Cronos stock fell 3.2 percent after the warning about stricter border control for marijuana investors
A troubling warning about a possible policy on the United States side of the U.S.-Canadian border affected marijuana stocks on Wednesday. The price of Tilray (NASDAQ: TLRY) and Cronos Group (TSE:CRON) stocks fell after hours Thursday following a report that cannabis industry employees and investors won’t be allowed into the U.S.
The warning was reported by Politico. According to the Politico executive assistant commissioner of Field Operations Todd Owen, working in the marijuana industry is now grounds for inadmissibility into the country. Owen said investors from nations including Israel have already been blocked from entering the U.S.
Immediately after the news broke, Tilray stocks fell 2 percent; Cronos fell 3.2 percent, while Canopy Groth dropped 2.9 percent. Earlier the same day, Tilray stocks spiked after the company received approval to export medical marijuana to Germany.
Owen said border authorities are not asking all travelers to the U.S. whether they work in the marijuana industry or have used the drug. However, he warned, lying to authorities about past drug use is considered fraud and can incur a lifetime ban.
The warning had a harsh impact on Cronos Group, which announced the launch of its second marijuana brand on the same day. Spinach joins Cronos’ Cove as the mid-market product line under Cove’s premium brand.
The company described the brand’s name choice as a way to appeal to fun-loving adults that are “sick of hearing about kale.” Cronos also said the name reflects their responsible choice not to appeal to kids. The website features images of bulk vegetables.