Weed Week: US Democrats make it official — federal cannabis reform is on the agenda
Health & Biotech
Health & Biotech
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Domestic cannabis companies have begun the process of submitting applications to the TGA for over-the-counter CBD products.
But over in the US, developments around federal legalisation measures are still building in the wake of Joe Biden’s election victory.
This week, new Senate Majority Leader Chuck Schumer (D) made a formal commitment to pursue reforming US cannabis laws.
Schumer’s statement (along with two other senators’) carries extra weight now that the Democrats have a wafer-thin majority in the Senate, clearing the way for more legislation to reach Biden’s desk.
Biden has stopped short of advocating for full cannabis legalisation at the federal level (like Canada).
However, the new government is happy to let individual states make that decision.
And a Democrat proposal is likely to remove marijuana’s classification as a Schedule 1 drug, opening the door to additional research pathways.
Following Schumer’s comments, US marijuana stocks jumped again to continue their strong gains since the November election.
The NYSE-listed Cannabis ETF rose by almost 10 per cent on Tuesday to $US18.72, and has now more than doubled since the end of October.
Meanwhile closer to home, researchers at the University of Queensland released a study which flagged some problems with regular cannabis use.
The team investigated patterns of cannabis use across 20 years for 1,792 Australian high school students that were aged 15 in 1992.
“Overall, regular use of cannabis – more than weekly and especially daily use – was found to have harmful consequences, regardless of the age people began using it,” lead author Gary Chan said.
Turning to the ASX, the cohort of ASX cannabis (and cannabis adjacent) stocks tracked by Stockhead produced a mixed bag of results over the past week.
11 stocks posted a gain (with four double-digit returns), while nine stocks traded flat and 16 lost ground.
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Leading the pack in the month of January was Little Green Pharma (ASX:LGP), which ripped higher by 57 per cent over the past week and is up 61.9 per cent for the year.
The stock struggled for momentum after listing in February 2020, but is off to a flyer in 2021.
Recent momentum followed on from a market update in late January, when LGP said it’s been hired as the primary medicinal cannabis oil manufacturer for a major medicinal cannabis trial in France.