- REUTERS/Luisa Gonzalez
- The Marijuana Opportunity Reinvestment and Expungement (MORE) Act was approved by the House Judiciary Committee Wednesday morning in Washington D.C.
- Stocks of cannabis companies surged Wednesday morning when the hearing began.
- The MORE Act would remove marijuana from the list of controlled substances in the US, expunge certain cannabis offenses, and reinvest in communities impacted by the War on Drugs.
- Here’s how much seven cannabis company stocks gained during the hearing.
- Read more on Business Insider.
Cannabis company stocks surged Wednesday during a key legal hearing for a bill that could take marijuana off the list of controlled substances in the US.
The House Judiciary Committee approved the Marijuana Opportunity Reinvestment and Expungement (MORE) Act Wednesday morning in Washington, D.C., voting 24-10 in favor of the bill.
Next, the MORE Act will be voted on in the House, where it will likely be passed by the Democratic majority. It will face a harder time in the Senate, which is controlled by Republicans and Majority Leader Mitch McConnell, who opposes legalizing marijuana, according to CNBC.
The MORE Act would expunge certain cannabis offenses and “provide for reinvestment in certain persons adversely impacted by the War on Drugs,” in addition to removing marijuana from the list of controlled substances in the US, where it’s currently a schedule 1 drug alongside heroin, ecstasy, and LSD.
“Today’s advancement of the MORE Act marks a significant victory for California cannabis business and consumers,” said Lindsay Robinson, executive director of the California Cannabis Industry Association in a press release.
She continued: “While the MORE Act still leaves unanswered questions for cannabis regulations it is great to see progress on the federal level that gets us closer to ending prohibition and making the cannabis industry more equitable.”
Here’s how much cannabis company stocks soared Wednesday as the MORE Act hearing kicked off, from highest to lowest jump in share price:
- Canopy Growth Corp: +17.1%
- Aurora Cannabis: +16.2%
- Hexo: +15%
- Curaleaf: +13.6%
- Tilray: +6%
- Cronos: +5.3%
Canopy Growth Corp., which has fallen about 33% this year, also got a boost from Bank of America Merrill Lynch, which upgraded its rating on the company to “buy” from “hold.” BAML analysts Christopher Carey and Lisa Lewandowski wrote that “the worst is over” for the company in a Wednesday note.