Why Cresco Labs' Shares Jumped 24.37% on Thursday
Shares of multistate cannabis operator (MSO) Cresco Labs (OTC: CRLBF) rose 24.37% on Thursday. The stock closed at $2.65 on Wednesday and opened at the same price on Thursday. Its shares rose to a high of $3.60 late in the afternoon before closing at $3.29. The stock is down more than 31% this year.
Cresco Labs and other cannabis stocks got a jolt late in the day when President Biden said he was pardoning all prior federal offenses for simple marijuana possession. The thought is that the move is just the beginning of a public focus on federal marijuana legalization. That would open doors for current cannabis companies and obviously make it more likely that individual states will follow by legalizing medical and adult-use sales of marijuana. This is particularly good news for MSOs such as Cresco, because it will allow them to transport product across state lines, giving it stronger inventory control while reducing costs.
Cresco was hardly the only MSO to get a bump from the news as Green Thumb Industries was up 30.33%, Trulieve Cannabis was up 36.02%, Curaleaf Holdings rose 33.12%, and Canopy Growth jumped 22.15%.
Source Fool.com
