Marijuana News Today: Major Vote Could Determine Fate of Pot Stocks in the Near Future

marijuana news today 7 june
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Marijuana News Today

Again in the marijuana news today is something that people who have been paying attention are familiar with: politics having a profound effect on the marijuana industry.

The most recent cannabis news is a vote on Canadian marijuana legalization undertaken by that country’s senate.

The final vote will be on a bill that was first passed by the House of Commons, but now with 34 amendments. (Source: “Senate vote on changes to marijuana legalization bill looms amid resistance,” Toronto Star, June 5, 2018.)

Should the bill pass with said amendments, it will be sent back to the House, where it will undergo another vote—although, with the Liberal Party holding the majority of seats, it will likely pass in short order.

Unless, of course, they find one of the amendments to be unacceptable. At the moment, however, there’s no word on whether any of these amendments would prove significantly controversial enough to derail the legislation.

Not all of the 34 amendments are due to pass with the bill, some of which include regulation on impaired driving and growing standards. Still, the Senate does have the power to potentially derail this bill, which is something that I’ve said for a long time would be calamitous for pot stocks.

The stock market is not a patient beast, and every delay will result in hits to stock prices. The market has already factored legalization into its projections for marijuana stocks. The bill being pushed back could be devastating.

It’s worth noting that Prime Minister Justin Trudeau has come out in strong support of the bill and has all but assured that it would be passed by the end of the summer.

Of course, Trudeau does not have total control over the bill’s journey, but he does have significant sway in Parliament.

“We will create a controlled and legalized framework for marijuana before the end of the summer,” said Trudeau in a recent interview. (Source: Ibid.)

There’s even word that Canadian lawmakers would not adjourn for the summer until the pot legislation has been passed, a senior government official told Bloomberg. This means that delay tactics mounted by the opposition are unlikely to succeed.

It appears that the bill will pass today, and that the marijuana legislation will be headed into codified law by the end of the summer.

Today’s vote marks the last effort of the opposition to stop (highly unlikely) or delay the bill.

One final layer to this story is that the Senate of Canada is not elected, but rather appointed. If the senators defeat or significantly delay the bill, that would mark one of the few times that the Senate was not a rubber stamp for Canadian policy.

It would also mark an interesting collision between the will of the people as represented by the House of Commons and the will of appointed gatekeepers.

But all that legal drama is secondary to what the end result of today’s vote will be.

If the bill passes, marijuana legislation is almost certainly going to land by late summer.

Should it fail, we’ll likely see a large marijuana stock correction loom in the near future.

OrganiGram Stock News

Besides the looming marijuana vote, the marijuana news today features positive movement in the pot stock market.

The first company we’ll look at is OrganiGram Holdings Inc
(OTCMKTS:OGRMF, CVE:OGI).

One of the better performers of the year, OrganiGram stock is up nearly 37% year-to-date. Over the past five days, the company has leaped by over 13%.

Chart courtesy of StockCharts.com

 

This medical marijuana producer is one of the stronger marijuana companies around. OrganiGram is also one of the better marijuana penny stocks to watch, with a price under $5.00 and a market cap of about $550.8 million.

It’s one of the smaller marijuana companies we’ve taken a look at in our marijuana news briefings, but OrganiGram stock is one of the stronger performers in the industry overall.

In fact, its smaller size may benefit the stock price as many investors still fear overvaluation and inflated market caps. OrganiGram has, to this point, been able to avoid serious concerns of overvaluation, which is one of the main reasons it was able to weather the marijuana correction so well.

The company recently announced that it received an expanded cultivation license from Health Canada for a previously announced expansion.

The company’s production capacity following its expansion is projected to be 36,000 kilograms per year. (Source: “Organigram Gets the Green Light for Cannabis Expansion,” SmallCap Power, June 6, 2018.)

CGC Stock News

Back to a more familiar face in the marijuana news: Canopy Growth Corp (NYSE:CGC) continues to bring in strong performances.

The company is up nearly nine percent in the past five days, with June being kind to the marijuana industry in general, but particularly to CGC stock.

The company’s relatively new presence on the New York Stock Exchange (NYSE) means that there’s still going to be a feeling-out period, when the stock will be prone to rapid rises and falls.

But should the summer pan out as I believe it will, expect to see big things from CGC stock.

At the moment, the company benefits from its strong market position, its unique status as one of two marijuana stocks listed on major U.S. exchanges, and from having one of the largest cannabis production capacities in the world.

Aphria Stock News

Another big mover in the marijuana news today is Aphria Inc
(OTCMKTS:APHQF, TSE:APH).

The company has had some major developments this news cycle, including an announcement this week that it had approved a CA$55.0-million capital project to build what it’s calling an “Extraction Centre of Excellence” in Leamington, Ontario. (Source: “Aphria to build state-of-the art Extraction Centre of Excellence,” Cision, June 6, 2018.)

The project will be able to produce an estimated 200,000 kilograms of cannabis annually when completed.

The company also signed a deal to invest in a cannabis production company based in Lesotho.

For those of you unfamiliar with the small African country, it lies in the southern region of the continent, and is likely to serve as a base of operations for future marijuana sales across Africa. (Source: “Aphria Forms Landmark Venture With South African Company Verve Group Of Companies,” Aphria Inc, May 28, 2018.)

On top of those two developments, Aphria stock is up a hair above eight percent over the past five days.

Analyst Take

The marijuana news today is about both the future and the present.

The present shows a strong build-up in the marijuana industry, with gains being seen across the board. The future, however, rests in the hands of politicians.

The Senate’s vote today could have a profound effect on marijuana stocks for the next few months. In fact, I believe that the outcome of this vote will be the most significant event for the marijuana industry all summer.

As such, it’s important for marijuana stock bulls to be up to speed on the goings on of Canadian marijuana legalization, starting with the outcome of today’s vote.