Trump Administration Sends Canadian Cannabis Stocks Plunging

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Ron Strider

Well-Known Member
Shares of Canadian cannabis companies were in free fall on the stock markets Thursday, after news that the Trump administration may allow crackdowns on marijuana in states where it has been legalized.

According to a report from the Associated Press, U.S. Attorney-General Jeff Sessions is rescinding an Obama-era policy that instructed prosecutors not to pursue federal marijuana charges in states where the herb has been legalized.

From now on, AP reports, it will be up to individual prosecutors to determine whether to pursue charges in states where weed is legal.

Canadian marijuana companies, many of which are eyeing expansion to legal U.S. markets, saw steep stock price drops in the wake of the news.

Canopy Growth, which bills itself as the world's largest legal marijuana producer and trades on the Toronto Stock Exchange under the symbol WEED, saw its stock price fall some 16 per cent as of 11 a.m. ET Thursday.

Shares in MedReleaf Corp. fell by more than 20 per cent, while THC Biomed fell nearly 25 per cent as of 11 a.m. ET.

The Trump administration's decision could sow confusion about the legal status of marijuana in states where voters have called for it to be legal.

Following ballot initiatives in last year's elections, a fifth of U.S. citizens, living in eight states and the District of Columbia, have voted to legalize marijuana for recreational purposes.

Sessions' decision comes days after recreational marijuana became legal in California, the largest jurisdiction yet to legalize the herb.

California expects to see US$1 billion in annual tax revenue from cannabis in the coming years.



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Ian Bastage

420 Product Reviewer
Staff member
Oh my....good chance to sneak on and buy and watch it creep back up.. ...it will creep back up, right?
They all bounced up after an hour (not all the way though). I was slow on the trigger & missed a buy. I blame my meds. :cool027:

The reality is that they are all over-valued & speculative stocks at this point so buyer beware.

Ian
 

Icemud

Member & Nug of the Month July 2012 Member of the
Not sure why that affects Canadian Stocks, as not like they can sell down here legally at this time anyway.
There is a lot of Canadian based capital invested in the US cannabis industry....
 

Icemud

Member & Nug of the Month July 2012 Member of the
Can't wait until three more years.
Why?

The blue party had 8 years to actively remove cannabis from the CSA and they didn't.... the cole memo did nothing and was only a psudo safety blanket to comfort the worries of the business but offered no real protection...what happened yesterday with AG Sessions is a blessing in disguise because it might actually force these legislators off there behinds and get them to actually pass real legislation.

the real protection is the Rohrbacker-blumenthal amendment which is bi-partison.
 

Spitz

Well-Known Member
Agreed Icemud...a part of me actually thinks this is all planned and a calculated move to vilify 1 man and give 100 senators a chance to save face. I’d like to think politics is bigger than that. I fear I’m wrong.
 

TorturedSoul

420 Member of the Month October 2010
Is that Mr. Bankruptcy's tough face, or is he just trying really hard to poop? I hope you'll forgive my confusion, but I can clearly see one of his chief butt-wipers sitting beside him, so...