Canopy Cheers as Biden Pardons Marijuana Offenders

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The popular cannabis company Canopy (WEED) could not have asked for a better week as their stock continues to skyrocket following the pardoning of those convicted of cannabis-related offenses by former Vice President Joe Biden yesterday. Canopy’s stock jumped from around $50 to over $70 in the 24 hours following the announcement, putting it at an all-time high in terms of price per share, as well as market capitalization.

Canopy Growth welcomed President Joe Biden’s declaration on Thursday that he will release thousands of individuals from prison for marijuana possession convictions.

The classification of marijuana under federal law, according to the president, should be reviewed since it “makes no sense” as it stands right now.

Following the news on Thursday, shares of Canopy increased 22% and closed at $3.75. That day, shares of Tilray Brands, a different cannabis company, increased by more than 30%.

David Culver, vice president of government relations at Canopy, said in a statement that “today signals action from the Administration that we have been waiting for — an acknowledgment that cannabis prohibition has failed and that too many people have been negatively damaged as a result.”

President Biden “has set into motion the efforts needed to repair the wounds of the past and map a road for responsible, legal cannabis markets in the future, in keeping with his campaign vows,” Culver added.

The action taken by Biden may pave the way for a general easing of the drug’s government categorization. The pardons, according to the White House, affected more than 6,500 people who had previously been convicted of simple marijuana possession. Numerous further people have received pardons in accordance with D.C. law.

“There are thousands of people who may be excluded from housing, job, or educational prospects because they have had past federal convictions for marijuana possession. In a statement announcing the pardons, Biden noted that his decision will contribute in easing the collateral effects of these convictions.

Governors were asked by Biden to grant similar pardons in situations involving state convictions including marijuana possession.

Constellation Brands, which holds 36% of the outstanding shares of Canopy, disclosed in an earnings report on Thursday morning that it has written down $1 billion of its investment in the cannabis firm.

In light of declining sales across the cannabis business, Canopy’s stock price has decreased by more than 70% over the past year. The stock has dropped from its peak point of $56.89 by more than 90%.

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