Marijuana company stocks are sliding amid reports that Attorney General Jeff Sessions plans to roll back federal rules paving the way for states to legalize marijuana sales.
Sessions is expected to announce the policy shift later Thursday, reported The Associated Press, citing anonymous sources. The change will reportedly free U.S. attorneys in individual states to decide how to enforce federal marijuana laws, reversing a 2013 policy preventing the federal government from interfering with states that legalize marijuana.
The news sent stock prices for several of the largest cannabis growers and other marijuana industry companies tumbling, reported Business Insider. The losses reversed gains earlier in the week from California’s full legalization of recreational marijuana, which took effect Jan. 1.
Terra Tech, the largest U.S. pot stock, was down 35 percent, as was Cannabis Science, reported Business Insider. Other stock losses included a 22 percent drop for Medical Marijuana Inc. and an 8 percent dip for Aurora Cannabis.
Never miss a local story.
The news also affected related companies, reported Bloomberg News. Stock prices for Scotts Miracle-Gro Co., a maker of lawn and garden products that has been expanding sales to cannabis growers, fell by 5 percent.
Canadian companies also felt the blow, according to MarketWatch. Supreme Cannabis Co. saw a 15 percent drop in stock prices and Canopy Growth Corp., Canada’s largest, saw a 10 percent drop. Horizons Life Marijuana Sciences saw a 7 percent slide.