Today, legalization discussion is once again heating up in the cannabis sector. A number of cannabis stocks including Tilray (NASDAQ:TLRY), Canopy Growth (NASDAQ:CGC), Aurora Cannabis (NASDAQ:ACB), GrowGeneration (NASDAQ:GRWG) and Sundial (NASDAQ:SNDL) are higher today. These stocks are all up between 4% and 7% at the time of writing.
Investors may be well-aware of the catalysts underpinning this rally. Since the President Joe Biden won the White House and Democrats nabbed a Senate majority, legalization has been the key catalyst cannabis investors have pointed to.
Today, this catalyst has some new life.
Let’s dive into the big news that’s sending these stocks higher today.
Federal Legalization Bill Sending Cannabis Stocks Soaring
Various sources today are indicating the House Judiciary Committee Chairman Jerrold Nadler will be refiling a cannabis legalization bill this week.
This legalization bill coincides with work in the Senate already underway to pass its own version of the bill. Various changes are being worked through as we speak.
Additionally, work on various measures which will aid the passing of this federal legalization bill are underway. Texas has passed bills to lower penalties for marijuana concentrates and conduct studies on the potential benefits of psychedelics for those in the military. Illinois has approved a bill expanding marijuana licensing. And Ohio lawmakers are hearing pleas from activists attempting to get decriminalization measures on ballots this year.
Amid this broader bullish backdrop, there is also company-specific news for a couple of the aforementioned cannabis players.
Today, Aurora Cannabis began trading on the Nasdaq Exchange. This move from the New York Stock Exchange had been previously announced. However, investors seem to like the finality of today’s announcement.
Additionally, GrowGeneration announced the acquisition of The Harvest Company in a move to bolster its market share in the hydroponics market. The Harvest Company serves growers in Northern California. GrowGeneration believes this move will provide excellent growth long term, and positions the company well in a core high-growth cannabis market.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.