Cannabis company Canopy applauds Biden's marijuana pardons as stock surges

Canopy Growth applauded President Joe Biden's announcement Thursday that helium volition pardon thousands of radical convicted of marijuana possession.

"Today represents enactment from the Administration that we person been waiting for – an acknowledgement that cannabis prohibition has failed and that excessively galore lives person been importantly impacted arsenic a result," David Culver, vice president of authorities relations Canopy, said successful a statement.

Shares of the Canadian-based cannabis company, the world's largest, jumped 22% aft the news, closing astatine $3.75. Shares of chap cannabis steadfast Tilray Brands gained implicit 30%. Tilray couldn't beryllium reached for remark by CNBC.

"President Biden, successful keeping with his run commitments, has set into question the actions needed to heal the harms of the past and illustration a people for responsible, ineligible cannabis markets successful the future," Culver said.

The determination could beryllium a measurement toward a wide loosening of the national classification of the drug. More than 6,500 individuals with anterior convictions for elemental marijuana possession were impacted by the pardons, according to the White House. This includes thousands much done pardons nether D.C. law. 

"There are thousands of radical who person anterior national convictions for marijuana possession, who whitethorn beryllium denied employment, housing, oregon acquisition opportunities arsenic a result. My enactment volition assistance relieve the collateral consequences arising from these convictions," Biden said successful a connection announcing the pardons.

Biden urged governors to contented akin pardons for cases regarding authorities offenses of civilian possession of marijuana.

In an net study Thursday morning, Constellation Brands, which owns 36% of Canopy's outstanding shares, said it took a $1 cardinal writedown related to its involvement successful the cannabis company.

Canopy's banal has fallen much than 70% successful the past 12 months amid slowing income crossed the cannabis industry. The banal is much than 90% disconnected its all-time precocious of $56.89.

–CNBC's Christina Wilkie contributed to this report.