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Benton Bodamer (Member, Columbus) and Scot Crow (Member and General Corporate, M&A and Private Equity Practice Group Chair, Columbus) discussed the declining stock of Aurora Cannabis, a Canadian-licensed cannabis producer, with InvestorPlace for an article titled “Aurora Cannabis Stock May Already Have a U.S. Problem.” The company’s stock, which has reached its lowest point in over two years, may take another hit as the U.S. heads into an election year, decreasing the likelihood of upcoming action on federal legalization.
“This will be a year of increased friction and enforcement as federal legislation largely stalls due to the presidential election cycle,” Scot told InvestorPlace. “IRS enforcement actions against legitimate state businesses could increase the possibility of meaningful federal action, but not realistically until after the election cycle."
“Federal and state agencies enforcing existing laws will expose non-compliant state operators,” Benton said, echoing Scot’s thoughts on increased friction. “Legitimate competition will bring risk of failure in select markets, testing state and federal enforceability of contracts and receivership and bankruptcy protections, even further than last year.”
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