Pot stocks have thrived in 2021 as Democrats' control of the government boosts the odds of legalization.
U.S President Joe Biden indicated during his campaign he would move to decriminalize the drug. Democrats in Congress have echoed such calls and taken additional steps, pushing for the full legalization of cannabis in the US.
The renewed effort to reschedule marijuana has been a major bonus for pot producers. While several states have either decriminalized or fully legalized the drug, a change of the federal drug law would open up the rest of the US and rapidly expand the marijuana market.
Aphria and Tilray led the charge, gaining as much as 58% and 36%, respectively. Aurora Cannabis and Cronos climbed 20% and 15%, respectively. Canopy Growth traded as much as 15% higher.
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The Wednesday rallies extended gains made earlier in the week. Tilray soared on Tuesday after announcing a deal to import and distribute medical cannabis products in the UK. Canopy Growth leapt in the previous session after reporting better-than-expected quarterly figures and moving closer to turning a profit.
Several industry CEOs have incorporated U.S. marijuana legalization into their near-term forecasts. Canopy CEO David Klein said in a Tuesday earnings call that he expects Biden to decriminalize the drug and allow the firm to enter the U.S. market in 2021.
Tilray CEO Brendan Kennedy told Bloomberg TV that federal legalization could be achieved in the next 12 to 18 months.
The high-flying stocks have also seen new demand from casual investors. Members of the Reddit forum Wallstreetbets looking for new stocks to bid higher have increasingly campaigned Aphria, Tilray, and other cannabis producers as strong picks.
Even though cannabis or Indian hemp grows effortlessly in Nigeria, the country is yet to consider legalising commercial production. Only the Governor of Ondo State, Rotimi Akeredolu appears to be pushing for the decriminalisation of the product.
Akeredolu had revealed in May 2019 that the marijuana market would be worth $145 billion by 2025 and he was ready to put his state and Nigeria in line to benefit from the gold mine.
“Our focus now is medical marijuana cultivation in controlled plantations under the full supervision of the National Drug Law Enforcement Agency," Akeredolu had said via a tweet.
“I strongly implore the FG to take this seriously, as it is a thriving industry that will create 1000’s of jobs for our youths and spur economic diversification.”