Marijuana stocks Canopy Growth Corp. (CGC) and Cronos Group (CRON) trailed lower on Friday, after Canada's senate voted to legalize recreational marijuana — but not without some four dozen amendments that now need to be weighed by the House of Commons.
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The senate on Thursday voted 56-30 to legalize recreational marijuana use, amid resistance from the nation's conservative lawmakers. The House of Commons will consider the amendments to the bill and send it back to the Senate.
Legislation to legalize recreational marijuana in Canada was first introduced last year. It would allow users to have 30 grams of marijuana. Medical marijuana is already legal in Canada.
The amendments in the measure cleared by the senate, among other things, placed tougher advertising constraints on marijuana businesses and minors' usage of the plant. Another would let Canada's provinces decide whether people can grow their own marijuana at home.
The bill, if passed, would give its marijuana businesses a leg up on the U.S., where cannabis is still federally forbidden.
Marijuana Stocks Down
Canopy Growth, a big Canadian pot producer whose shares listed on the New York Stock Exchange last month, fell 3% in the stock market today. Canopy trades in Canada under the ticker WEED.
Cronos Group, another such producer in Canada, lost 5%. Cronos listed on the Nasdaq in February, after trading in Canada.
U.S. and Canadian marijuana companies have found new ways to raise money as they chew away at the legal barriers at their shared border. U.S. marijuana producer MedMen, which has been valued at $1.65 billion, went public in Canada last week.
But areas that have relaxed their marijuana laws have stumbled as they try to bring their sales and business infrastructure online. In the U.S., Scotts Miracle-Gro's (SMG) CEO called for more "states' rights" as patchwork regulations, particularly in California, weigh on its hydroponics business.
Scotts Miracle-Gro edged up 0.3% Friday, and Corona beer parent Constellation Brands (STZ), which has a stake in Canopy Growth, rallied 1.8%.
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The post Marijuana Stocks Canopy, Cronos Down As Canada Nears Full Legalization appeared first on Investor's Business Daily.
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