Canadians who invest in marijuana-related stocks, as well as those who use pot or work in the cannabis industry, could be banned from ever entering the U.S., according to a report Thursday.
While pot smokers and cannabis-industry workers have previously faced the prospect of lifetime travel bans, it may be news to investors that the risk extends to them as well.
Marijuana-related stocks fell in after-hours trading after Politico published the report, but managed to pare their losses on Friday. Tilray Inc. TLRY, -8.15% was last down 7% and Aurora Cannabis Inc. ACBFF, -0.55% was down 0.8%.
But Canopy Growth Corp. CGC, +4.08% fully reversed losses to gain 7% and Cronos Group Inc. CRON, +0.40% was up 6%. Valens GroWorks Corp. was up 15%. The news came after the high-flying sector’s slump this week following reports that U.S. regulators may crack down on flavored e-cigarettes.
According to the report by Politico, border crossings could face disruptions once recreational marijuana becomes legal in Canada on Oct. 17. While legal in several states, the U.S. federal government still classifies marijuana as a banned substance. So effectively, pot-industry workers and investors are seen as contributing to drug trafficking. [Read more at Market Watch]