Investing.com - Shares in US and Canadian marijuana stocks dropped after voters in Florida rejected a ballot measure that would have legalized the recreational use of the drug.
The move, which also would have made it legal for adults of at least 21 years of age or older to possess up to three ounces of marijuana and allowed businesses already growing and selling medical marijuana to sell it to them, did not receive the required 60% supermajority it needed to pass.
Canopy Growth (TSX:WEED) (NASDAQ:CGC), Tilray (TSX:TLRY) (NASDAQ:TLRY), and Aurora Cannabis (NASDAQ:ACB) all sank in premarket US trading on Wednesday.
Florida Gov. Ron DeSantis had been fervent critic of the measure, arguing in part that it would impact tourism in the southeastern US state due to a weed smell in the air. Still, the amendment had received the backing of DeSantis' fellow Republican Donald Trump, who won the US presidential election on Wednesday.
Funding for the campaign boosting the measure came largely from Trulieve, Florida's biggest medical marijuana operator. Trulieve gave almost $145 million of the $153 million in total it spent on the campaign through the end of October, according to the Associated Press.
Meanwhile, similar measures in both North Dakota and South Dakota were also on track to be rejected by voters, although two measures to legalize medical marijuana and regulate the industry were approved in Nebraska.
Prior to the election, 24 US states and the District of Columbia, or roughly 53% of America's population, had legalized the use of marijuana for adults. Its use for medical purposed is also allowed in 38 states plus the District of Columbia. Under federal law, possessing or selling marijuana remains a crime punishable by prison time and fines.
(The Associated Press contributed reporting.)