Vermont Senator, Bernie Sanders (D), just emerged as the most cannabis-friendly US presidential candidate.
Sanders revealed that, if elected, he would legalize cannabis in every US state through executive action on his first day in office.
At an Iowa rally, Sanders said, “We will end the destructive war on drugs. On my first day in office through executive order, we will legalize marijuana in every state in this country.”
This statement set a more aggressive tone for Sanders. Previously, Sanders said he would legalize cannabis in all 50 states within the first 100 days. In addition, he vowed to appoint a cannabis-friendly Attorney General among green-friendly candidates for other key cabinet positions.
Sanders’ comments sent a buzz across the cannabis industry for two reasons.
#1 – Sanders is now the most cannabis-friendly candidate in the running.
#2 – Sanders is surging in the polls. According to Real Clear Politics, Sanders now has the highest probability of winning the nomination at 41%, with Joe Biden trailing at 32%.
Take a look below.
The Democratic primary doesn’t wrap up until June, and the general election is still nine months away. Let’s be real, a lot can happen in that time.
But, if Sanders pulls it off and lands in the Oval Office, it would be an enormous boost to the US cannabis industry.
While a Sanders win would be huge for the cannabis industry, I see one early cannabis industry leader that will likely benefit more than its peers.
- Is one of the largest cannabis companies in the US.
- Operates in 19 US states.
- Has the best political connections in the industry.
- Could see a lucrative buyout if Sanders is victorious.
Acreage Holdings (CSE: ACRG, OTC: ACRGF) has a current market value of $550 million and is an early, but powerful, industry leader.
Headquartered in New York City, Acreage owns one of the best cannabis portfolios in the industry. That includes 24 cannabis dispensaries in 18 states.
In addition, Acreage also has some of the best political connections in the cannabis industry. John Boehner, the former Speaker of the House, serves on Acreage’s board of directors. Former Canadian Prime Minister, Brian Mulroney, also serves on the board of directors.
Acreage should see strong growth as cannabis-friendly rhetoric continues to reach the masses.
But, if Sanders manages to occupy the Oval Office, I think Acreage could soar to incredible levels.
Why Would Acreage Benefit?
Back in April of 2019, Acreage inked a deal to be bought by Canopy Growth Corp (TSX: WEED, NYSE: CGC), the largest cannabis company in the world, for $3.4 billion.
The deal has already been approved by shareholders. However, Acreage still has one big hurdle to clear.
Here are some more details from Bloomberg.
But for Canopy, the world’s most valuable pot company, there’s one major contingency: the deal by the Canadian firm hinges on the U.S. legalizing weed at the federal level, a thorny political issue that is by no means assured.
If weed isn’t legalized federally in the U.S. in the next 90 months, or 7.5 years, the deal can be terminated, according to the statement. That means that Canopy and Acreage are betting the marijuana prohibition will end in the U.S. by 2027.
If Sanders is elected, it could trigger a closure for this deal. If it happens, I expect Acreage shares to soar.
This could be the perfect time to buy shares.
Acreage is Trading 50% Below the 52-Week High
Acreage shares struggled with the broader cannabis sector in 2019, falling 65% from the 52-week high. Today, shares are stabilizing, forming a long-term bottom and key level of support at $6.00.
The Big Picture on Sanders and Acreage
Sanders has become the most cannabis-friendly candidate in the US presidential election. If he beats the odds and lands in the White House, he would be a powerful advocate of legalization – a move that would benefit the entire US cannabis industry.
Federal legalization could be most beneficial for Acreage, potentially triggering a Canopy buyout.
Michael Vodicka owns shares of Canopy Growth Corp (WEED) and Acreage Holdings (ACRGF) at the time of writing.
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