Marijuana News Today: California Marijuana Scores Major Victory, Signaling Growing U.S. Pot Acceptance

Marijuana News Today Ostapenko

Marijuana News Today

In the marijuana news today, we have another win for marijuana legislation in the U.S., this time with California officially permitting home deliveries of marijuana across the state. This makes it easier to get ahold of the drug in the richest pot market in the world.

The California government has endorsed a rule that allows marijuana home deliveries even in communities that have banned pot sales. (Source: “Cannabis deliveries OK’d in California: ‘The public spoke loud and clear’,” USA Today, January 16, 2019.)

The regulation was put in place by the state Bureau of Cannabis Control, despite facing resistance from police and other critics who fear that an unregulated, hard-to-control pot market will be created in the wake of these new terms.

On the flip side, many marijuana consumers and producers have pushed for home deliveries of pot, primarily due to the large areas in the state that have banned pot business activities or have delayed setting up legislation to permit marijuana sales.


California is a huge state, making home deliveries a much-needed addition to help deal with less mobile buyers.

“The public spoke loud and clear in favor of statewide delivery,” said Alex Traverso of the Bureau of Cannabis Control. (Source: Ibid.)

While this isn’t going to push the needle one way or the other for marijuana stocks today (state-level marijuana news rarely does), it is signaling yet more permissiveness toward the marijuana industry within the United States.

The California marijuana market is worth more than the entirety of Canada, when looking at population and gross domestic product (GDP). That makes California the largest marijuana market in the world. Therefore, how it handles distribution and legislation can serve as a roadmap for other jurisdictions interested in legalization.

Another important note for marijuana investors who are interested in the short-term impact of the legislative announcement is that California is likely to become a battleground state for larger marijuana companies operating out of Canada, as they seek to enter the hemp market in the wake of the U.S. 2018 Farm Bill.

Several major players have announced their intent to enter the U.S. cannabis market via hemp, and it is likely that they will all hungrily eye California as a place to make their mark.

With more permissive laws being enacted as time goes on, this will ultimately make California even more attractive and help boost sales for marijuana companies that are able to gain a foothold in the Golden State.

ACB Stock

On the flip side of the marijuana news today, however, we see gravity finally catching hold of Aurora Cannabis Inc (NYSE:ACB). As with all things, what goes up must eventually come down.

Aurora stock fell by nearly eight percent in early-morning trading today—likely a correction, considering its blistering gains over the past week or so.

Nevertheless, ACB stock is still up big over the past five days, raking in about 15%.

The reason for the pullback, as I wrote in yesterday’s “Marijuana News Today,” is most likely the massive gains that the stock witnessed as Aurora Cannabis acquired Whistler Medical Marijuana Corp. for CA$175.0 million.

While that event generated goodwill among investors, the stock’s gains were bound to prove unsustainable, bringing the share price falling back to earth.

The only other big news involving Aurora today was the issuance of $250.0 million in private offerings to raise capital, which no doubt hurt the share price. However, I don’t think it was the biggest factor in this morning’s poor performance. (Source: “Aurora Cannabis Announces Private Offering of US $250 Million Of Convertible Senior Notes Due 2024,” Cision, January 16, 2019.)

I have mixed emotions when it comes to ACB stock, one of my former favorite marijuana stocks. Last year was a disappointment, with the stock unable to perform apace with several of its competitors.

Aurora Cannabis has favored an aggressive acquisition strategy (which I like), but ultimately it failed to score a major partnership with Big Alcohol, Big Tobacco, or any other outside industry.

If Aurora is able to win over a hefty investment from the outside, I expect that the company’s fortunes will change and we’ll see ACB share prices skyrocket.

CGC Stock

Aside from Aurora, the marijuana news today on the pot stock market was rather sleepy.

Canopy Growth Corp (NYSE:CGC) was among several marijuana stocks that saw only modest gains to open the day. Canopy Growth stock was up about two percent in early-morning trading today.

Of course, things have been going very well for CGC stock as of late. Over the past five days, it has gained about 14% and has yet to suffer a fall like Aurora did today.

Canopy Growth remains one of my favorite marijuana stocks for long-term investors. It has all the right components in place to be successful for years to come.

The next thing on the horizon for Canopy Growth is to enter the U.S. hemp market. When that announcement lands, expect to see its share prices soar.

ACB and CGC Stock Performances

The performances of ACB stock (black line) and CGC stock (blue line) over the past week are seen on the chart below:

Chart courtesy of

Analyst Take

The marijuana news today had us looking again toward the future, while the pot stock market was calm this morning.

The California marijuana market continues to expand—much to the delight of marijuana bulls.

As the state continues to expand the permissiveness of its marijuana laws, expect to see other states follow suit. More importantly, expect to see the changes translate into stock gains if more marijuana companies find their way into the California cannabis market through hemp.