Marijuana News Today: U.K. Medical Marijuana Expands Global Pot Potential

Marijuana News Today

Marijuana News Today

The marijuana news today registers another big win for pot legalization as the U.K. has approved medical marijuana for prescription use.

The U.K. Home Office has announced that U.K. medical marijuana will be available for prescription use by fall. (Source: “Medical cannabis to be available on prescription in UK after being approved for use by government,” The Independent, July 26, 2018.)

The steady progression of countries relaxing their marijuana laws continues, with the U.K. representing another massive market opening up for marijuana companies to work within.

The U.K. is both far wealthier and more populous than Canada, making it another huge market that could lead to another huge boom among marijuana stocks, depending on how the supply agreement for cannabis are drawn up.


That’s the short-term gain. The long-term gain, of course, is that the marijuana legalization continues to spread and become normalized. As more countries enact regulations that are permissible of marijuana, other states will likely follow suit when they see not only does the sky stay situated when you legalize marijuana, but a good bit of tax windfall makes its way into the state coffers.

The move was prompted by several high-profile cases where patients were denied medical marijuana within the U.K., despite the drugs having potentially remedying effects on their illnesses.

“Recent cases involving sick children made it clear to me that our position on cannabis-related medicinal products was not satisfactory,” said U.K. home secretary, Sajid Javid.

“Following advice from two sets of independent advisors, I have taken the decision to reschedule cannabis-derived medicinal products – meaning they will be available on prescription. This will help patients with an exceptional clinical need.” (Source: Ibid.)

Unfortunately, Javid was adamant about how this is not opening the conversation on U.K. recreational marijuana legalization, adding that it was “in no way a first step to the legalization of cannabis for recreational use.”

Possession of the drug without a prescription is still very much illegal in the U.K., but Javid’s statement of course rings hollow. The normalization of the drug as a medicine is only going to sanitize the view of marijuana in the public’s imagination.

It may not be the last stepping stone on the way to U.K. recreational marijuana legalization, but it certainly is a stepping stone nonetheless. To call it anything else is being naive.

Just how much of an immediate impact this will have on marijuana stocks is hard to gauge. They may impose regulations that require the cannabis to be grown in specific locations for prescription use and the like, but if the market does indeed open up and we see an increased demand for pot, expect marijuana stocks to jump on the opportunity and see a boost to their value as a result.

CGC, ACBFF, & TLRY Stock Performance

Chart courtesy of

Canopy Growth Stock News

Although the marijuana news today is highly positive and reveals another breakthrough in the global pot marketplace, the pot stock market is far more of a mixed bag.

Canopy Growth Corp (NYSE:CGC) continues to struggle in July, despite this week having gotten off to a decent start for CGC stock.

I had been hopeful that Canopy Growth could use the momentum to turn around its weak performance of late, but the marijuana pullback that has largely hit industry-wide has kept the company on a steady decline these past few weeks.

In the last six days alone, CGC stock has tumbled about five percent. While this number isn’t calamitous, the downward trend since the Canadian marijuana legalization date was announced has seen a good chunk of CGC stock’s gains in 2018 erased.

I’m still bullish on Canopy Growth stock, however, especially as October 17 nears and we’ll see hype build back up again. In fact, this falloff in share value may be a blessing in disguise for those looking to buy more of the company before the rush builds toward October.

Of course, I think the remainder of 2018 will be a roller coaster for CGC stock, with big gains followed by stark corrections as legalization hits. But overall, the future of Canopy Growth Corp is solid.

Tilray Stock News

While many marijuana stocks have struggled this week, one continues to be on fire: Tilray, Inc (NASDAQ:TLRY).

The first ever marijuana company to have an initial public offering on the Nasdaq is back up, with gains nearing 60% since it went public a few short days ago.

Tilray stock had inched toward 80% in gains at one point, but was brought down in a steep pullback to 50%. It has since climbed almost double digits in the past couple of days.

TLRY stock is, of course, still in that honeymoon period, where much of the investment coming in is based on excitement and an investment crowd starved for marijuana stocks on major exchanges.

How long and sustainable these gains will be are hard to know, but what is certain is that a savvy day trader could certainly be cleaning up by playing Tilray stock well.

I can’t imagine these gains will be long-term and, as such, despite my general investing philosophy against it, there is an opportunity for short-sellers here. But it would be very risky, as the stock could conceivably continue to shoot upward for some time yet, although I doubt that will be the case.

Aurora Cannabis Stock News

The final marijuana stock we will be looking at today is another that has had a rough go of it as of late, Aurora Cannabis Inc (OTCMKTS:ACBFF, TSE:ACB).

Despite the acquisition of MedReleaf Corp (OTCMKTS:MEDFF, TSE:LEAF) churning along in the background, Aurora Cannabis Inc has been subject to the same drawback we’re seeing across the industry.

Worse yet, it is actually taking a bigger hit compared to several competitors. ACB stock is down almost 12% in the past six days, compared to CGC stock’s drop of five percent.

Aurora Cannabis has been struggling for much of 2018, and this recent pullback is only compounding on those problems.

But my outlook on Aurora Cannabis stock is bright, as Canadian marijuana legalization nears, if measured. I doubt it will perform as well as Canopy, but there’s still money to be made long-term in Aurora.

Analyst Take

The push for global marijuana legalization continues, with the U.K. being another huge victory for marijuana stocks.

As the drug becomes more and more easily accessible, we’re going to see the conversation continue to shift toward a positive outlook on pot. It’s a tried-and-true formula that we’ve seen take place in virtually every country that has legalized medical marijuana.

While the U.K. may not be as lucrative of a market as, say, the U.S. or Germany, it is still very much a big win for the marijuana industry to see their products prescribed by medical professionals.