The abrupt resignation of Jeff Sessions has sent cannabis stocks rising rapidly, possibly the biggest marijuana news story to come out of the 2018 U.S midterm elections.
Sessions announced his resignation earlier today, a move that was not expected, and as such sent surging rises into many cannabis stocks helping them regain ground after the last few weeks of bearish trading within the sector.
“The entire space is now rallying on the Sessions news,” said managing director Russell Stanley at Beacon Securities. “The industry viewed Sessions as a major obstacle to cannabis legalization and so this risk has now been removed – the industry, especially companies that derive bigger operational benefits from the U.S., are responding to that.”
The most significant increases came from Vancouver-based Tilray Inc (TSE: TLRY), which gained 30.6 percent in just a single trading session. This marks its biggest gain since September 19th when its shares almost doubled.
Other major players in the sector such as Aurora Cannabis (TSE: ACB) and Canopy Growth Corp (TSE: WEED) have also seen significant gains of around 7 percent. As well as Aphria (TSE: APHA) which increased by 5 percent.
Former U.S. Attorney General Jeff Sessions resignation is in part the result of four states which voted to legalize both recreational and medical marijuana with Michigan going all out and legalizing the possession, use, and cultivation of cannabis for citizens who are at least 21 years old.
Ken Shea of Bloomberg Intelligence acknowledged the benefit of the news for the cannabis legalization movement. “[Sessions] was the biggest foe in the administration,” Going on to say, “This might give Trump a little more wiggle room to be more cannabis oriented.”