Cannabis Stocks Slump Post-Election

Following the failure of adult-use legalization in Florida, South Dakota, and North Dakota, cannabis companies’ stocks have taken a beating in the market. Last Wednesday, the American Cannabis Operators Index (a measure that includes nine public cannabis companies) dropped nearly 30% to $10.72, with some of the U.S.’s largest individual cannabis companies seeing larger losses. Ayr Wellness was down over 50%, Curaleaf more than 25%, and Verano down roughly 30%.

With voters in Florida rejecting adult-use sales, Trulieve, a major backer of Amendment 3, saw its share price fall just under 40% in the fallout. While a majority of Florida voters approved the measure—in a tally of about 56%—it failed to meet the 60% threshold needed to put it over the top. The defeat nips a potential multibillion-dollar adult-use cannabis market in the bud, although the Sunshine State remains a large cannabis market via its medical program.

In other ballot initiatives, South Dakota voters also rejected adult-use sales, while North Dakota’s more limited legalization measure also went down to defeat. Elsewhere, voters in Nebraska approved medical cannabis, while in Texas decriminalization measures in Dallas, Lockhart, and Bastrop were successful.

With the GOP taking control of the Senate, any federal legalization efforts now face more of an uphill battle, with a significant core of the Republican party fully opposed to legal cannabis.

Tagged : cannabis

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