(Reuters) – Cannabis stocks surged Wednesday as Democrats won a key U.S. Senate run in Georgia and led another, approaching a stunning sweep that would give them Congressional control and power. to act on their promise to legalize weed.
The U.S.-listed shares of Aphria Inc, Hexo Corp and Cronos Group rose between 10.4% and 13%.
Marijuana stocks have increased since Joe Biden’s victory in the US presidential election in November and increased demand for weed during the coronavirus freezes.
Vice President-elect Kamal Harris promised the decriminalization of the herb, which would remove it from the list of classified substances. But with Republicans gaining control of the Senate in the November election, the passing of acts to decriminalize it had seemed depressing.
Although marijuana has been legalized in some states, its use is still federally illegal. Marijuana import to the United States from other countries, or even between states, are banned, and federally governed institutions, such as banks, can even be accused of money laundering if they work with marijuana growers.
Democrat Raphael Warnock’s victory over looming Republican Kelly Loeffler and Jon Ossoff’s lead over looming David Perdue on Wednesday would give Democrats the power to advance President-elect Joe Biden’s political goals.
“As Democratic President-elect Joe Biden takes office later this month, and the House remains controlled by the Democrats – a democratic shift could pave the way for more progressive cannabis legislation to pass,” said Aaron Gray of Alliance Global Partners in a Note.
Reportage by Arunima Kumar in Bengaluru; Editing by Shinjini Ganguli