The stocks of Curaleaf Holdings (OTC:CURLF) Inc. and Trulieve Cannabis (OTC:TCNNF) Corp. experienced a positive surge this Wednesday, following the Senate Committee's approval of the Secure and Fair Enforcement (SAFER) Banking Act of 2023. The legislation, which has been repeatedly approved by the House and is now set for a full Senate vote, aims to provide legal cannabis companies with access to the financial system.
Curaleaf, with a market cap of 3.17B USD as provided by InvestingPro, has seen a significant price uptick over the last six months, which aligns with one of the InvestingPro Tips. Despite its declining trend in earnings per share, analysts predict that the company will be profitable this year. The company has also seen a strong return over the last month and three months, which is reflected in its 1 month price total return of 46.55% and 3 month price total return of 40.26%.
Senate Majority Leader Chuck Schumer has endorsed the Act, which has received support from both sides of the political aisle despite opposition from some quarters. Notably, Republican Senator Cynthia Lummis is among those backing the legislation, countering opposition from individuals such as Kevin Sabet.
Trulieve Cannabis Corp., on the other hand, despite operating with a significant debt burden as pointed out by one of the InvestingPro Tips, has also seen a strong return over the last month and three months, which is evidenced by its 1 month price total return of 89.33% and 3 month price total return of 70.20%. The company has a market cap of 1.2B USD and analysts predict that it will be profitable this year.
In a parallel development, the U.S. Drug Enforcement Administration (DEA) is contemplating a reclassification of cannabis under federal law. This potential move could remove the existing 280E tax restrictions imposed on legal cannabis firms, further fostering their growth and development.
The dual developments represent significant steps towards financial inclusivity for legal cannabis companies, which have long faced banking challenges due to federal restrictions. The approval of the SAFER Banking Act by the Senate Committee, coupled with potential changes in DEA policy, could significantly alter the landscape for these businesses moving forward. For more detailed insights, follow the InvestingPro Tips for Curaleaf and Trulieve.
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