Why Cronos Group, HEXO, OrganiGram, and Other Marijuana Stocks Soared Today
Marijuana stocks skyrocketed on Friday as vote counting in several states pointed increasingly toward a victory for Democratic candidate Joe Biden. By close of trading, shares of Cronos Group (NASDAQ: CRON), OrganiGram Holdings (NASDAQ: OGI), and HEXO Corp (NYSE: HEXO) were up 16%, 18%, and 24%, respectively.
Biden and his running mate Kamala Harris have promised to decriminalize marijuana at the federal level. A notable step toward full-scale legalization, decriminalizing marijuana would likely also make it easier for cannabis companies to operate in the U.S. Many banks have shied away from providing financial services to marijuana-related businesses for fear of running afoul of federal law. Decriminalization might make banks more willing to serve cannabis companies.
Marijuana stocks rose sharply on Friday as investors grew more optimistic about the potential of the U.S. cannabis industry. Image source: Getty Images.
Source Fool.com
