Image: Elsa Oloffson (cbdoracle.com)
House Approval Expected for Marijuana Opportunity Reinvestment and Expungement Act (MORE Act)
The first week of Spring may be exciting for marijuana businesses, both publicly traded and private. On Thursday (March 24), The House branch of Congress scheduled a vote to legalize cannabis federally, (MORE Act).
As soon as Monday, The U.S. House of Representatives will vote on the Marijuana Opportunity, Reinvestment, and Disposal Act. This bill would remove marijuana from the list of federally controlled substances. The MORE Act is expected to pass, at that point, it would make its way to the Senate for a vote and is expected to eventually wind up on the desk of the President to be signed into law.
Investors viewed this move to put it on the calendar the last week in March as a huge positive which then pushed cannabis-related stocks higher. Medicine Man Technologies – Schwazze (SHWZ) saw its shares leap 10.48% on Thursday. SHWZ is involved in production, consulting, and retailing. Stem Holdings (STMH), is involved in properties used in cannabis agriculture, it saw its shares jump 9.37%. Both SHWZ and STMH are small, growth companies with equity research coverage provided on Channelchek, by Noble Capital Markets. Other cannabis companies involved in various ends of the business, both large and small saw similar movement.
The federal legalization of marijuana has bipartisan support in Congress. While it is widely expected to pass in the House and Senate, it is not certain whether President Biden will sign. Senate Majority Leader Schumer has been lobbying President Biden on the positive implications of legal marijuana and has expressed hope Biden will support the law.
Cannabis is legal for recreational use in 18 states and for medical use in 38. Federal recreational drug legalization would dramatically increase the market for cannabis growers, refiners, and distributors while eliminating concerns over banking and securities laws related to involvement in federally illegal businesses.
Sources
https://www.congress.gov/bill/117th-congress/house-bill/3617/
https://norml.org/blog/2022/03/24/us-house-of-representatives-to-vote-on-more-act-next-week/
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