Cannabis stocks back on top
In New York, too, Governor Cuomo is now putting plans for full legalization on the table.

Shares in Canadian cannabis giant Aphria rose Thursday, the day after the company announced plans to enter the U.S. market with the purchase of SweetWater Brewing for $ 300 million in cash and shares. David George-Cosh at BNN Bloomberg's David George-Cosh knows the details.
Cannabis companies rallied Thursday to reverse a slump from the previous day as they were optimistic again this week about lifting restrictions on marijuana sales in five states. Stock movements took off in the afternoon session after New York State Governor Andrew Cuomo told a local radio station that New York State would attempt to legalize cannabis next year. The nation's fourth most populous state was well on its way to legalizing this year before Cuomo dashed plans in March.
Aurora Cannabis Inc., Tilray Inc., and Aphria Inc. led the way with double-digit gains. Aurora's shares rose as much as 40 percent, while Tilray rose 33 percent. Shares in Aphria, which operates primarily in Canada, rose 14 percent after the company announced it plans to buy an artisanal brewery to expand into the US ahead of a possible move towards legalization. Exchange-traded fund ETFMG Alternative Harvest, or MJ, climbed 11 percent, its largest intraday gain since March 26, after closing 3.1 percent on Wednesday.
The gains followed ballot passages in Arizona, Mississippi, Montana, New Jersey, and South Dakota, which are now added to the 44 states that allow medical or recreational marijuana. Boris Jordan, chairman of Curaleaf Holdings Inc., one of the largest cannabis companies, said Wednesday the passages in the states are "a green landslide". It is still a long way from the industry's vaunted hopes that sent the fund to record highs in September 2018. MJ has since lost more than 70 percent of its value.
Despite growing support for cannabis in the U.S., federal legalized pot legislation could be off the table for now, particularly with the possibility of Republicans retaining control of the U.S. Senate. However, a divided government could bode well for the passage of the Secure and Fair Enforcement Banking, or SAFE, Act that would enable cannabis banking, senior political analyst Jaret Seiberg of Cowen & Co. wrote in a note. "This is likely to become the main focus for the cannabis industry.
The downside is that in the event of a sweep, the SAFE law would not be necessary as the Democrats would have legalized cannabis," wrote Seiberg. Trulieve Cannabis Corp. CEO Kim Rivers said Senate Majority Leader Mitch McConnell's statement on Wednesday that the Senate would be reconvened to pass an economic stimulus plan by the end of the year, in addition to the election results, was more good news for the industry.





