Cannabis stocks rose even higher since Canadian Senate voted in favor of adult use marijuana across the country. The Canadian Senate voted 52-29 in favor of Cannabis Act C-45. Everyone above 18 years of age is allowed to possess recreational marijuana up to an ounce and grow four plants, according to the new law.
The cannabis act will allow all provinces to regulate the recreational cannabis markets along with establishing their system for licensing.
Canadian Prime Minister Justin Trudeau Supports Legalization
To show his support for the cannabis act, Canadian Prime Minister Justin Trudeau tweeted, “It’s been too easy for our kids to get marijuana – and for criminals to reap the profits. Today, we change that. Our plan to legalize & regulate marijuana just passed the Senate.”
The prime minister has set October 17 as the date for complete legalization. He says the delay in full legalization is due to the strategy of giving more time to the provinces and territories to execute their regimes.
Cannabis Stocks Rebound
Cannabis stocks are enjoying Canada’s decision to support the cannabis industry; the marijuana index rose 2.5% to 270 points, rebounding from its small losses in the last two weeks.
Cannabix Technologies Inc (OTCPK:BLOZF) was the biggest gainer. Its share price jumped more than 14% following the announcement of the cannabis act. It is engaged in developing marijuana breathalyzer technology.
mCig Inc (OTCPK:MCIG) was the second biggest gainer following the cannabis legalization in Canada; its share price rose 11% on Wednesday. The company believes cannabis legalization in Canada would offer huge support to its revenue generation potential. It is planning to become a leading distributor of technology, products, and services to the rapidly expanding industry.
Auxly Cannabis Group Inc. (OTCQB:CBWTF), WeedMD Inc. (OTCPK:WDDMF), Canopy Growth Corporation (NYSE:CGC), and several other cannabis stocks generated mid-range single-digit gains. Indeed, cannabis companies are hopeful that legalization will allow cannabis companies to expand their revenues higher than analysts’ expectations. Canopy Growth’s manager Adam Greenblatt, for instance, says, “In five years time people will be drinking cannabis drinks at a cocktail party as if drinking good wine.”
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