RE:RE:Why Pot Stocks Up Today?Really not sure where you get your info. from, but Canadian major banks and Credit Unions have been providing loans to cannabis companies???
https://business.financialpost.com/cannabis/bmo-cibc-provide-80-million-loan-to-canopy-growth-affiliated-pot-company-pharmhouse
https://www.theglobeandmail.com/business/article-canadian-banker-snags-750-million-in-marijuana-business-as-rivals-say/
ap253 wrote: Your theory begs the question why Canadian pot stock can't get bank financing in Canada. And that's because of the risks involved. As a matter of fact, they can't even issue straight bonds at reasonable interest rates, which is why Canopy is toying with the REIT idea (although I think its a DUMB idea).
Bottom line: it's likely herd mentality at work here, people wanting to get in like hemming before it's too late. Just my opinion, of course. ledzep4u wrote: One of the reasons is that Fed Chairman Powell stated today to the Senate Banking Committee that clarrification would be "nice" on cannabis rules as it relates to banking. He stated that pot is illegal at the federal level, but more and more legal at the state level so clarrification should be provided as to banking rules.
In the US, cannabis companies can't deal with banks because it's illegal federally so it's all a cash business. In addition, they can't get insurance for the same reasons. It makes it very difficult to operate a business when you can't get banking services or insurance.
This is very good news because you now have the Fed Chairman talking about cannabis and wanting rules clarified as to banking.