In reaction to the troubling news yesterday that U.S. Attorney General Jeff Sessions is rescinding federal marijuana protections, Canadian licensed producers are distancing themselves from any hint of American business.
On Friday morning, Canopy Growth Corporation issued a press release reminding its Canadian and international investors that the cultivator only conducts business where they are welcome.
“Canopy Growth Corporation wishes to reiterate its commitment to only conducting business in jurisdictions where that conduct is federally legal,” said the company. “Conducting activities which are federally illegal, or investing in companies which do, exposes the company to increased risk of prosecution.”
Although Canopy expressed its views in no uncertain terms, they did take the time to point out its executives do not see eye to eye with the Attorney General’s decision. The company added that the policy change in America will only benefit Canadian marijuana producers because it keeps the U.S. out of the international cannabis landscape.
“We want to make our position as clear as possible,” said founder and CEO Bruce Linton. “While Canopy does not support continued cannabis prohibition, it is management’s view that confusion surrounding federal cannabis laws in the United States presents advantages for Canopy Growth, not risks. We are confident in our position because we have exclusively focused on ethical, responsible, and legal cannabis opportunities across the globe and not in the United States.”
Aurora Cannabis, arguably Canopy’s biggest competitor, shared the same opinions on the subject. Executive vice president Cam Battley called the U.S. move “misguided public policy,” but also agreed that this can only be good news north of the American border.
“It cements the fact that we will not be seeing, for the foreseeable future, well-capitalized U.S. competitors as we expand our operations around the world,” said Battley. “And it just prolongs that unusual situation, where large-cap Canadian cannabis companies have the world to ourselves.”
Several Canadian cannabis stocks dropped double digits after Sessions’ announcement but rebounded by the end of the trading day.