Leading cannabis stocks rallied following the midterm elections
Shares of major cannabis stocks rallied this week following the resignation of Attorney General Jeff Sessions. A staunch marijuana opponent, Sessions was viewed by many as the most significant roadblock to federal rescheduling and national cannabis legalization in the United States.
Tilray was up 30 percent at close on Wednesday while Aurora Cannabis rose nine percent. Canopy Growth and Cronos saw growth of 8.1 percent and 8.4 percent, respectively.
Sessions’ time in as AG will be remembered for his undoing of marijuana protections. In early 2018 he lifted the Obama-era policy known as the Cole Memo in an attempt to allow federal authorities to crack down on state-legal marijuana markets.
Despite his efforts, the Justice Department never followed Sessions’ leadership to go after the cannabis operations in states that have legalized medical or recreational marijuana. According to Cowen marijuana analyst Vivien Azer, the best case scenario for U.S. cannabis stocks is for the Justice Department to continue its inaction.
On Tuesday, voters in Michigan authorized the legalization of recreational marijuana for adults over 21 years old. The law allows adults to grow up to 12 cannabis plants for personal consumption and legalizes marijuana edibles. Private residences will be allowed up to 10 ounces of marijuana.
Michigan is now the 10th state to legalize recreational use along with the District of Columbia.
Another marijuana foe named Sessions, Texas Republican Rep. Pete Sessions is out of the way following the midterm elections. Pete Sessions blocked multiple pro-marijuana bills during his time as chairman of the House Rules Committee.