Marijuana Stocks Price: MORE Act lifts prices from lows, financials still weigh
- Cannabis stocks have cut short a losing streak amid hopes for better legal standing.
- Financials of companies may limit further gains.
- Aurora remains under pressure amid a highly dilutive deal.
Marijuana stocks have gone higher on Tuesday as the US House Judiciary Committee announced plans to advance a bill that would legalize cannabis on the federal level. Consumption of cannabis is legal to various degrees, only in multiple states.
Lawmakers led by Jerrold Nadler, the committee's Chairman, are promoting the Marijuana Opportunity Reinvestment and Expungement Act (More Act) that would help individuals suffering from life-damaging convictions the ability to access housing and vote. For weed stocks, having access to a full American market is a boon. The news sent shares higher with Cronus (CRON) jumping by over 9% following the news.
While House Democrats are moving forward with the More Act on Wednesday, it is unclear if Republicans will go along. Mitch McConnell, the majority leader, has met with executives of marijuana-related firms but has been a life-long opponent of legalization.
Marijuana Stocks Today
Nevertheless, weed equities are still struggling with sky-high expectations after the opening of the Canadian market have met the reality of making money. Aurora Cannabis is standing out with a highly dilutive offer on its convertible bonds. Despite the recovery, Aurora's stock price is down around a third in the past month.
The boom in the number of cannabis farms and their pricing may lead to bankruptcies down the road – even if the American market were to open fully.
Tilary, a company whose stocks have surged around Canada's decision, has missed Wall Street's expectations with substantial losses. The firm reported gross sales of $51.1 million but losses of $23.3 million. Its stock price will likely remain in the limelight on Wednesday.
Wednesday's trading will likely be marked by legislative efforts and speculation about the potential profitability of
See Marijuana Stocks Not Getting Investors High Ahead of Earnings
Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
