Market Watch 1/4/2018 by Ciara Linnane
A strong rally in cannabis-related stocks this week that marked the start of sales of recreational marijuana in California came to a screeching halt Thursday on a report that the U.S. Dept. of Justice is about to throw a spanner in the works for the nascent weed industry.
U.S. Attorney General Jeff Sessions, a longtime marijuana opponent, is expected to rescind an Obama-era policy that gave protections to states that have legalized marijuana as long as they abide by a series of guidelines, the Associated Press reported, citing unnamed sources. An announcement that will scrap what is known as the Cole Memo is expected later Thursday, said the AP.
The news sent cannabis stocks sharply lower, with Nevada-based Cannabis Sativa Inc. CBDS, -27.21% sliding 22%. The company is involved in the research, development and licensing of marijuana products. Colorado-based cannabis farmer GrowGeneration Corp. GRWG, -21.18% slid 21%.
Many of the listed cannabis companies in North America are based in Canada, which is gearing up to fully legalize marijuana later this year. Those stocks were caught up in the downdraft, with Toronto-based medical marijuana distributor Supreme Cannabis Co. Inc. SPRWF, -13.32% down 9.8%, while Ontario-based rival Canopy Growth Corp. WEED, -12.03% slid 9.6%.
More:
https://www.marketwatch.com/story/cannabis-stocks-tank-on-report-doj-to-rescind-state-protections-2018-01-04?mod=bnbh
