the cannabis products.
Delays In South Dakota
South Dakota’s medical cannabis program will not be implemented until next year, Gov. Kristi Noem said Wednesday. One day after a South Dakota judge overturned a voter-approved recreational marijuana amendment, the Republican governor said the MMJ program will not start until July 1, 2022.
Noem said the delay is necessary because she doesn’t have enough time to study the issue before starting a medical marijuana program this year, the Associated Press reported.
Even if the implementation process starts in 2022, it still could be the better part of a year, at the earliest, before MMJ sales begin as it takes companies months to set up facilities and grow cannabis before it’s ready for market.