Election Day sparked a rise in cannabis stocks as Joe Biden snagged the White House, and marijuana initiatives passed across the country (18 measures legalizing medical marijuana, 10 measures legalizing recreational use). After four years of an administration that opposed the legalization of marijuana, the initial euphoria was rooted in the hopes of changing federal laws…
The enthusiasm cooled when it became apparent the anticipated Democratic blue wave did not materialize and the Senate could remain in GOP control, thus offering a continuation of the political status quo that has stalled legalization. Whether the next president and new Congress will address the continued federal prohibition on marijuana remains to be seen – during the election campaign, Biden’s campaign played up his support of decriminalizing marijuana but was silent on legalization.
Two prominent Canadian-headquartered cannabis companies, Aphria (APHA) and Canopy Growth Corporation (CGC), came into Election Day seeking to make their presence felt within the U.S. market. To date, their stock performances remain vibrant.
Both APHA and CGC focus on the medical and recreational marijuana markets. APHA, which is the sector’s dominant company within Canada, gained a foothold in Europe via the January 2019 acquisition of the German CC Pharma. Earlier this month, the company entered the U.S. market with the $300 million acquisition of Sweetwater Brewing Company, one of the nation’s largest independent craft brewers.
Over at CGC, its sports drink subsidiary BioSteel Sports Nutrition Inc. announced an exclusive partnership last month with the beverage distribution companies Manhattan Beer and Reyes Beer Division. But the company isn’t forgetting its cannabis roots: In June it modified a deal to…
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