Tilray stock opened 15% up on Friday: what happened?

Tilray Inc (NASDAQ: TLRY) stock opened more than 15% up on Friday after Marijuana Moment said the U.S. lawmakers are scheduled for a hearing on federal legalization of marijuana next week.

Could cannabis be federally legalized in the U.S.?

The U.S. House of Representatives, as per the report, will vote on the “MORE” Act for the second time in the coming week. In December 2020, the Marijuana Opportunity, Reinvestment and Expungement Act received a nod from the House but was blocked by the Republican-majority Senate.

If the bill is successful this time, cannabis will be legalised in the U.S. on the federal level. It will be taxed and regulated, much like alcohol. Criminal penalties related to the use of cannabis will also dissolve as it delists from “controlled substances”.

Several states have already legalised marijuana

On the state level, eighteen governments have already put a mechanism in place to allow the use of cannabis for nonmedical purposes. That number goes up to 37 for medical use of marijuana, data from the National Conference of State Legislature confirms.

Earlier this month, Tilray reported its first quarterly net income of $6.0 million. Including the price action on Friday, TLRY is now up 65% in two weeks and Canaccord Genuity still sees another 10% upside from here.