Shares of Tilray (TLRY) and Canopy Growth (WEED) each rose more than 20% on news that
U.S. President Joe Biden has pardoned thousands of people convicted of cannabis possession
and called for a review of how the recreational drug is classified under American federal law.
Shares of Canopy Growth rose 23% to finish trading yesterday (October 6) at $5.16. Shares of
Tilray jumped 33% to end the trading day at $5.37.
Both stocks are continuing to trend higher in premarket trading today (October 7).
Biden’s pardon and call for a legislative review are seen as a first step toward loosening and
eventually legalizing cannabis use at the federal level in the U.S.
More than 6,500 people with prior convictions for cannabis possession were impacted by
Biden’s pardon, according to a statement by the White House.
Biden urged state governors in the U.S. to issue similar pardons for cases regarding state
offenses for cannabis possession.
In calling for a review of federal cannabis laws, Biden said the current legislation that is in place
“makes no sense.”
Despite the current gains, Canopy Growth’s stock is down 70% over the last 12 months amid
slowing sales and a wave of consolidation in Canada’s cannabis sector.
Similarly, Tilray’s stock has fallen 61% over the past year.
