Cannabis Stocks Surge Amidst Favorable Regulatory Signals

NEW YORK, NY–In recent days, cannabis stocks have been on an upward trajectory, buoyed by positive regulatory developments. This rally has sparked optimism among investors, particularly in the Canadian Licensed Producers (LPs) and U.S. Multistate Operators (MSOs) segments.

The resurgence began following reports of a leaked letter from the U.S. Department of Health and Human Services, which recommended the descheduling of cannabis by the U.S. Drug Enforcement Administration in late August. Subsequently, Senate Majority Leader Chuck Schumer’s remarks on advancing the SAFE Banking Act as part of near-term legislative priorities added further momentum to the cannabis market.

This string of positive news has injected new life into the previously beleaguered cannabis industry. Leading Canadian LPs, including Canopy Growth (NASDAQ: CGC), Aurora Cannabis (NASDAQ: ACB), and Organigram Holdings (NASDAQ: OGI), have witnessed double-digit percentage gains, accompanied by above-average trading volumes.

Notable gains have also been observed among Clever Leaves Holdings (NASDAQ: CLVR), Village Farms International (VFF), Curaleaf Holdings (OTCPK: CURLF), Trulieve Cannabis (OTCQX: TCNNF), MedMen Enterprises (OTCQB: MMNFF), High Tide (HITI), and Cresco Labs (OTCQX: CRLBF).

Cannabis-related exchange-traded funds (ETFs) have not been left behind, with ETFMG Alternative Harvest ETF (M.J.), AdvisorShares Pure Cannabis ETF (YOLO), Global X Cannabis ETF (POTX), AdvisorShares Pure U.S. Cannabis ETF (MSOS), and AXS Cannabis ETF (THCX) also experiencing positive gains.

It’s worth noting that, despite this recent surge, the majority of cannabis stocks have endured substantial losses over the past year, with only a select few, such as TerrAscend Corp. (OTCQX: TSNDF) and High Tide Inc. (HITI), managing to defy the trend.