Wednesday morning, the MORE (Marijuana Opportunity Reinvestment and Expungement) Act was approved by the House Judiciary Committee. Cannabis stocks surged short after the hearing started. Marijuana has been on the controlled substances list for more than 70 years. Listed as a schedule 1 drug alongside heroin, ecstasy and LSD. The MORE Act would remove Marijuana from the controlled substances list.
It will also expunge certain cannabis offences. There will also be subsidies and funding for the communities most affected by the (failed) war on drugs against cannabis consumers. Importantly: doctors will be able to prescribe cannabis to veterans.
The House Judiciary Committee approved the Marijuana Opportunity Reinvestment and Expungement (MORE) Act Wednesday morning in Washington, D.C., voting 24-10 in favor of the bill. Next, the MORE Act will be voted on in the House, where it will likely be passed by the Democratic majority. Normally it should face a tougher battle in the Republican-controlled Senate, where Majority Leader Mitch McConnell opposes marijuana legalization. However, this bill is backed by members from both the Republican party and Democratic party.
“Today’s advancement of the MORE Act marks a significant victory for California cannabis business and consumers,” said Lindsay Robinson, executive director of the California Cannabis Industry Association in a press release.
She continued: “While the MORE Act still leaves unanswered questions for cannabis regulations it is great to see progress on the federal level that gets us closer to ending prohibition and making the cannabis industry more equitable.”
According to BusinessInsider, Marijuana stocks surged right after the hearing started.
Here’s how much cannabis company stocks soared Wednesday as the MORE Act hearing kicked off, from highest to lowest jump in share price:
- Canopy Growth Corp: +17.1%
- Aurora Cannabis: +16.2%
- Hexo: +15%
- Curaleaf: +13.6%
- Tilray: +6%
- Cronos: +5.3%
Canopy Growth Corp., which has fallen about 33% this year, also got a boost from Bank of America Merrill Lynch, which upgraded its rating on the company to “buy” from “hold.” BAML analysts Christopher Carey and Lisa Lewandowski wrote that “the worst is over” for the company in a Wednesday note.
We’ll have to wait and see if it’s finally going to happen. The fact is that 66% of the people are in favour of legalisation. And the fact is that a majority of all Americans already live in a place where medicinal weed is legalized at state level…
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