, a section of the tax code that prohibits cannabis companies from deducting regular business expenses like payroll and office supplies. The rule makes it more expensive for cannabis companies to do business., as cannabis would remain a Schedule I substance. In a roundabout way, this could benefit US cannabis companies by protecting them from competition.
"Any of the MFO, [Marijuana Freedom and Opportunity Act], MORE or STATES Act would likely result in allowing US names to list on a major exchange, clearinghouses would settle trades, investment bank/capital market support would open up, funds would be able to invest without fears of prosecution, and Canadian names could enter US THC," the analysts wrote.
Still, they say that US cannabis companies will be best positioned to benefit from a legislative change, even though institutions largely aren't able to invest in them.Leon Cooperman have invested in companies like Green Thumb IndustriesIn a Wednesday note, analysts from the investment bank Stifel acknowledged that Democrat's victories in Georgia gave cannabis stocks a strong tailwind, but said that they don't believe Congress will legalize cannabis.