On May 20, Charlotte’s Web, the Colorado-based CBD giant and arguably one of the biggest names in legal cannabis, announced that the company was awarded its second federal patent on a cannabis plant.
Canopy Growth (NYSE:CGC)(TSE:WEED) will likely report its results for the fourth quarter of fiscal 2020 on May 29 before the market opens. So far, the stock has gained 31.3% in May on the NYSE and 29.3% on the Toronto Stock Exchange. Canopy Growth’s third-quarter earnings in February were a boon to the cannabis sector. Overall, the sector saw a string of bad news.
When a slew of cannabis firms reported quarterly earnings results, investors realized that markets beat down the sector. The sharp rally that ensued suggests that investors may continue holding or starting a new position in many marijuana stocks.
Not only are companies in the sector reporting smaller losses, but weak firms removed the excess supply that hurt prices. The stronger quarter revenue results should give marijuana stocks continued lift in the weeks ahead.
There’s a gaping budget hole caused by an economy in tatters.
There’s growing voter support and some assurance that the issue is no longer political poison. And there are tax windfalls, potentially huge revenues to be gleaned, if a bill can win bipartisan support in Harrisburg.
For those reasons, some Republican lawmakers in Pennsylvania are coming around — if slowly — to the idea of legalizing marijuana for adult recreational use.
The reasons are not hard to discern.
Ramon Garcia, who runs an Oakland-based cannabis distribution and delivery company called Padre Mu, grew up surrounded by cannabis. A second generation cultivator, he’s been in the volatile business for decades.
“I've been doing this in my family since I was 6, 7 years old, and only now can really talk about it,” he said, referring to the recently legalized status of his business. “As a cultivator, you have to adapt. You might have mold. You might have bugs. You might have a fire.”
Florida’s medical cannabis marketplace is based on the vertical integration of participating companies; this can be good for regulators and tax dollars, but very bad for patients and consumers.
Virtually no one is traveling around the United States at the moment, but that might change as all 50 states announce some re-opening measures after shutdowns caused by the coronavirus pandemic. When travel does resume, a new study finds that marijuana legalization actually increases tourism.
As COVID-19 cases continue to climb, people are staying home, limiting trips outside the house except for essential business. For millions of Americans, those essential trips include visits to cannabis dispensaries. Despite its federal status, cannabis has been deemed essential in most states where it is legal for medical or adult use.
In March, when everyone was shutting down and cannabis was proving itself to be an essential business across the U.S., Canada was also experiencing a surge in cannabis sales.
Some New York lawmakers and the Legal Aid Society are calling for last-minute legislation that would legalize marijuana as the state deals with a multi-billion dollar budget shortfall due to the novel coronavirus (COVID-19) pandemic.
Earlier this year, prior to the pandemic, New York Gov. Andrew Cuomo said that he had intentions to legalize marijuana, as it would potentially bring $300 million in revenues to the state.
However, once the pandemic struck, Cuomo dedicated his time and resources to that, and the state is now facing a potential $61 billion shortfall.
