Marijuana Stocks Drop After Florida Vote

Shares in US and Canadian marijuana stocks fell following Florida voters' rejection of a ballot measure that sought to legalize recreational marijuana use.

The failed measure would have allowed adults aged 21 and older to possess up to three ounces of marijuana and permitted existing medical marijuana businesses to sell it. However, it did not reach the necessary 60% supermajority to pass.

Companies like Canopy Growth (NASDAQ: CGC), Tilray (NASDAQ: TLRY), and Aurora Cannabis (NASDAQ: ACB) experienced declines in premarket trading on Wednesday.

Florida Governor Ron DeSantis opposed the measure, citing concerns that it could negatively affect tourism in the state. Notably, the amendment received support from former President Donald Trump, who won the US presidential election on the same day.

Trulieve, Florida's leading medical marijuana operator, was the primary financial backer of the campaign, contributing nearly $145 million of the total $153 million spent on it up until the end of October, as reported by the Associated Press.

Similarly, voters in North Dakota and South Dakota appeared poised to reject similar measures, although two proposals to legalize medical marijuana and regulate the industry were approved in Nebraska.

As of now, 24 US states and the District of Columbia, representing roughly 53% of the population, have legalized marijuana use for adults. Medical marijuana use is permitted in 38 states plus the District of Columbia. Despite these developments, marijuana possession and sales remain federally illegal, carrying potential penalties of imprisonment and fines.

*(The Associated Press contributed reporting.)