Cannabis stocks reacted with mixed results on Thursday after Matt Gaetz withdrew his nomination for U.S. Attorney General amid allegations of sexual misconduct, drug use, lack of legal experience and more. Last week, President-elect Donald Trump nominated Gaetz who is a long-time supporter of cannabis legalization.
While Gaetz's exit may not be directly tied to the sector's performance, multi-state operators (MSOs) and cannabis ETFs recorded notable declines, reflecting ongoing investor jitters in a politically sensitive market.
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MSOs Slides, Sector Faces Pressure
The AdvisorShares Pure US Cannabis ETF (NYSE:MSOS), often viewed as a benchmark for MSOs, dropped by -4.31%, closing at $4.56. This decline highlights the continued uncertainty in the cannabis space, as investors reassess the implications of a reshuffling political landscape.
Curaleaf Holdings Inc. (OTCQX:CURLF), one of the largest MSOs in the U.S., shed -4.10%, finishing the day at $1.99. Trulieve Cannabis Corp. (OTCQX:TCNNF) was not far behind, falling -1.93% to $6.11. Meanwhile, Cresco Labs Inc. (OTCQX:CRLBF) dropped -5.74%, closing at $1.15.While some MSOs struggled, Green Thumb Industries (OTCQX:GTBIF) managed to stay in positive territory closing at $9.30.
Sundial Stands Out
Sundial Growers Inc. (NASDAQ:SNDL) defied the broader sector trends, climbing 1.79% to end the day at $1.995. Other gainers included Tilray Brands Inc. (NASDAQ:TLRY), which rose 1.94% to $1.315, and Canopy Growth Corporation (NASDAQ:CGC), up 2.53% to $3.855.
Deep Declines
Thursday saw significant losses among smaller players, with Cansortium Inc. (OTCQX:CNTMF) plunging -22.72%, closing at $0.0711. iAnthus Capital Holdings Inc. (OTCQX:ITHUF) also struggled, dropping -11.43% to $0.00558.
