The Globe and Mail reports in its Wednesday edition that call it the erosion of the Jeff Sessions valuation gap. A Bloomberg dispatch to The Globe says that U.S.-focused cannabis stocks, once considered a risky play on a potentially dodgy product, are seeing heightened levels of investor interest while their Canadian peers drift back to Earth.
This is shrinking the discount for U.S. cannabis companies that was exacerbated in January when Mr. Sessions, the U.S. Attorney-General, said he would reverse an Obama-era policy that helped states legalize recreational marijuana. As more states including Massachusetts and New Jersey push ahead regardless, investors are becoming more comfortable with the sector, buying up Canadian-listed companies with expanding U.S. businesses at the expense of pure-play Canadian pot stocks that had soared until this year.
Experts say that there is an element of FOMO -- fear of missing out -- and so a lot of parked money could soon join the market. The top performing stock on the BI Canada Cannabis Competitive Peers Index is iAnthus Capital Holdings, which owns and operates cultivators, processors and dispensaries in six states. It has gained 144 per cent this year.
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