US Set To Legalise Marijuana Nationwide
Marijuana companies start increasing in their profits and shares on Thursday after the United States congressional committee passed legislation to decriminalise cannabis, taking it a step closer to being approved by the Democratic-controlled House of Representatives.
The bill, which was passed 24 to 10 in the House Judiciary Committee on Wednesday, sent shares of Canopy Growth (WEED.TO), Aurora Cannabis (ACB.TO), Aphria Inc (APHA.TO) and Tilray Inc (TLRY.O) up between eight percent and 15 percent, Reuters reports.
“We think federal legalization would be a big positive for investor sentiment surrounding cannabis equities, which have been battered by oversupply and a steep price decline for the underlying commodity since becoming legal in Canada,” said Garrett Nelson, senior equity analyst at CFRA Research.
Banks may now do business or provide services to cannabis companies in places they are legal.