While many rejoiced about Donald Trump’s victory Wednesday morning several public cannabis operators observed their shares plummet.
This sharp industry decline is largely attributable to Florida’s decision to not legalize adult-use cannabis through a ballot measure at the polls. It required 60 per cent or more of voters to give their assent but only 56 per cent did so. Many investors had high hopes for the state’s market and were left disappointed.
The American Cannabis Operator Index, comprised of nine American public companies in the industry, dropped by almost 27 per cent. Meanwhile, the AdvisorShares Pure US Cannabis ETF (NYSEARCA: MSOS) slid by over 27 per cent.
Moreover, Ayr Wellness Inc (OTCMKTS: AYRWF) sunk by over 56 per cent, Trulieve Cannabis Corp (OTCMKTS: TCNNF) dropped by more than 38 per cent and Curaleaf Holdings Inc (OTCMKTS: CURLF) plunged by just under 30 per cent.
Voters in South Dakota and North Dakota also rejected recreational marijuana legalization, another factor contributing to the pot stock investor’s nightmare today.
Trump recently voiced his assent to open the adult-use market in his home state of Florida, but voters didn’t share his enthusiasm enough.
The DEA will be considering federal rescheduling next month.
Read more: Ohio cannabis market goes gangbusters after recreational bud legalized
Read more: Agrify flies high on US$20M investment from Green Thumb
Canadian weed stocks felt the impact too
Toronto’s Canopy Growth Corp (TSE: WEED) (NASDAQ: CGC) witnessed a 21 per cent decline on the TSX and Nasdaq Exchange.
Others based north of the U.S. like Organigram Holdings Inc (TSE: OGI) (NASDAQ: OGI) and Aurora Cannabis Inc (TSE: ACB) (NASDAQ: ACB) were impacted too, dropping by around 9 per cent and 16 per cent respectively.
Also, Ontario’s Cronos Group Inc (TSE: CRON), which is down by over 7 per cent. This company’s Spinach brand recently became the top-selling product line in the Canadian market.
rowan@mugglehead.com
