US Midterm elections: AG Sessions resigns as cannabis stocks soar & 3 more states legalize

US Midterm elections: AG Sessions resigns as cannabis stocks soar & 3 more states legalize

As the dust settles from the American midterm elections on Tuesday, November 6, there have been some big changes that will without doubt have a lasting impact on the nation ’s cannabis policy, including 3 more states legalizing cannabis in some form.

Michigan voted to legalize medical and recreational cannabis, while Utah and Missouri will allow medical cannabis sales. That means, in total in the united states, recreational cannabis is defined to be legal in 10 states and medical cannabis will be available in 33 states (plus Washington, D.C.).

There was even more excellent news for cannabis on Wednesday, the day after the midterms, when Attorney General Jeff “Great Men and Women don’t smoke bud ” Sessions resigned, or as his resignation letter stated:

“Dear Mr President,

In your request, I am submitting my resignation. ”

Sessions was seen by the cannabis industry as a significant barrier in the push for national cannabis reform given his decades of outspoken opposition to cannabis, and earlier this season, Sessions rescinded the Obama-era Cole Memorandum which meant that the national government adopted a hands-off approach to states that had legalized cannabis, despite it still being illegal at the federal level.

Here’s hoping that the next Attorney General reinstates the Cole Memo- it’s the very least they could do to alleviate some of the doubt that swirls around the industry- and ideally they’d contemplate taking cannabis out of Schedule 1 of the Controlled Substances Act, especially since 66% of the states have legalized cannabis for medical use.

There was proof that Sessions was waging a one-man war against cannabis, as even President Trump (who doesn’t smoke or beverage ) didn’t seem to share his Attorney General’s hatred of the herb. Trump even indicated in back in June he’d “probably” support the STATES Act, a bipartisan bill that would allow banks to work with cannabis companies in nations where it was legal, something that is now illegal under the Controlled Substances Act.

The news of Sessions’ resignation, a staunch anti-cannabis zealot the Drug Policy Alliance deemed a “drug war dinosaur”, had the cannabis industry celebrating, which sent cannabis stocks soaring in the aftermath of the bombshell announcement yesterday afternoon.

As Russell Stanley, managing director of equity research at Beacon Securities Ltd., told the Financial Post:

“The entire space is currently rallying on the Sessions news.

The [cannabis] industry viewed Sessions as a significant barrier to cannabis legalization and so this threat has been eliminated — the sector, especially companies that derive bigger operational benefits from the U.S., are responding to that. ”

Wednesday’s biggest winner was the Canadian LP Tilray, with stocks jumped almost 30% on the Nasdaq. Other firms like MedMen, Canopy Growth Corp, and Aurora Cannabis all saw gains of around 7 percent, while Aphria also got a 5% boost.

Featured picture courtesy of CNN.

Sources

CNBC: Embattled Attorney General Jeff Sessions resigns under pressure from Trump.

Financial Post: Jeff Sessions’ ouster key win for cannabis investors, but exit of another Sessions is an even bigger bargain .

Released at Thu, 08 Nov 2018 20:25:33 +0000

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