Dual-listed North American cannabis stocks are both buds and duds Thursday afternoon, with shares surging on Canadian exchanges and falling on US exchanges.
A possible explanation for the duality may be the uncertainty surrounding the potential upcoming Congressional vote on the US farm bill.
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The federal policy dates back to The Great Depression, put in place by President Franklin Delano Roosevelt as way to subsidize US farmers.
While the full details of the farm bill have yet to be released, there’s talk of hemp and hemp-derived CBD becoming federally legal in the US.
Hemp was illegal in Canada under the Opium and Narcotic Drug Act of 1938, but Health Canada has allowed limited production for scientific research purposes since 1961, according to the government’s website.
Aurora Cannabis Inc (NYSE:ACB) shares surged nearly 10% to C$6.82, but dipped about 6% to US$5.08 on the New York Stock Exchange.
The North American Marijuana Index fell more than 6% to US$216.39 in Thursday afternoon trading.
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