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Friday Night and IAnthus Capital Holdings suggest action unlikely after US govt's cannabis memo

US Attorney General Jeff Sessions last week said he was rescinding policy brought in by former President Obama
Friday Night and IAnthus Capital Holdings suggest action unlikely after US govt's cannabis memo
cannabis plants

US-focused cannabis firms have come out suggesting action is unlikely following the US Department of Justice's (DOJ) decision last week on how to deal with the pot industry.

US Attorney General Jeff Sessions said he was rescinding policy brought in by former President Obama, which offered protection to states that have legalized marijuana as long as they follow guidelines.

READ: High times for cannabis stocks as California becomes sixth state to sell drug for recreational use

Nevada and recreational weed focused Friday Night Inc (CNSX:TGIF) noted that the memo, known as the Cole memo, was intended "solely as a guide," not a directive, and leaves the enforcement decisions up to the U.S. Attorneys in their respective states.

"Friday Night believes that given the lack of direction in the memorandum and the support of the Trump administration of states' rights, the authorities will defend the states' rights to regulate, not criminalize cannabis," it said in a regulatory statement. 

The company added that it considers it unlikely that local federal prosecutors will take action in those states where the legalization of cannabis has already been implemented.

Friday Night added that it does not expect any material changes to its current and future initiatives and it will continue with expansion plans in and outside Nevada.

READ: iAnthus Capital argues against turning the clock back 20 years on marijuana laws

Meanwhile, iAnthus Capital Holdings Inc (CNSX:IAN) said on Friday: "The regulated marijuana industry has created tens of thousands of American jobs and provided hundreds of millions of dollars in needed tax revenue to state and local governments, while at the same time serving to disintermediate the black market that has existed since the beginning of the federal marijuana prohibition.

"Turning the clock back 20 years and reopening the door to criminal cartels are counterproductive and serve no practical purpose."

The firm added: "... we would expect that today's action will have little or no material impact on federal prosecution priorities in states that have adopted regulated medical and/or adult-use marijuana programs."

iAnthus shares gained 7.91% on the day to C$3.41, while Friday Night Inc eased around 5% at C$0.93.

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