The midterm election has brought cheer to companies doing marijuana-related businesses in the US, despite the uncertainties surrounding regulation of cannabis in the region. Results of the poll indicate the taboo associated with marijuana will soon be a thing of the past in many states. While Michigan and North Dakota voted in favor of recreational marijuana, the people of Missouri and Utah are for legalizing its medical use.
The market responded positively to the vote and the leading pot companies saw their stocks surging early Wednesday. Tilray (TLRY), the Canada-based cannabis company listed on Nasdaq, gained about 5% in the premarket after closing the previous session higher. Shares of Cronos Group (CRON) and Canopy Growth (CGC), also Canadian firms specialized in weed-based products, rose 4% and 2% respectively.
The Canadian government’s revolutionary decision last year to open the market to the marijuana industry created a ripple effect across the continent. Earlier this month, Mexico’s apex court withdrew a blanket ban on the manufacturing and use of marijuana products for recreational purposes.
While Michigan and North Dakota voted in favor of recreational marijuana, the people of Missouri and Utah are for legalizing its medical use
Coming on the heels of a fresh move by the Canadian authorities legalizing recreational marijuana across the country, the US election gave the pot companies a shot in the arm. That is enough reason for the undecided investors to take the plunge as they can be assured of decent returns now. It is almost certain that more state administrators will follow suit in the coming months, ultimately removing the skepticism surrounding the cannabis sector.
As many as 32 US states recognize the medicinal properties of marijuana, while it is legal to sell and consume weed in 10 states. In several states, marijuana had found a place on the ballots this time, though an official ban is in place at the federal level. Moreover, the judicial machinery is against legalizing weed. So, there is still a long way to go before the government opens its door to cannabis in a big way.
With the favorable vote, especially in Michigan, boosting the morale of the industry, market watchers remain optimistic about Illinois and Florida also joining the pot league in the near future. Currently, the general perception among regulators is that the pros of opening an adult cannabis market far outweigh the cons.