President Biden Pardons Marijuana Possession Offenses, Begins Process of Decriminalizing Drug

On Thursday, President Joe Biden announced that he would be pardoning all prior federal marijuana possession offenses. This is a major step in decriminalizing the drug and fulfilling a campaign pledge. It’s believed that this will eventually lead to full legalization of cannabis and CBD products, opening up new markets for corporations to monetize. Below, we’ll take a look at some of the companies that stand to benefit from these changes.

Impact on Companies
Charlotte’s Web (TSX:CWEB) (OTCQX:CWBHF), one of the world’s leading manufacturers and distributors of CBD products, could see a significant bump in business as a result of Biden’s decision. The company is already well-positioned to capitalize on the growing demand for CBD products; in 2020, it generated nearly $170 million in revenue, a figure that was up ~140% from 2019. With the U.S. market opening up even further, Charlotte’s Web could see its revenue and profits soar in the coming years.

Endexx (OTCQB:EDXC) is another company that looks poised to benefit from the changing landscape. Endexx is a diversified holding company with two main subsidiaries: m3Hub, a medical cannabis software platform that provides solutions for tracking inventory and managing distribution; and CBD American Shaman, a retailer of CBD products with over 250 locations across the country. m3Hub could see increased demand from dispensaries and growers who are now able to operate more freely in the U.S., while CBD American Shaman should also benefit from the changing attitudes toward CBD products.

Jazz Pharmaceuticals (NASDAQ:JAZZ), after getting its hands on the industry’s first FDA-approved cannabis-based medicine last February, is angling to keep its crown with a major manufacturing push overseas. Jazz Pharmaceuticals, has outperformed the sector so far this year. The stock’s year-to-date return is 6.3%. The consensus estimate for Jazz Pharmaceuticals’ current year EPS has increased 4.3% over the past three months.

Thursday’s announcement by President Biden is big news for the cannabis industry. For years, corporations have been chomping at the bit to get into the U.S. market; now, it looks like they’ll finally get their chance. Companies like Charlotte’s Web and Endexx look poised to take advantage of the growing demand for CBD products; investors would do well to keep an eye on these companies in the coming months and years.

Featured: $CWBHF $EDXC $JAZZ



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