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Key Takeaways
- Marijuana stocks fell Wednesday after a ballot measure in Florida that would have legalized recreational marijuana in Florida failed to pass.
- The proposed amendment received 55% of the vote, but required 60% in order to pass.
- Florida could have added a significant market for the cannabis industry.
Shares of cannabis companies fell Wednesday after a ballot measure that would have legalized recreational marijuana in Florida failed to pass.
The ballot measure would have legalized the use and sale of recreational cannabis from medical marijuana centers and other state-licensed entities. It received 55% of the vote, but amendments to the state constitution require 60% approval to pass.
Medical marijuana has been legal in Florida since 2016. And Florida made the use of CBD, which is a chemical in marijuana, legal in 2019.
Canopy Growth (CGC) shares plunged more than 20%, Aurora Cannabis (ACB) dropped 18%, and Tilray Brands (TRLY) lost over 13% intraday Wednesday.
Florida Was Seen as a Major Opportunity for Marijuana
Adult-use marijuana is legal in 24 U.S. states and Washington D.C. Florida could have added a significant market for the cannabis industry. Marijuana analytics firm Headset estimated the state could have reached $4.9 billion to $6.1 billion in recreational marijuana sales in the first year of legalization.
Trulieve Cannabis (TCNNF), which operates 156 locations for medical marijuana in the state, had donated $144.6 million to pro-Amendment 3 group Smart & Safe Florida since 2022, according to data from the Florida Division of Elections.
The company’s shares fell over 40%.