Campaigning on marijuana
One of the most exciting developments taking place in the cannabis industry is the US 2020 presidential race. Several candidates including Bernie Sanders, Cory Booker, and Kamla Harris have been proponents of legalizing marijuana in the US (MJ). The hope is to appeal to more voters, a page taken from Canadian Prime Minister Justin Trudeau’s campaign back in 2015.
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Joe Biden enters
However, not all candidates see the legalization of marijuana as a good thing. On April 25, former Vice President Joe Biden announced his bid for the 2020 race. Joe Biden has long opposed marijuana legalization, and the likelihood of a change in his stance appears slim. One report suggested that Joe Biden’s policy has negatively impacted the war on drugs. Recently, at an opioid epidemic forum, Joe Biden appeared to support the anti-marijuana camp.
Biden’s stance may put a dampener on cannabis companies such as Canopy Growth (WEED), Aurora Cannabis (ACB), Tilray (TLRY), Cronos Group (CRON), and others that may have set their sights on the US market for mainstream cannabis. Nonetheless, these companies can still participate in the hemp market, as it was legalized last year through the farm bill.
For example, just last month, Canopy Growth announced that it acquired AgriNextUSA, a company that conducts its business in the hemp segment. With this acquisition, Canopy Growth aims to reach deeper into the US market, which recently legalized hemp farming at the federal level.
Canopy Growth also has another hemp subsidiary called ebbu in the US. Currently, ebbu develops cannabis-based products.