Q: Hi there, now that Trump and the Republicans are in full control for the next 4 years, where does that leave the cannabis industry going forward in the US?
Were the Republicans ever in favour of legalizing the industry in the US on a federal level?
What is your opinion on the industry going forward in the US now, as far as legalization is concerned, federally?
Any thoughts on what happens to all our Canadian companies wanting the market to open up in the US, WEED, TLRY, etc etc
Thanks!
Were the Republicans ever in favour of legalizing the industry in the US on a federal level?
What is your opinion on the industry going forward in the US now, as far as legalization is concerned, federally?
Any thoughts on what happens to all our Canadian companies wanting the market to open up in the US, WEED, TLRY, etc etc
Thanks!
5i Research Answer:
The Republican party as a whole has not historically prioritized federal cannabis legalization. While broader legalization might stall, there could be some progress on targeted reforms, like improving banking access for cannabis companies. State-level initiatives for medical and recreational cannabis have shown strong momentum, though.
Without federal legalization, Canadian companies remain restricted from operating in the US cannabis market. We continue to see the sector struggling, until a major shift in US laws. Most of these Canadian cannabis companies have bad free cash flows and weak demand. Overall, we would prefer to watch from the sidelines until a shift in momentum is visible.