Why Aurora Cannabis, Tilray, Hexo, and Sundial Investors Are Panicking Right now

What happened

Phone it a “Reefer Insanity” moment. In a flashback to the vintage 1936 anti-drug movie, marijuana investors received spooked these days by information reviews of well being worries between cannabis consumers — and it really is taking part in havoc with cannabis shares.  

In 1:55 p.m. EDT buying and selling:

So what

Different articles or blog posts released on important information web pages above the previous couple of days involved:

• Recounting stories of small children ingesting hashish gummies and suffering overdoses (CBS)
• Citing a analyze linking a soaring incidence of schizophrenia to “problematic use of marijuana” (CNN)
• and quoting an anti-marijuana activist contacting it a “really processed product” which is a supply of “cannabis-induced psychosis” (Fox News).    

Now what

These adverse media mentions occur at the exact same time when two competing marijuana legalization bills are building their way by the U.S. Senate and House, respectively — and they arrive at the similar time when President Biden is contemplating whether he will (or will not) signal any legalization bill that in the end receives passing votes from Congress.

The extra strident the criticism will get, the more very likely the president will eventually decide he will not sign a invoice legalizing marijuana. And seeing as that appears to be the direction he was leaning right before these headlines, I’d say that the odds for cannabis turning into lawful at the federal amount just got a entire large amount worse.