Alberta Cannabis Inc / Brochure via REUTERS
- Shares rose on Wednesday, with Democratic victories in Georgia’s run-off elections, raising investors’ hopes of short-term decriminalization.
- Democrats Raphael Warnock and Jon Ossoff won their races, giving the party control of the Senate, according to projections from Decision Desk HQ and Insider.
- The Senate’s limited control eliminates the Democrats’ chance to decriminalize marijuana at the federal level.
- Tilray rose to 19.1%. Aurora Cannabis and Canopy Growth rose 16.5% and 17.7% at intraday highs.
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Pot stocks soared on Wednesday, with the results of the Georgia Senate runoff election, raising investors’ hopes of decriminalization across the country.
Raphael Warnock and Jon Ossoff won their disputes, according to projections from Decision Desk HQ and Insider, giving Democrats a small majority in the Senate and unified government control for the first time since 2011.
The Democratic-controlled House passed a bill in December to decriminalize and tax marijuana at the federal level, but Senate Republicans rejected the measure. Democratic victories in Georgia give the party a narrow margin to pass more progressive cannabis legislation, although Republicans can still obstruct such votes.
Investors invested in cannabis stocks with the new optimistic outlook. Tilray rose to 19.1%. Aurora Cannabis and Canopy Growth rose 16.5% and 17.7% at intraday highs.
Read More: Top 10 Wall Street experts reveal their 2021 stock market predictions – and tell where to invest their money
Marijuana stocks increased in late 2020 after the November elections also raised hopes of short-term decriminalization. Aurora Cannabis almost doubled on November 6 when projections that Joe Biden would win raised the industry. Democrats had already pledged to promote decriminalization legislation if Biden took office.
The legalization of recreational marijuana in Montana, New Jersey, South Dakota and Arizona also increased cannabis stocks in November.
National cannabis decriminalization would rapidly expand the market accessible to growers. The companies have so far been relegated to states where the drug is legal. Only 15 states have fully legalized marijuana, while another 16 have decriminalized the drug for non-medical use.
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