Shares of cannabis multi-state operators (MSOs) rose on Monday on investor optimism around a key vote on marijuana banking reform this week.
The Senate Committee on Banking, Housing and Urban Affairs is holding a markup session on the bipartisan Secure and Fair Enforcement Regulation (SAFER) Banking Act at 9.30am on Wednesday, September 27.
Should the Committee approve the proposal, Senate Majority Leader Chuck Schumer has promised to bring it before the full Senate “with all due speed.”
The SAFER Banking Act is expected to be game-changing for cannabis companies, allowing easier access to capital as it removes penalties for banks and financial institutions providing services to legal cannabis-related businesses.
The proposal is expected to win the Committee’s approval, with Chairman Sherrod Brown (Democrat-Ohio) telling Ask a Pol’s Matt Lalso late last week that he expects a “strong majority” will support it.
Investors appear to agree, with Canopy Growth Corporation (TSX:WEED, NYSE:CGC) leading the gains among cannabis stocks on Monday, adding 18% at US$0.99.
Jushi Holdings Inc (CSE:JUSH, OTCQX:JUSHF) added 7.4%, Trulieve Cannabis Corp. (CSE:TRUL) gained 6.6% and Tilray Inc (NASDAQ:TLRY) added 6%,
Aurora Cannabis Inc (TSX:ACB, NASDAQ:ACB) was up 5.7%, Green Thumb Industries Inc. (CSE:GTII, OTCQX:GTBIF) gained 4.8%, Cronos Group Inc (NASDAQ:CRON, TSX:CRON) gained 4.5%, and Curaleaf Hldgs Inc. (CSE:CURA, OTCQX:CURLF) was up 4.2%.
Contact the author at emily.jarvie@proactiveinvestors.com
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