Weed week: Canberra leads the way on cannabis, makes pot possession legal

All eyes were on the nation’s capital yesterday, as the ACT became the first Australian state or territory to legalise marijuana possession.

The new laws are expected to come into effect on January 31, 2020.

The bill, proposed by Labor backbencher Michael Pettersson, allows for a maximum of 50 grams per person and four plants per household.

The law was passed by the ruling coalition in the ACT Legislative Assembly, comprised of 12 Labor members and two greens.

The shadow Liberal government opposed the bill, which will also run in conflict with Commonwealth laws which deem recreational cannabis use illegal.

Commentators have suggested that police officers will have discretion over how they interpret the laws with respect to recreational cannabis use.

ACT Attorney-General Gordon Ramsay said in question time earlier this week that he could intervene if a recreational cannabis case was prosecuted under Commonwealth law in an ACT court, but not if the action was brought in a federal court.

It will also be possible for the federal government to seek to overrule the ACT laws with its own revised legislation.

Separate from recreational cannabis, medicinal marijuana has so far been legalised in all states and territories except SA and the NT.

Meanwhile, we turn to Canada, where THC (the psychoactive component of cannabis) is legal at the federal level.

The Independent reports that Quebec-based distributor Health Canada was forced to recall more than 16,000 products because customers weren’t getting high enough.

A labelling mixup meant some customers were receiving products with 12.2 per cent THC, while others were only getting 6.36 per cent.

So, as global regulatory developments remain ongoing (at various rates of speed)…

Here’s how Aussie pot stocks performed last week

Of the 33 pot or pot-adjacent stocks tracked by Stockhead, just nine posted a weekly gain last week. Another eight were flat while 16 finished in the red.

Medical tech company Rhinomed (ASX:RNO) led the pack this week, after storming ahead on Monday when it came out of a trading halt fresh off a new $6m share placement.

The company, perhaps most well known for its Mute anti-snoring sleap apnea treatment, flagged some big plans for its US distribution strategy.

It plans to roll out four new cannabidoil (CBD) products in 20,000 and boost its store network from 11,000 to 30,000.

On the flip side, four stocks suffered double-digit declines during the week led by CannPal Animal Therapeutics (ASX:CP1). The company fell back further from its 2019 high of 20c, as it continues R&D efforts for marijuana-based therapeutic treatment for pets.

Below is Stockhead’s latest summary of weekly and annual price performance for ASX-listed cannabis stocks:

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