Why Curaleaf Stock Blasted Almost 5% Higher Today

With the mighty struggles the cannabis industry is currently experiencing, any positive news item concerning the sector is encouraging for investors. That was the dynamic behind the nearly 5% surge in Curaleaf (OTC: CURLF) stock on Wednesday, as yet another small step toward legalization was reported. That sub-5% pop was more than high enough to beat the flat-lining S&P 500 index.

A new approach to pot in North Carolina

That news came from one of the dwindling number of U.S. states that has not yet legalized cannabis -- North Carolina. In a TV interview with WRAL News, the state's governor Josh Stein clearly expressed support for flipping the switch on legal weed.

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"If you are an adult and that's the choice you want to make, you should be able to make that choice," he said.

So far, that doesn't seem to be just empty rhetoric. Stein has issued an executive order (EO) creating a North Carolina Advisory Council on Cannabis, a body that will evaluate the pros and cons of marijuana law reform in the state. It will be composed of as many as 30 individuals and include legislators, representatives from tribal groups, and agriculture specialists.

In the interview, Stein expressed concern that the market for products associated with cannabis and hemp is unregulated and as such poses a risk to the state's youth. The situation will likely be one of the many explored by the council.

Slow but steady change

Of course, this development in and of itself doesn't move the needle much for any pot company, let alone Curaleaf. Yet it's still another sign that the ice freezing U.S. marijuana law is melting, if only slowly and gradually. Investors are justified in feeling a small jolt of optimism and for hoping the momentum continues.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.