uploads///herb _

Canopy Growth Remains Cautious about Development in the US

By

Jun. 3 2019, Published 3:22 p.m. ET

Getting more open

While the progress of legalizing cannabis has been slow in the United States, there are signs that the country has become more open to the idea than before. With the advancement of the SAFE Banking Act of 2019 by the House Financial Services Committee in April, things appeared positive. Last year, the United States passed the farm bill, which legalized hemp at the federal level.

Article continues below advertisement

Canopy Growth isn’t optimistic in the near term

Canopy Growth (WEED) recently announced a deal to acquire Acreage Holdings (ACRGF) provided that the United States legalizes cannabis at the federal level. The contingency-based nature of the deal’s structure suggests the uncertainty that exists about legalization in the United States.

In a recent interview with The Street, Canopy Growth’s CEO stated, “We have nothing in over the next 24 months that requires input from the U.S.”

While some of the United States states have fully legalized cannabis, the country still prevents cannabis companies such as Canopy Growth and Aurora Cannabis (ACB) from operating in those states due to the federal hurdle, which has created an issue for the states that have legalized cannabis.

However, this issue is being addressed. In April, Senator Cory Gardner reintroduced the Strengthening the Tenth Amendment Through Entrusting States Act to the Senate. The bill seeks to amend the Controlled Substances Act and certain provisions related to marijuana so that each state will have the right to determine how to regulate marijuana without interference from federal authorities.

In the first half of the day, cannabis stocks were mostly down. Canopy Growth (WEED) was down 1.5%, Cronos (CRON) was down 2.7%, Aphria (APHA) was down 2.1%, and Aurora Cannabis (ACB) was down 2%.

Advertisement

More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market RealistLogo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.