PARDON ME?
Biden pardons thousands of cannabis possession convictions
In a groundbreaking move for cannabis, President Biden confirmed on Thursday he would be pardoning convictions for simple cannabis possession. CNN highlights that the move represents a fundamental change in America’s response to a drug that has been at the center of a clash between culture and policing for more than a half-century.
What’s more, the President also confirmed he would be initiating the process for his administration to review whether cannabis should still remain in the same category as drugs like heroin.
The pardons will:
- Clear people convicted on federal charges of simple possession since it became a crime in the 1970s
- Affect people who were convicted under District of Columbia drug laws – Not apply to people convicted of selling or distributing cannabis
- Remove obstacles for people trying to get a job, find housing, apply to college or get federal benefits
Biden stated: “Sending people to jail for possessing marijuana has upended too many lives — for conduct that is legal in many states. That’s before you address the clear racial disparities around prosecution and conviction. Today, we begin to right these wrongs.”
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STOCK SURGE
Cannabis stock prices surge after Biden’s announcement
Reuters reports that Shares of U.S.-listed cannabis growers and sellers surged on Thursday after President Joe Biden took executive action to change U.S. policy on the drug.
The publication highlights that shares of Tilray rose by 22%, Canopy Growth rose 31% and ETFMG Alternative Harvest ETF (MJ.P), which includes shares of several cannabis companies, rose almost 20%.
Cannabis shares have not seen such an increase since 2018, when they surged from massive retail investment on the back of Canada’s legalization.
RISE AND FALL
Why did Canopy Growth stock fall 23% in September?
Canopy Growth stock fell 23% in September, but ‘is there a silver lining?’ asks Karen Thomas of The Motely Fool.
The Motley Fool highlights that a number of factors such as pressure on the economy and markets and continued interest rate hikes have exasperated investors’ reluctance to own “risky” assets.
However, Thomas suggests there is still a silver lining, with Canopy Growth stock still looking strong despite the risk. Thomas writes: “Despite very bad sentiment and elevated risk, my view is that Canopy Growth stock is in a better position than ever.”
EU STOCK REVIEW
Akanda becomes second cannabis company in less than 6 months to face possible Nasdaq delisting
Whilst US cannabis stocks have surged following Biden’s announcement to pardon cannabis convictions on Thursday, BusinessCann highlights that the gains are yet to have a major impact on European cannabis stocks. However, it notes that movements are expected over the coming weeks.
The publication reports that some analysts remained skeptical, with Capital Alpha Partners analyst Ian Katz stating that ‘if investors were betting that Biden’s action will lead to legalization of marijuana, they will likely be disappointed.’
BusinessCann reports on the latest developments with European stocks including:
- Akanda has 180 calendar days, or until March 27, 2023, to bring its closing bid price above $1 for a minimum of 10 consecutive business days
- Voyager Life, which joined the Aquis Stock Exchange just over a year ago, has seen its shares return to trading after a temporary suspension last week.
- Tilray saw its stock edge up as it continues to strengthen its position in the European cannabis market
However, despite the low prices, there remains concerns that the public health objectives of legalization will have failed if the industry does not tackle problems such as:
- Monopolized distribution
- Supply chain issues
- Retail and online stores that are operating illegally
