Cannabis stocks have been buoyed after US President Joe Biden signed into law landmark legislation which would expand marijuana research on Friday.
The bipartisan Medical Marijuana and Cannabidiol Research Expansion Act makes it easier for scientists to study the plant such as by expediting the application process for approval of marijuana-related scientific studies and allowing researchers to grow or import cannabis for medical research purposes.
It instructs the federal Department of Health and Human Services (DHHS) to investigate policies that inhibit cannabis research and make recommendations on how to remove these hurdles. It also instructs the DHHS to study the therapeutic potential of marijuana.
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This comes after Biden requested a review of cannabis’ Schedule I drug status in the Controlled Substances Act in October and amid reports that the Secure and Fair Enforcement (SAFE) Banking Act, which would protect banks and other financial institutions from penalties for providing services to legitimate cannabis-related businesses, may be passed by the end of the year.
US cannabis stocks rose on the news on Monday morning, with Australis Capital Inc (CSE:AUSA, OTCQB:AUSAF) soaring 15%, Planet 13 Holdings Inc (CSE:PLTH, OTCQX:PLNHF) up 5.6%, Jushi Holdings Inc (CSE:JUSH, OTCQX:JUSHF) climbing 6.8%, Delta 9 Cannabis Inc (TSX:DN) up 4.2%, and FSD Pharma Inc (CSE:HUGE, NASDAQ:HUGE) adding 2.8%.
The Valens Company (TSX:VLNS, OTCQX:VLNCF) Inc added 2%, Avicanna Inc (TSX:AVCN, OTCQX:AVCNF) was up 2.7%, Willow Biosciences Inc (TSX:WLLW, OTCQB:CANSF) rose 4%, and Nextleaf Solutions Ltd (CSE:OILS, OTCQB:OILFF) was up 0.8%.
Contact the author at emily.jarvie@proactiveinvestors.com
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