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Get ready for next week!
Here we go! You ready for this?
The moment has finally come and legislation to legalize marijauana at the federal level will be up for a House floor vote as soon as next week. The House Rules Committee just announced yesterday, Thursday 3/24, that it will hold a hearing regarding the bill on Monday 3/28. This is the final step before consideration on the floor.
The bill would remove cannabis from the federal list of controlled substances and and eliminate criminal penalties associated with the drug. It would also impose a federal tax on marijuana sales to fund programs to help communities that are negatively impacted by the war on drugs.
As we have seen, some states have already moved to legalize marijuana in some way. “At least 37 states, four territories and the District of Columbia allow cannabis products for medical use, according to the National Conference of State Legislatures. A smaller number — 18 states, two territories and the nation’s capital — have enacted measures to permit cannabis for nonmedical use” ( The Hill).
By legalizing marijuana across the country, it could likely increase marijuana sales. This would mean higher valuations for cannabis companies in the stock market. These following 5 companies are worth watching (Republic-Online).
- Canopy Growth Corporation (NASDAQ: CGC)
- Aurora Cannabis Inc. (NASDAQ: ACB)
- Tilray Brands Inc. (NASDAQ: TLRY)
- GrowGeneration Corporation (NASDAQ: GRWG)
- High Tide Inc. (NASDAQ: HITI)
2. Aurora Cannabis Inc: a licensed producer of medical and consumer cannabis with sales and operations in more than 25 countries worldwide. They continue to be one of the fastest-growing cannabis companies in the world. Just over the past week, ACB stock has risen by over 17%. Recently, the company released they will be be acquiring TerraFarma, the parent company of vertically integrated cannabis company Thrive Cannabis. Aurora will also be adding Being to its portfolio.
3. Tilray Brands Inc: a leading name within the global cannabis market. This company is in the cannabis lifestyle and consumer packaged goods business. They currently operate across Canada, the U.S., Europe, Australia, and Latin America. With extensive work in weed research, cultivation, and distribution, Tilray supports its extensive portfolio of brands.
4. Grow Generation: the largest specialty retailer of hydroponic and organic gardening equipment in the US. They have a network of 63 stores located throughout U.S. states where cannabis is legal, with plans to open up 15-20 new garden centers in 2022. Revenues for the quarter came in at $90.6 million for the quarter, up by 46% from the same period last year.
5. High Tide: a retail-focused cannabis company that operates across Canada, Europe, and the U.S. The company’s portfolio includes a Canadian cannabis retail chain, a global manufacturer, and a distributor of cutting-edge consumption accessories. It’s worth noting that it has some of the most popular accessories e-commerce platforms in the world with almost 100 million site visits in 2020 alone. High Tide reported , revenue came in at $72.2 million this quarter, nearly doubling from $38.3 million in the same quarter last year.
Just a little insight for you as we head into next week! Stay tuned, let’s see how this plays out.
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