Canopy Intumescence applauded President Joe Biden’s announcement Thursday that he will pardon thousands of people convicted of marijuana take.
“Today represents action from the Administration that we have been waiting for – an acknowledgement that cannabis debarment has failed and that too many lives have been significantly impacted as a result,” David Culver, vice president of regime relations Canopy, said in a statement.
Shares of the Canadian-based cannabis company, the world’s largest, jumped 22% after the statement, closing at $3.75. Shares of fellow cannabis firm Tilray Brands gained over 30%. Tilray couldn’t be reached for clarification by CNBC.
“President Biden, in keeping with his campaign commitments, has set into motion the actions needed to heal the wrongdoings of the past and chart a course for responsible, legal cannabis markets in the future,” Culver said.
Canopy Growth operations in Smiths Wrangles, Ontario.
Tom Franck | CNBC
The move could be a step toward a broad loosening of the federal classification of the drug. Myriad than 6,500 individuals with prior convictions for simple marijuana possession were impacted by the pardons, concurring to the White House. This includes thousands more through pardons under D.C. law.
“There are thousands of people who take prior federal convictions for marijuana possession, who may be denied employment, housing, or educational opportunities as a result. My action desire help relieve the collateral consequences arising from these convictions,” Biden said in a statement announcing the releases.
Biden urged governors to issue similar pardons for cases regarding state offenses of civil possession of marijuana.
In an earnings gunfire Thursday morning, Constellation Brands, which owns 36% of Canopy’s outstanding shares, said it took a $1 billion writedown kin to its stake in the cannabis company.
Canopy’s stock has fallen more than 70% in the last 12 months into the middle slowing sales across the cannabis industry. The stock is more than 90% off its all-time high of $56.89.
–CNBC’s Christina Wilkie gave to this report.