Is London’s mayor teeing up a UK cannabis revolution? – Value The Markets
The mayor of London intends to start a review looking at decriminalizing cannabis amid a shift in public attitude. This could spell good times ahead for international cannabis stocks, as many consider up their opportunities for future growth.
In his manifesto, published ahead of the city’s coming mayoral election, Sadiq Khan — who is well ahead in the race based on a YouGov survey — said he will launch a London Drugs Commission when elected. The commission could consider the effectiveness of UK drug laws, focusing particularly on cannabis.
Especially, Khan’s manifesto noted that the “requirement for a discussion” about UK drug laws, adding that police tools “could be better concentrated on the medication causing the most harm”.
A significant bulk — 63 percent — of Londoners are in favour of legalizing and regulating cannabis. Only 19 percent are opposed to relaxing the rules. Zooming out, 47 percent of Brits in complete favor legalization and just 30 percent are against it. The remainder, meanwhile, remain undecided. This is based on a poll performed by Survation.
Requirement for UK cannabis stocks is based about the rise, particularly with easing regulations already meaning that particular cannabis stocks can now trade on the London Stock Exchange.
Kanabo’s issue price of 6.5p per share has quadrupled to 26p.
MGC’s shares had an issue price of 1.475p at time of listing, and now trade more than just two and a half times higher at 3.80p.
The organization, which owns quick style retailer Primark, is among the UK’s largest legal cannabis makers. It develops cannabis specifically bred to make CBD — even a non-psychoactive material.
Even the UK legalized medical cannabis in late 2018, though physicians are reluctant to issue prescriptions.
But, change is on the way.
One catalyst is going to be a two-year study, Project Twenty21, in which approximately 20,000 patients will be given the medication by the end of the year. This will include patients with ailments like stress disorder, epilepsy, and chronic pain.
Project Twenty21 intends to change attitudes among policy makers. The objective is to make cannabis just as available as other prescription medicines.
Even the UK’s authorized cannabis market is predicted to top #two billion by 2024, based on cannabis-focused consultancy Prohibition Partners.
With this in mind, legalization could well become a significant income source for the authorities, since it has in other jurisdictions globally.
For example, Colorado hailed recreational bud in 2012 and the taxation benefits from this are already quite compelling.
Indeed, the state collected more than $387 million in taxation revenue since 2020 bud sales reached nearly #2.2 billion. For the US as a complete, legal cannabis sales hit a $17.5 billion record in 2020, up 46 percent from 2019.
The US appears to be heading towards complete legalization, together with Senate Majority Leader Chuck Schumer already constructing “new national bud reform legalization”.
In his’Strategy for Black America’ Joe Biden vowed to “decriminalize the use of cannabis” and automatically expunging all prior convictions for cannabis use.
Following in the US’s footsteps is surely an enticing proposal for the UK, since it attempts to boost tax earnings in the wake of this Covid-19 crisis. Proactive Investors’ analyst Alastair Ford has even predicted that legalization is a “probably reply” to the UK’s economic shortfall following the pandemic.
After all, legalization would represent a totally new tax avenue for the UK authorities.
Legalization could also be a huge money saver. A report by the TaxPayers’ Alliance has indicated that legalization could mean an #890 million annually saving for the authorities on policing, prisons, and courts.
A new prospect?
The UK government has resisted Khan’s review. She said that “the coverage on controlled medication is an issue for the UK authorities” rather than the mayor’s office.
However, though Khan is unable to change the legislation, his manifesto definitely speaks to a changing attitude towards cannabis.
The mayor said he hopes to “provoke an overdue national discussion” about the medication.
This debate could set the UK on the path to legalization. Additionally, with a prominent analysis of medical cannabis on the way, there is a strong likelihood of seeing increased medical use of cannabis too.
Cannabis leading Canopy Growth (TSE: WEED | NASDAQ: CGC) has already seen its shares grow more than 6 percent since the start of 2021. This was in no small part down to US legalisation hopes, which would open the floodgates for growth.
If the UK opens up, that is another market for established brands such as Canopy and Aurora Cannabis (TSE: ACB Cannabis stocks have already waited so long in North America, also for such massive rewards. Now, they could well be looking to London for their second conquest.