REUTERS / Amir Cohen
- Cannabis stocks jumped up on Monday after Governor Andrew Cuomo said New York was “very close” to legalization.
- The comments were made at a news conference on Monday afternoon, in which Cuomo added that “we have to end this year”.
- The shares of several marijuana sector ETFs rose up to 4% in Monday’s trading.
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Cannabis stocks rose on Monday after Governor Andrew Cuomo said New York is “very close” to legalizing the drug for recreational use.
Tilray and Aphria’s shares rose by as much as 14% and 12%, respectively, while marijuana ETFs such as ETFMG Alternative Harvest and AdvisorShares Pure Cannabis ETFs rose up to 4%.
“I think this [cannabis legalization] it should have been approved years ago, “Cuomo said at an afternoon news conference, before adding” we have to do this “.
“I think many people have been arrested, imprisoned and punished. Many of these people are black, Latin and poor. The injustice of the justice system is exaggerated,” added Cuomo.
Like many other states that have considered the benefits of marijuana legalization, Cuomo said the move could help increase revenue for the state’s deficit, which increased amid the COVID-19 pandemic.
But a BTIG analyst thinks Cuomo is pushing hard for marijuana legalization to distract recent sexual harassment charges against him. BTIG believes that a vote on the measure may take place before the April 1 due date for the state budget.
If New York legalizes cannabis, it will likely represent a seminal moment in cannabis reform and the investment movement, as the fourth most populous state would give its residents permission to consume the drug legally.