U.N. Reclassifies Cannabis and Pot Stocks Get High Off the Positive News
Cannabis stocks and major trade cannabis companies have been getting pummeled over the past 2 years. This was attributed - by many - in many ways to the law changes that took place in Canada on October 2018, which federally approved and legalized cannabis. This was a move that took Aurora Cannabis and many others in a bit of surprise. Additionally, it negatively impacted American cannabis companies who failed to reach their projected heights.
Luckily for the cannabis industry, the world has been taking a different approach and more studies have been conducted by the W.H.O. who recently recommended to the United Nations that a more lenient approach to the classification of cannabis and THC should be considered and taken. While not all of the suggested proposals were approved, a particular one that generalizes – and is more of a symbolic gesture – did get approved. This paves the way for Nations and businesses across the world to increase and improve research and development on the medicinal benefits of cannabis.
It seems the United Nations is following the moves of the U.S. House of Representatives, which announced to the press of a scheduled vote the following Wednesday over the “Marijuana Opportunity Reinvestment and Expungement Act”. This bill would decriminalize cannabis use on a federal level as well as exercise other changes, such as the expungement of criminal records associated with the use or handling of cannabis products.
Although the move by the U.S. House of Representatives is a bold one and expected if you are in the camp that Biden will be the next President, it too is merely a symbolic gesture just like the W.H.O. recommended to the U.N.
In the end, the Senate is presenting many difficulties when it comes to cannabis legalization. Approval of the bill is not expected to pass, like many of the other hundreds of bills that the U.S. House of Representatives has passed but were too one sided to meet in the middle for Senate leaders.
Symbolisms seem to be the name of the game when it comes to the House of Representatives. Sounding good to your base does nothing for the progress of “Cannabis Legalization” if a bill is too one-sided to meet some level of approval. Each pro cannabis leader must work towards this goal by slowly improving on what the previous administration or set of leaders accomplished. This goes a lot further than symbolic gestures.
As follow the leader goes, the United Nations on Wednesday also took up a vote on the scheduling of Cannabis. Until then, cannabis under the international agreements is classified as a Schedule IV substance. This classifies it in a similar manner that heroin is classified, even though cannabis is not considered to be such a dangerous and highly addictive drug.
Although the United Nations is still going to classify marijuana as a controlled substance, it will however, open doors for the research of therapies and medicinal cures. In many ways and to many supporters, this is merely as symbolic as the gesture of the U.S House of Representatives.
Research into medicinal therapies derived from the marijuana plant have already been going on for decades. In the U.S and abroad, research on how CBD and THC can affect the body and its medicinal use is not current news. A simple Google search can teach us that, so why the big hype about the current events?
Makes you wonder if something else bigger is happening in the world and this news is just to distract everyone else from it.
Many cannabis stocks jumped higher on Monday trading off the news. However, like many substances, this high was short lived. The news did bring about growth to many of the struggling pot stocks but just a week later, it turns out that some are not living up to their hype. As such, you can already see their increases diminishing on the open market.
According to Market Watch, Sundial Growers Inc had more than doubled during the Monday’s trading news. However, many are saying that this is also attributed to the company extinguishing debt. Additionally, during its initial public offering, the company had been valued at over $1 Billion. This is quickly showing not to be the case.
Aurora Cannabis Inc. was another pot stock that saw jumps on Monday’s trading. This was a bit of a surprise since the company has recently reported that it will shut down one of their flagship operations which was continuously propped up by their previous Executives. MKM Partners Analyst Bill Kirk stated in a note passed along on Monday that “Aurora had indicated…that the headcount and production right-sizing was behind them, but these additional layoffs at Aurora Sun imply further unfavorable or unanticipated shifting in the supply and demand equilibrium”.
Canadian companies, which have more freedom in U.S. exchange trading have also seem an uptrend in their Monday’s trading session. You can check out more detailed stories on these stocks in Market Watch.