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Cannabis Stocks Surge on US Health Officials' Recommendation for Marijuana Scheduling

Strategic Insights

— 1 min read

US health officials' recommendation to reschedule marijuana as a lower-risk drug has sent cannabis stocks soaring, with Canopy Growth Corporation shares adding almost 50% on Monday morning. The Secure and Fair Enforcement (SAFE) Banking Act, which would remove penalties for companies providing banking services to legitimate cannabis-related businesses, could also be progressed in the next six weeks. This news has sparked significant gains across the cannabis sector, with Aurora Cannabis Inc, Curaleaf Hldgs Inc, and Tilray Inc among those seeing substantial increases in their share prices.

Key Takeaways:

  • Canopy Growth Corporation shares have added almost 50% on Monday morning, reaching a price of US$1.37.
  • Aurora Cannabis Inc saw its shares increase by 50% to US$0.79, while Curaleaf Hldgs Inc was up 11.1% and Cresco Labs Inc up 10.1%.
  • The Secure and Fair Enforcement (SAFE) Banking Act could be progressed in the next six weeks, potentially paving the way for cannabis-related businesses to access banking services.
  • Senate Banking Committee chair Sherrod Brown has indicated that he plans to push for key bills, including cannabis banking reform, this fall.
  • The recommendation from the Department of Health and Human Services (HHS) to the Drug Enforcement Administration (DEA) has been described as a "game-changer" for the cannabis industry.

Statistics:

  • Canopy Growth Corporation shares have increased by 46.1% to US$1.37.
  • Aurora Cannabis Inc shares have increased by 50% to US$0.79.
  • Curaleaf Hldgs Inc shares have increased by 11.1%.
  • Cresco Labs Inc shares have increased by 10.1%.
  • Tilray Inc shares have increased by 9.6%.
  • Trulieve Cannabis Corp shares have increased by 7.1%.
  • Green Thumb Industries Inc shares have increased by 6.9%.
  • Jushi Holdings Inc shares have increased by 4.5%.

Sources:

  • Department of Health and Human Services (HHS)
  • Drug Enforcement Administration (DEA)
  • Canopy Growth Corporation (TSX:WEED, NYSE:CGC)
  • Aurora Cannabis Inc (TSX:ACB, NASDAQ:ACB)
  • Curaleaf Hldgs Inc (CSE:CURA, OTCQX:CURLF)
  • Cresco Labs Inc (CSE:CL, OTCQX:CRLBF)
  • Tilray Inc (NASDAQ:TLRY)
  • Trulieve Cannabis Corp (CSE:TRUL)
  • Green Thumb Industries Inc (CSE:GTII, OTCQX:GTBIF)
  • Jushi Holdings Inc (CSE:JUSH, OTCQX:JUSHF)
  • PunchBowl News
  • Senate Banking Committee chair Sherrod Brown (Democrat-Ohio)

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