CA - Pot stocks set to extend gains as Biden calls for marijuana review

After President Joe Biden’s latest comments on cannabis reforms sparked a rally in the shares of U.S. Multi-State Operators and Canadian Licensed Producers Thursday, the beaten-down sector is poised to extend gains on Friday.

Notable gainers in the pre-market Friday include Canadian L.P.s: HEXO Corp. ( NASDAQ: HEXO ) and Aurora Cannabis ( ACB ).

Cannabis-related ETFs AdvisorShares Pure Cannabis ( YOLO ), AdvisorShares Pure U.S. Cannabis ETF ( MSOS ), and Global X Funds - Global X Cannabis Etf ( POTX ) are on the rise after a sharp YTD selloff.

Notable decliners include Tilray ( TLRY ), which is set to report its Q1 FY21 financials in the pre-market.

In a statement, Biden pardoned all those convicted of all prior federal offenses of simple possession of marijuana and ordered U.S. regulators to review how the drug is classified.

The U.S. Drug Enforcement Administration currently lists cannabis alongside heroin and LSD as a Schedule I substance.

Biden’s remarks have rekindled hopes of federal legalization of marijuana against a backdrop of favorable legislative setup ahead of midterm elections.

The Cannabis Administration and Opportunity Act, a key piece of marijuana reform legislation, is currently under Senate review.

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