New York Gov. Cuomo looks to marijuana to plug budget deficit
New York Governor Andrew Cuomo laid out a plan to legalize marijuana for adult recreational use in 2021 in order to spur economic activity, but the CEO of the National Cannabis Industry Association warns that taxes can’t be too high. FOX Business’ Kristina Partsinevelos with more.
Canopy Growth Corp. is preparing for the possibility that major cannabis reform takes place in the U.S. over the next two years now that Democrats control the White House and both chambers of Congress.
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Such reforms could present the company to enter the U.S. THC market before the end of 2021. THC is the main psychoactive compound in cannabis that makes users feel high.
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“We anticipate that this legislation will include comprehensive reform to ensure restorative justice, protect public health and implement responsible taxation while ending cannabis prohibition,” Canopy Growth CEO David Klein said on the company’s quarterly conference call on Tuesday.
Sens. Chuck Schumer of New York, Corey Booker of New Jersey and Ron Wyden of Oregon, all Democrats, last week said they would work towards ending federal prohibition of marijuana which unfairly targets minorities.
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The company’s government relations team is “working very closely with key members of Congress” on legislation that would both address social-justice reform and provide tax revenues and jobs for a U.S. economy that is still recovering from its sharpest economic slowdown of the post-World War II era, Klein said.
Canopy Growth and other producers and organizations announced Monday the formation of the United State Cannabis Council which will provide a unified voice on regulations, decriminalization, and expungement of nonviolent criminal records, diversity and inclusion, and more.
Canopy has been investing in infrastructure, including expanding its manufacturing footprint, in anticipation of U.S. cannabis reform.
The company also has reached an agreement to increase its conditional stake in the integrated cannabis operator TerrAscend, which has operations in a handful of U.S. states, to about 20%.
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The Smith Falls, Ontario-based Canopy Growth reported Tuesday its net loss in the three months through December swelled to 904.4 million Canadian dollars from 91.4 million the year prior amid impairment and restructuring charges, some of which were tied to the closing of production facilities.
Canopy Growth shares were up 78% this year through Monday.
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