This could be the best opportunity for marijuana legalization the industry has ever seen. President Joe Biden recently announced his intention to overhaul the government’s policy on marijuana by pardoning thousands of people who were convicted of simple marijuana possession at the federal level. He also directed the attorney general to review how pot is classified and urged governors to issue state pardons, too.
While Biden did not fully endorse decriminalization, let alone legalization, his announcement gave hope to those who have pushed for it for years that cannabis legalization will finally become a reality. Investors felt the same way as they sent shares of pot stocks soaring.
Cresco Labs shot 24% higher, Canopy Growth jumped 30%, Tilray (TLRY 2.41%) surged 40%, and Jushi Holdings rocketed 49% higher on the announcement. While some like Canopy gave back all of their gains and then some the very next day, many held onto most of their higher valuations even as the stocks continue to trade dramatically below where they started the year.
While legalization won’t come right away, there still remain questions just how helpful it will be to their businesses as federal regulation and taxation could create a challenging labyrinth of red tape to negotiate.
The high cost of selling weed
Marijuana is a Class I controlled dangerous substance nationally, putting it in the same category as heroin and cocaine, and its…