All eyes are waiting to see what happens with the bill before moving forward
Today at 11 AM Eastern, a conference call was held by the Minority Cannabis Business Association (MCBA), with participation by some of the strongest cannabis supporters on Capitol Hill, Representatives Barbara Lee and Earl Blumenauer. The calls were designed to address cannabis policies and how to include people of color in the industry, but also touched on the Strengthening the Tenth Amendment Through Entrusting States (STATES) Act, which was introduced last week. Most cannabis investors decided to sit back and see what new information was released regarding the act, causing the marijuana markets to temporarily stall.
According to a press announcement about the call, “The lawmakers and business leaders will discuss the path forward for ending the prohibition of marijuana, steps toward restorative justice for those negatively impacted by the war on drugs, and ways communities of color that were disproportionately impacted by cannabis prohibition can benefit from the new industry as owners, investors, managers and employees,”
The pinch was felt across the industry, with all cannabis companies seeing their prices shrink. Canopy Growth and Aurora dropped about 1.9% and HEXO slipped 2.58%. Aleafia Health Inc. dropped 4.47% and OrganiGram Holdings is down 2.24%. Cronos Group Inc. fell, but not for long. It was down 3.9% but is now up 1.28%.
The two major marijuana exchange-traded funds – Horizons Marijuana Life Sciences and ETFMG Alternative Harvest – are down 1.59% and 1.02%, respectively, and, by way of comparison, the Dow Jones Industrial Average is down .59% and the S&P 500 Index has dipped 0.44%.
These drops are only temporary, however, and will quickly be erased with stabilization. All marijuana stocks are meant to be seen for their long-term potential, and it’s going to be important to be ready to weather any storm.