Canadian cannabis names lead a rebound in pot stocks in early trading as they extend gains on Friday in reaction to an upcoming House vote to legalize marijuana in the U.S.
The stocks turned higher near the market close Thursday on the news that the U.S. House of Representatives would take up the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act on Monday. Sponsored by House Judiciary Committee Chairman Jerrold Nadler (D-NY), the bill, among others, aims to remove cannabis from the list of federally controlled substances.
Notable gainers in the pre-market include Tilray (NASDAQ:TLRY), Canopy Growth (NASDAQ:CGC), Aurora Cannabis (NASDAQ:ACB), Sundial Growers (NASDAQ:SNDL), and HEXO (HEXO), with gains exceeding 10%. Other Canadian names, including Cronos Group (CRON) and OrganiGram Holdings (OGI), are also trading higher.
A previous version of the bill cleared the House floor but stalled on the Senate shortly after the federal election in 2020. The latest attempt comes ahead of the November midterm elections.
Last November, pot stocks led by U.S. Multi-State Operators rallied in reaction to a similar bill sponsored by Republican congresswoman Nancy Mace (R-SC). The States Reform Act has yet to receive a hearing in Congress.