President Biden’s announcement that he plans to pardon thousands of former prisoners convicted of marijuana possession — a move seen as a precursor to decriminalizing the drug on the federal level — sent cannabis stocks soaring on Wall Street.
Shares of Florida-based Trulieve Cannabis were trading as much as 47% higher at one point early Friday morning while Verano Holdings’ stock price jumped by some 35% just after the opening bell on Wall Street. Trulieve shares returned to earth, closing up 1.2%. Verano shares lost ground, ending down 5.9%.
Cresco Labs, which is headquartered in Chicago, saw its stock price surge by more than 38% on Friday morning before finishing up 9%.
A top executive at Canopy, whose stock spiked by some 22% after Biden’s announcement on Thursday, welcomed the president’s move.
“Today represents action from the Administration that we have been waiting for — an acknowledgement that cannabis prohibition has failed and that too many lives have been significantly impacted as a result,” David Culver, vice president of government relations Canopy, said in a statement.
“President Biden, in keeping with his campaign commitments, has set into motion the actions needed to heal the harms of the past and chart a course for responsible, legal cannabis markets in the future.”
Biden on Thursday announced that he is pardoning thousands of Americans convicted of “simple possession” of marijuana under federal law — a dramatic step toward decriminalizing the drug and addressing charging practices that critics say disproportionately impact people of color.
Biden’s move also covers thousands convicted of the crime in the District of Columbia.
He is also calling on governors to issue similar pardons for those convicted of state marijuana offenses, which reflect the vast majority of marijuana possession cases.
Biden, in a statement, said the move reflects his position that “no one should be in jail just for using or possessing marijuana.”
“Too many lives have been upended because of our failed approach to marijuana,” he added.
“It’s time that we right these wrongs.”
According to the White House, no one is currently in federal prison solely for “simple possession” of the drug, but the pardon could help thousands overcome obstacles to renting a home or finding a job.
“There are thousands of people who have prior Federal convictions for marijuana possession, who may be denied employment, housing, or educational opportunities as a result,” he said.
“My action will help relieve the collateral consequences arising from these convictions.”
With Post wires
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