Canopy growth welcomed President Joe Biden’s announcement on Thursday that he would amnesty for thousands of people convicted of marijuana possession.
David Culver, Canopy’s vice president of government relations, said: “Today represents the action from the Administration we’ve been waiting for – an acknowledgment that cannabis bans have failed and the result. is that too many lives have been significantly affected.”
Shares of the Canada-based cannabis company, the world’s largest, jumped 22% on the news to close at $3.75. Shares of fellow cannabis company Brand Tilray increased by more than 30%. CNBC could not reach Tilray for comment.
“President Biden, in keeping with his campaign promises, has taken the actions necessary to heal the harms of the past and chart the course for responsible, legal cannabis markets in the future. future,” Culver said.
Canopy Growth’s operations in Smiths Falls, Ontario.
Tom Franck | CNBC
The move could be a step toward a broader relaxation of the federal drug classification. More than 6,500 people with convictions for simple marijuana possession have been affected by the pardon, according to the White House. This includes thousands of others pardoned under DC law.
“There are thousands of people with federal convictions for possession of marijuana, who could be denied jobs, housing or educational opportunities. forgiveness.
Biden called on governors to issue similar pardons for cases involving the state’s civil possession of marijuana.
In an earnings report Thursday morning, Constellation BrandsThe company, which owns 36% of Canopy’s outstanding shares, said it lost $1 billion related to its stake in the cannabis company.
Shares of Canopy have fallen more than 70% in the past 12 months amid slowing sales in the cannabis industry. Shares are down more than 90% to their all-time high of $56.89.
–CNBC’s Christina Wilkie contributed to this report.
