- The bill introduced by Senate Majority Leader Chuck Schumer to legalize marijuana on the federal level did not have enough votes to pass, the Senator said this week.
- With the Cannabis Administration and Opportunity Act facing an uphill battle to become law, the shares of multi-state operators and their Canadian rivals witnessed a selloff.
- However, the Canadian marijuana plays such as Tilray (TLRY -2.1%), HEXO Corp. (HEXO -3.3%), Aurora Cannabis (ACB -2.3%), and Sundial Growers (SNDL +0.6%) have fared worse over the past five-day period.
- Meanwhile, David Klein, the CEO of Canopy Growth (CGC -1.8%), called the draft legislation "really positive" in an interview with Yahoo Finance.
- "For me, the bill just represents maybe the beginning or a new beginning of a legislative path to get it done," Klein said, adding that he would like to see incremental progress on federal reforms.
- In April, Bank of America cited the potential legalization of cannabis at the federal level as a reason for their buy ratings on Tilray and Canopy Growth.
