In a major break for the cannabis industry, US President Joe Biden announced he will pardon all prior federal offenses for simple marijuana possession.
What’s more, Biden said he will task the Department of Health and Human Services and Attorney General Merrick Garland to review how marijuana is scheduled under federal law – the first step toward potentially easing a federal classification that classifies it as a Schedule I narcotic along with drugs like heroin and LSD.
“No one should be in jail just for using or possessing marijuana,” the President said in a video statement.
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“Too many lives have been upended because of our failed approach to marijuana. It’s time that we right these wrongs.”
Biden also called on governors to do the same at the State level.
The news sent cannabis stocks soaring. The AdvisorShares Pure US Cannabis ETF, an actively managed fund that owns US cannabis companies, including multi-state operators (MSOs), jumped 34% on Thursday, while in Canada, the Horizons Marijuana Life Sciences Index was up nearly 13%.
On an individual level, share prices of some of the biggest US MSOs skyrocketed: Curaleaf Holdings Inc by 35%; Trulieve Cannabis Corp by 38%; Tilray Brands Inc by 31%; TerrAscend Corp by 27%, Jushi Holdings Inc by 56%; Planet 13 Holdings Inc (CSE:PLTH, OTCQX:PLNHF) by 32%, and The Valens Company (TSX:VLNS, OTCQX:VLNCF) Ind by 25%, to name a few.
While the news is a much-needed boon for the beleaguered cannabis sector, decriminalization, is not legalization, so it remains to be seen if the rally will be sustainable as the midterms approach. But one thing is for sure – Biden is fulfilling a long-held campaign promise by loosening marijuana laws. The next step is legalization.
Contact Angela at angela@proactiveinvestors.com
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