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NEW YORK: Shares of major U.S.-listed cannabis producers spiked on Thursday (October 8) after Democratic vice presidential candidate Kamala Harris said marijuana would be decriminalized at the federal level in the United States under the Biden administration.
During Wednesday night’s debate with Vice President Mike Pence, Harris said that she and Democratic presidential candidate Joe Biden would also expunge the criminal records of people convicted of marijuana-related crimes in the past.
Cannabis stock tracker MJ ETF was up 5.5% to mark its best session since early June, while Tilray Inc was up 19.2% on the Nasdaq. US stocks of Canopy Growth Corp, Aphria Inc and Aurora Cannabis Inc closed 10-13% higher.
Although many US states have legalized the use of marijuana, banks and other traditional financial institutions have so far refused to work with the industry as cannabis remains a federally classified substance.
“Access to secure banking will transform the industry, freeing up capital markets for investment and reducing the risk of operating a cannabis business,” said Keith Cich, co-founder of cannabis-related products maker Sunderstorm Inc.
Regulatory problems have also restricted the availability of cash for nascent sector companies at a time when they struggle with a lack of profitability due to high costs.
“From a business perspective, (decriminalization) will level the playing field by allowing companies to spend normal operating costs instead of paying taxes on gross profits,” said Sam Armenia, vice president of producer C21 Investments Inc.
Harris, who has supported the decriminalization of cannabis even before Biden chose her as his running mate, is the lead sponsor of the Marijuana Opportunity, Reinvestment and Elimination Act (MORE) of 2019, which sought to end prohibition. federal marijuana.
