Good luck Chuck – Schumer’s ‘bold agenda’ email confirms legalisation’s time is nigh
Health & Biotech
Health & Biotech
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Last week the US cannabis industry continued to shed many of the gains generated earlier this month during the retail investor influx that emerged in the aftermath of the GameStop fiasco.
This phenomenon led to a sector-wide shockwave that caused the performance of the ‘Horizons Marijuana Life Sciences Index ETF’ (HMMJ) — which many see as a benchmark for the North American cannabis market — to slide lower for the second week in a row, as investor enthusiasm continued to wane.
However, another rally may soon be on the cards, after the Democratic Senate Majority Leader, Chuck Schumer, recently reiterated his commitment to pursuing further cannabis legalisation measures.
Schumer outlined his vision in a fundraising email that was sent to his supporters late last month, which detailed what he describes as the Democratic Party’s “bold agenda for change this year.”
“Voters in four more states this election voted to legalize adult recreational use of marijuana, and that proves once again it’s past time to work to undo the harm done by misplaced priorities, particularly in Black and brown communities. It’s time to decriminalize marijuana nationally,” Schumer stated.
Although the performance of the HMMJ has fallen, it still remains relatively strong — recording an 83% gain on the six-month performance chart — while also significantly outstripping the Australian Cannabis Index, which is currently sitting only marginally higher than it was in September 2020.
Meanwhile, Australia’s All Ordinaries and the S&P 500 both continued to trend upward, showing an increase of 13.6% and 12%, respectively.
The Australian pharmaceutical producer, Creso Pharma (ASX:CPH), also put on an impressive performance this month, after the company announced that it had partnered with CERES Natural Remedies to enter the US market.
This was great news for investors, as the deal will give Creso access to more than 50,000 distribution outlets throughout the US, with a current a sales target of $5 million within the first two years of the agreement.
“We will continue to monitor regulatory and policy shifts in the US to ensure the Company and CERES are primed for launch and expect first sales to add to the Company’s revenue streams,” Creso Pharma non-executive chairman Adam Blumenthal said.
“Creso has a number of exciting growth initiatives across all key operating business pending and we look forward to updating shareholders as they materialise in the coming months.”
The Green Fund’s Australian Cannabis Index allows investors to benchmark top players in the Aussie cannabis space against the S&P500, the AORD, and HMMJ, giving them an overview of the health of the industry Down Under.