Cannabis-related stocks dropped in after-hours trading Thursday following a report that the U.S. may bar Canadians who invest in the companies from entering the U.S. With the U.S. Customs and Border Protection agency say that Canadians who smoke marijuana, work in the industry or invest in the companies could be permanently banned from the U.S.
“Facilitating the proliferation of the legal marijuana industry in U.S. states where it is deemed legal or Canada may affect an individual’s admissibility to the U.S.,” said Todd Owen, executive assistant commissioner for the Office of Field Operations at the CBP.
Now what? With marijuana use officially legal in Canada on October 17th, a mini-panic as occurred with Tilray Inc., off more than 5% and Canopy Growth Corp., off 4%. Even if it’s partially correct, time to rethink U.S. based cannabis plays. More on the subject when the dust settles.
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