Marijuana News Today
In the marijuana news today is an Ohio lawsuit that could potentially see the state delay its plans for medical marijuana legalization.
The lawsuit revolves around the state’s licensing process, with final arguments to be heard on Monday.
The lawsuit seeks to place an injunction on the state commerce department from issuing certificates of operation to the 12 businesses that have qualified for provisional licenses to grow pot in the state. (Source: “Ohio’s medical marijuana program could be blunted by judge’s ruling,” Cincinnati Enquirer, May 14, 2018.)
The lawsuit is looking to prevent the biggest pot producers in the state—known as Level 1 growers—from having marijuana on site until the state hears appeals from unsuccessful applicants who believe that the process to award these licenses was not done fairly.
53 unsuccessful applicants for Level 1 licenses have requested hearings with the state commerce department, which awarded the licenses.
The marijuana program in Ohio is set to go live on September 8, leading some to worry that this lawsuit could create a scarcity of pot to meet the demand.
At stake here is what the lawsuit claims would be an insurmountable advantage that companies with the Level 1 license would enjoy should the other companies be denied the ability to sell their product come September 8.
While no public marijuana stock is currently in contention for these licenses or to sell its product in Ohio, the lawsuit presents a roadblock on the way toward U.S. marijuana legalization.
While recent developments have demonstrated that marijuana enjoys more U.S. support than ever before, the marijuana news today shows that many legal hurdles will still have to be overcome on the way toward that goal.
U.S. senators—especially in the Democratic Party—have begun coming out in droves in support of U.S. marijuana legalization (or at least decriminalization).
This includes some of the biggest names in the party from Senate Minority Leader Chuck Schumer (D-N.Y.) to presidential hopefuls Senator Kamala Harris (D-Calif.), Senator Cory Booker (D-N.J.), Senator Kirsten Gillibrand (D-N.Y.), and Senator Bernie Sanders (I-VT).
Alongside the political support, recent polls have shown that the majority of Americans do, in fact, support U.S. marijuana legalization.
But legal battles like the one taking place in Ohio are going to scare some investors away from the marijuana market, due to how far the pot business still has to go.
From marketing to licensing, the process for legalizing pot is not a speedy one. In Canada, we’re seeing calls to delay recreational marijuana legalization from some lawmakers who believe that the process is being rushed.
The marijuana news today also reveals just how important being first in this emergent industry can be.
If a company is unable to get its product to market in the early days of legalization—whether on a state or federal level—there may not be much room left for them after supplier agreements have already been solidified and consumers have established their preferred marijuana suppliers.
Canopy Growth Stock’s NYSE Listing
In positive marijuana news, May has so far been a strong month for stock growth.
Chart courtesy of StockCharts.com
Canopy Growth Corp (OTCMKTS:TWMJF, TSE:WEED) has seen its value rise by nearly 10% over the past five days as stocks seem to have finally rebounded from the market-wide correction that had been haranguing the market for months.
News broke that Canopy Growth has applied to list on the New York Stock Exchange (NYSE) under the ticker NYSE:CGC.
This is a huge move for the largest legal marijuana company in the business by market cap. It also marks the second pure-play marijuana company to register on a major international exchange.
The Canopy Growth NYSE listing is expected to be in place by the end of May.
We’ll likely see a large boost in Canopy Growth stock on the way toward that listing.
If the company enjoys even some of the success that followed Cronos Group Inc (NASDAQ:CRON) getting its symbol on the Nasdaq, expect big things from Canopy Growth stock in the next few months.
Another company that has enjoyed a good amount of success so far in May is Aphria Inc (OTCMKTS:APHQF, TSE:APH).
Aphria stock was one of the most damaged stocks following the correction that began in mid-January. Investors feared that the company was overvalued following the massive run that the marijuana industry experienced to close out 2017.
Aphria lost more than 40% of its value over the course of 2018, but Aphria stock’s fortunes may finally be turning around.
The stock price has seen a surge of 17% over the past five days, speaking to the renewed interest in Aphria stock’s future.
The company may have finally bottomed out and hit a stock price that investors are comfortable with.
Another company that has enjoyed moderate—if comparatively lesser—success so far in May is Aurora Cannabis Inc (OTCMKTS:ACBFF, TSE:ACB).
Aurora stock has jumped nearly three percent over the past five days.
The marijuana news today for Aurora stock involves two strong developments for the company.
The first is that last week’s release of the company’s Q3 financial report revealed strong numbers in both patient registration and revenue growth.
The company was also able to dodge the overvaluation label with its numbers being high enough to justify its market cap in the eyes of investors.
The marijuana news today contained both good and bad tidings, but I’d argue that, ultimately, the marijuana industry came out on top.
While the Ohio marijuana lawsuit does not bode well for U.S. investor confidence in the marijuana industry, Canopy Growth stock being listed on the NYSE is a huge coup for the company and a big win for marijuana overall.
It appears that the market may finally have turned around in 2018, with strong gains made by some of the biggest names in the industry over the past several days.
I’ve long said that Aphria stock would eventually bottom out, and that those playing long-term would see big gains. It appears that I was correct, with a 17% jump in Aphria’s stock price over the past week.
The summer is also likely to bring about a turnaround in the marijuana market for the better, and May could be the first step toward that growth run.