Pot producers gain as cannabis banking bill is reintroduced

SNDL

27/04/2023 11:07

** U.S.-listed shares of cannabis firms rise premarket after
a cannabis reform bill is reintroduced in Congress, with pot
stocks tracker AdvisorShares Pure US Cannabis ETF  MSOS.P  up
~13%
    ** Bipartisan Senate and House lawmakers have reintroduced
the Secure and Fair Enforcement (SAFE) Banking Act to free up
banking services for the cannabis sector
    ** U.S.-listed shares of Canopy Growth Corp  CGC.O  up
10.24%, while Cronos Group Inc  CRON.O  and Tilray Inc  TLRY.O 
jump 4.05% and 6.88%, respectively
    ** Aurora Cannabis Inc  ACB.O  and SNDL Inc  SNDL.O  up
between 0.5% and 3.65%
    ** The bill, which has been revised since last Congress
session, will allow banks to provide services to cannabis
companies in states where it is legal
    ** As of April 2023, 22 U.S. states have legalized
recreational use of marijuana and 41 states allow use of medical
cannabis
    ** The cannabis sector generated ~$26 bln in legal sales
last year, according to cannabis analytics company Headset
    ** Cowen analyst Jaret Seiberg said, "There is a path for
SAFE to become law in this Congress, though the hurdles remain
high"


 (Reporting by Mrinalika Roy in Bengaluru)
 ((mrinalika.roy@thomsonreuters.com;))