(Reuters) – Cannabis shares rose on Wednesday as Democrats won a key US Senate victory in Georgia and led in second, moving closer to a sizzling sweep that would put them in control of Congress and power to pot Will work on its promise to legalize.
Shares of Americas-Aferia Inc, Hexo Corp and Kronos Group rose between 10.4% and 13%.
Pot stocks have gained momentum due to Joe Biden’s victory in the US presidential elections in November and more demand for pot during the coronovirus-led lockdown.
Vice-President-Elect Kamal Harris has promised pot decriminalization, which would remove it from the list of classified substances. But with the Republicans regaining control of the Senate in the November election, the passage of acts of decriminalizing it was clouded.
Although marijuana has been legalized in some states, its use is still illegal at the federal level. Importation of marijuana from the US into other countries or even states prohibited and unionized entities, like banks, can be charged with money laundering if they work with marijuana growers.
Democrats will give power to advance President-elect Joe Biden’s policy goals on Wednesday over Democratic Rafael Warnak’s victory over Republican unaffiliated Kelly Loeffler and John Ossoff-led David Perdue.
“Democrats see President-elect Joe Biden will take office later this month, and the House remains controlled by Democrats – a Democratic sweep could pave the way for more progressive cannabis legislation to be passed,” Partners of the Alliance Said, pay attention.
Reporting of Arunima Kumar in Bengaluru; Editing by Shinjini Ganguly