On Monday, the U.S. House of Representatives passed legislation that would allow banks to provide services to cannabis companies in legal states. The bill clarifies that proceeds from legitimate cannabis businesses would not be considered illegal and directs federal regulators to craft rules for how to supervise such banking activities.
However, the stocks of some well-known cannabis companies are all down today. As of 11:50 a.m. EDT in this morning, Aphria was down 7%, Canopy Growth was down 5%, Cronos Group was down 4%, Tilray was down 6% and Sundial Growers was down 4%. So why is this and what does the bill mean for these companies?
In fact, the passage of the bill will address the cash needs of cannabis companies that are operating legally in the states in the US. It will creates an amazing opportunity for these cannabis companies which growing in the U.S., and there may be some mergers and acquisitions activities in the future. However, everybody knows that it's not to legalize cannabis, but it would be a legal adjustment aiming the cannabis industry, which may not benefit some Canadian cannabis companies that are seeking to expand their market in the U.S., or a bad news for them.
These cannabis companies outside the U.S. are working hard to increase their sales and to struggle to achieve profitability, and the United States is a lucrative market these companies have long coveted. Although this cannabis banking bill was approved by U.S. House, there is still no timetable for the legalization of cannabis at Federal-level.
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