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Buds & Duds: Dual-listed cannabis stocks surge in Canada, but sink in the US ahead of farm bill decision

The farm bill may legalize hemp and hemp-derived CBD in the US on the federal level
Cannabis plant in the sunlight
Shares of Aurora Cannabis, Cronos, Canopy Growth and MedMen were rising on Canadian exchanges

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.

READ: Chemistree Technology acquires global rights to Sugarleaf cannabis brand outside Washington State

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.

Shares of Toronto-based Cronos Group Inc (NASDAQ:CRON) rose more than 7% to C$13.89, but fell about 4% to US$10.31.

Canopy Growth Corporation (TSE:WEED) (NYSE:CGC) shares were up about 6% to C$39.63, but slipped more than 6% to US$29.53.

MedMen Enterprises Inc (CSE:MMEN) (OTCQX:MMNFF) shares jumped nearly 14% to C$3.87, but sank  about 8% to US$2.94.

The North American Marijuana Index fell more than 6% to US$216.39 in Thursday afternoon trading.

 

Contact Lenore Fedow at [email protected]

Follow her on Twitter@LenoreMariee

 

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