Canopy Growth stock surges on potential U.S. cannabis Banking Act vote

• Canopy Growth (TSX:WEED) stock added more than 50 per cent by midday Monday, adding to its summer 2023 rally
• WEED stock has risen 100 per cent over the past three months, the most recent jump was its nearly 23 per cent rise on Friday.
• This comes as the Senate Banking Committee moves to vote on the Secure and Fair Enforcement (SAFE) Banking Act, which is proposed legislation that aims to remove penalties for companies that provide banking and other financial services to legitimate cannabis-related businesses
• Canopy Growth stock is trading at C$1.99 per share as of 2:00 pm ET

Canopy Growth stock (TSX:WEED) added more than 50 per cent by midday Monday, adding to its summer 2023 rally.

WEED stock has risen 100 per cent over the past three months, the most recent jump was its nearly 23 per cent rise on Friday. Though WEED stock is down 60 per cent from this time last year, it has skyrocketed 259.2 per cent in past month alone.

Several cannabis stocks have also seen a boost in performance, many pointing to news that the U.S. government is reconsidering how it classifies marijuana. The Department of Health and Human Services (HHS) has reportedly recommended reclassifying marijuana as a lower-risk Schedule III drug, from Schedule I, easing restrictions on businesses operating in the sector.

This comes as the Senate Banking Committee moves to vote on the Secure and Fair Enforcement (SAFE) Banking Act, which is proposed legislation that aims to remove penalties for companies that provide banking and other financial services to legitimate cannabis-related businesses. The vote is scheduled for Sept. 18. Currently, traditional financial institutions do not facilitate cannabis-related transactions because of marijuana’s federal illegal status.

The Horizons Marijuana Life Sciences Index ETF (TSX:HMMJ), which tracks the performance of a basket of North American publicly listed companies with significant business activities in the marijuana industry, was also trading higher, up 7.1 per cent by midday.

Canopy Growth is a leading North American cannabis and consumer packaged goods company. Its brands include Doja, 7ACRES, Tweed, Deep Space, BioSteel, This Works, Martha Stewart CBD and Storz & Bickel.

Canopy Growth stock is trading at C$1.99 per share as of 2:00 pm ET.

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