At the Vice Presidential debate on Wednesday, Sen. Kamala Harris, the Vice Presidential hopeful running with Joe Biden, announced to the world her ticket’s plan to decriminalize cannabis at the federal level. “[W]e will decriminalize marijuana, and we will expunge the records of those who have been convicted of marijuana,” Harris said in the debate Wednesday.
According to Market Watch, the comments had a positive effect on cannabis stocks on Thursday morning. Cannabis ETF THCX gained 3.1 percent in early trading. Since its four-month low two weeks ago, Market Watch noted it’s now gained 11 percent.
Several individual stocks on the ETF have gained as well, including the U.S.-listed shares of Aphria Inc., which rose 9.5 percent, the ever-troubled Aurora Cannabis Inc., which gained 5.0 percent, Canopy Growth Corp., which saw a 6.4 percent gain, and Tilray, which rose 5.7 percent.
Even Constellation Brands, which has made a heavy investment into Canopy Growth and the cannabis market as a whole, gained 0.5 percent in early morning trading. It looks like the market is hopeful for a Biden-Harris presidency.
Cannabis stocks have a terrible September
Still, despite the good morning on Thursday, cannabis stocks pulled back sharply in September, according to the experts at New Cannabis Ventures. Their Global Cannabis Index lost all of its gains from July and August, ending “Q3 down 6.7 percent, decreasing 16.2 percent in September to 27.45.”
Even the “strongest” four companies on the Index only had minimal gains for the month, according to New Cannabis Ventures. 22nd Century Group (NYSE American: XXII) gained 8.6 percent, Innovative Industrial Properties (NYSE: IIPR) only gained 0.8 percent, GrowGeneration (NASDAQ: GRWG) gained a measly 0.1 percent, and Power REIT (NYSE: PW) jumped a couple of points, gaining 2.6 percent.
Meanwhile, the four weakest names on the Index really fell in September. According to New Cannabis Ventures, embattled Aurora Cannabis (TSX: ACB) (NYSE: ACB) dropped 52.6 percent, Mydecine Innovations Group (CSE: MYCO) (OTC: MYCOF) lost 51.6 percent, Akerna (NASDAQ: KERN) fell 39.8 percent, and Green Organic Dutchman (TSX: TGOD) (OTD: TGODF) dropped 32.6 percent.
Cresco Labs does responsible advertising
Cresco Labs (CSE:CL) (OTCQX:CRLBF), a multistate operator, announced the launch of a comprehensive advertising and marketing code. According to a statement, these new guiding principles will ensure the company “always markets and promotes its brands and products responsibly.”
The company developed what’s called Cresco Labs’ Responsible Advertising and Marketing Standards. They hope to “professionalize and revolutionize the U.S. cannabis industry.” Moreover, according to a statement, they wish to use the standards “to encourage partnership with other cannabis companies around responsible marketing, professionalize the advertising practices within the industry and create a robust marketplace of quality products.” The standards are available online at https://www.crescolabs.com/brands/#rams.
“Since the Company’s inception in 2013, we have been guided by a vision to bring a level of professionalism, ethics and hard-nosed business discipline to this emerging product category and industry, and it has been our mission ever since to normalize, professionalize and revolutionize cannabis,” said Charlie Bachtell, Cresco Labs’ CEO and Co-founder in a statement.
He continued: “That approach has guided us through seven years of incredible growth. As our house of branded products, retail brand and overall market reach grows, and cannabis becomes an important part of people’s everyday wellness, there is a need to advertise, market and communicate with the public. However, we must do so in a responsible and compliant manner that is disciplined, ethical and fact-based and upholds the high standards of conduct on which the company was founded. As we focus on building the most important cannabis company in the U.S., these standards will define how we conduct ourselves in our everyday marketing and advertising efforts, hold us accountable in all our work in this area, and hopefully serve as a north star for all other operators within our industry.”