In spite of some good news on the legalization front, cannabis stocks traded down this week, largely driven by lackluster earnings reports out of big Canadian companies.
On Monday, New Mexico became the latest state to legalize adult-use cannabis, after Gov. Michelle Lujan Grisham signed the Cannabis Regulation Act. Sales are expected to begin before April 2022.
Following a legalization wave led by New York and Virginia, this approval puts more than 43% of Americans living in legal cannabis jurisdictions, according to The Marijuana Policy Project.
Switzerland will officially launch a trial version of a legal recreational cannabis market on May 15. The Swiss Federal Office of Public Health noted that the trial aims to offer “a scientific basis for the future regulation of cannabis.”
This will make Switzerland the first country in Europe to allow a legal adult-use cannabis supply chain. The trial will include 5,000 registered participants, who have proven to the Federal Government they already have been consuming cannabis.
Senate Majority Leader Chuck Schumer (D-NY) plans to present a federal cannabis legalization bill soon.
“I am going to put this bill on the floor soon. It hasn’t been introduced yet,” Schumer said, explaining he has been working with Senator Cory Booker (D-NJ) and Senate Finance Committee Chairman Ron Wyden (D-OR) on the measure’s draft. “Once it is introduced, it will go on the floor.”
Dara Khosrowshahi, CEO of Uber Technologies Inc. (NYSE: UBER) revealed the company is open to including cannabis deliveries once the plant is legal on the federal level.
"When the road is clear for cannabis, when federal laws come into play, we're absolutely going to take a look at it," Khosrowshahi said during a CNBC interview.
ETFs were all down. Over the five trading days of this week:
- The ETFMG Alternative Harvest ETF (NYSE: MJ): lost 5.6%.
- The AdvisorShares Pure Cannabis ETF (NYSE: YOLO): tumbled 6.6%.
- The AdvisorShares Pure US Cannabis ETF (NYSE: MSOS): dropped 5.55%.
- The Cannabis ETF (NYSE: THCX): slipped 9.5%.
- The Amplify Seymour Cannabis ETF (NYSE: CNBS): dropped 7.7%.
- The SPDR S&P 500 ETF Trust (NYSE: SPY) was up 1.31%.
Policy, Science And Data
Illinois cannabis taxes exceeded liquor taxes in the first three months of 2021, according to the state Department of Revenue. It’s the first time the Prairie State generated more tax revenue from cannabis than alcohol.
Marijuana tax revenue amounted to $86,537,000 in the last quarter, versus $72,281,000 from alcohol sales.
Michigan recreational and medical marijuana sales amounted to $115.4 million in March, according to Headset. That's twofold growth compared to the same period last year.
A bipartisan bill to legalize medical cannabis for military veterans was reintroduced in Congress on Thursday.
A new study conducted by Harvard Medical School and McLean Hospital in Boston suggested cannabis treatment can significantly help with chronic pain.
The study revealed that those who used medical cannabis daily for six months experienced notable advancements in their overall health status: less pain and anxiety, better sleep and mood.
Akerna Corp (NASDAQ: KERN) expects national cannabis retail sales to reach $95 million on 4/20, the unofficial marijuana holiday. That's according to a new Flash Report out of the Denver-based company.
The report suggests that the five days ending April 20 are expected to yield $370 million in cannabis sales.
"The numbers just keep growing in all aspects of the …