ASX pot stocks keep climbing after US House vote; now up 52 per cent in a month
Health & Biotech
Health & Biotech
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ASX pot stocks have continued their surge following the latest move towards marijuana decriminalisation in the US.
One of the many catalysts for cannabis sector hype in recent months has been the push for liberalisation in the US – which would create a significant market.
Joe Biden promised it would happen under his presidency and his victory led to several ASX pot stocks stocks rising.
But over the weekend the US House of Representatives passed the Marijuana Opportunity Reinvestment and Expungement (“MORE”) Act. It erases cannabis from the US Controlled Substances Act and pardons non-violent federal marijuana convictions.
Admittedly, the Democrat-sponsored bill has no chance of becoming law while Republicans hold the Senate.
But it nonetheless reflects the huge shift on cannabis sentiment in the US and also globally. Yesterday, more than half of ASX pot stocks rose. More symbolically not a single stock is down in the last month and the average gain is 52 per cent.
A number of ASX pot stocks lauded the move.
One was Creso Pharma (ASX:CPH) which was the sector’s biggest winner yesterday (gaining over 25 per cent) and on a monthly basis (surging 390 per cent).
“Creso is very well positioned to capitalise on opportunities arising from the market in the USA, including expanding distribution of its existing cannabis products through the scale up to its operations in Canada and Switzerland,” Creso Pharma co-founder Boaz Watchtel said.
“As a listed vehicle with access to capital, Creso is also an attractive partner for merger and acquisition opportunities, and, following the appointment of Canopy Growth founder Bruce Linton to Creso earlier this year, the company looks forward to exploring such opportunities for the benefit of its shareholders.”
Another stock that welcomed the move was Bod Australia (ASX:BDA).
While this company is more focused on the UK right now, it intends to enter the US market shortly.
It noted that the US’s federal ban was a disincentive to invest but once lifted, enormous opportunities could present themselves.
“Passing the MORE Act through the US House of Representatives is a historic event and a key step in decriminalising cannabis,” said Bod CEO Jo Patterson.
“While major policy reform may not happen overnight, the House’s vote lays a very strong foundation for future change and further highlights that acceptance for cannabis and CBD-derived products is at an all time high.”
Medlab Clinical’s (ASX:MDC) CEO Sean Hall welcomed the move.
“We always knew it was coming – the question was simply when,” Dr Hall said.
“This now at least brings a common denominator over the top and removes fear of prosecution and opens businesses up to full legislative use from banking to insurance – and I think that’s good for business in general.”
However he warned this wasn’t a blank cheque for ASX pot stocks to make any claims that weren’t yet clinically proven.
“The moment a cannabis marketer makes a health claim on the product – unless it has gone before and been approved by the FDA; they are breaking the law irrespective of this bill,” Dr Hall said.
“Because those claims for human use are marshalled by the FDA and take them seriously.”
At Stockhead we tell it like it is. While Creso Pharma is a Stockhead advertiser, it did not sponsor this article.