On Feb. 24, 2016, Federal Court of Canada Judge Michael L. Phelan announced his decision in Allard v. Canada, striking down a previous ban on at-home cultivation and granting medical marijuana patients the right to cultivate their own medicine. Phelan suspended this decision for six months so that the Canadian government has time to formulate regulations for at-home cultivation.
Upon the court’s decision, Tweed and Bedrocan Canada, subsidiaries of the Canopy Growth Corporation (TSXV: CGC), issued a joint press release detailing their reaction to the ruling.
According to the press release, “Tweed and Bedrocan Canada support all legal means of producing medication. However, illegal sales of uncontrolled, unregulated cannabis are a serious concern. The decision today does not change the fact that access to cannabis must be done in a manner consistent with public health and safety objectives.”
CGC opened at C$3.15 on Feb. 24, but following the Allard decision, it closed the day at C$2.96, down by 6.03%. One day later, CGC opened at C$2.80, and as of 12:45 p.m. EST on Feb. 25, it is down by 2.7% at a share price of C$2.88.
On Feb. 25, CTV News interviewed Mark Zekulin, president of Tweed, to get his firsthand reaction on the Allard decision. The interview can be viewed in its entirety below.