- Cannabis Aurora spiked as much as 40% on Thursday as Joe Biden’s election lead put him a considerable distance from the presidency.
- The stock price hike could also be helped by four US states that legalize marijuana for adults over 21 on Tuesday.
- Other weed stocks including Tilray, Aphria, OrganiGram and Canopy Growth also rose in pre-market trading.
- Cannabis stocks initially fell on Wednesday, as prospects of the Republican Senate blurred hopes for a rapid legalization of federal cannabis.
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Shares of Canadian-based cannabis maker Aurora Cannabis soared as much as 40% on Thursday as Democratic candidate Joe Biden̵7;s election lead edged higher, suggesting the Big boost for the US cannabis industry.
Democrats have vowed to de-nominate cannabis at the federal level in the US if they win.
Aurora jumped 40%, to $ 6.19, at its highest level after closing at $ 4.43 on Wednesday. As of Thursday, stocks have plunged 83% year-to-date, partly due to ineffective cost-saving strategies.
Alberta-based weed grower fell on Wednesday, along with the rest of the legal pot sector, as the prospect of a Republican-controlled Senate blurs the chances of fast federal legalization fast for this drug.
Read more: Top 7 cannabis executives analyze what cannabis elections mean for their companies and the future of industry in the US
The increase in supply may have been prompted by four US states that legalize adult marijuana for adults over 21 on Tuesday. Arizona, New Jersey, and Montana have legalized the sale of recreational marijuana in statewide voting initiatives. New Jersey is the largest East Coast state to legalize cannabis, offering the biggest opportunity.
South Dakota also legalized the sale of medical and recreational marijuana. A large portion of Americans currently live in a state where it is legal to sell marijuana.
Other Canadian licensed manufacturers also increased alongside Aurora on Thursday. At the highest level of the day, Tilray increased 33%, Aphria increased 14%, OrganiGram increased 16% and Canopy Growth increased 14%.
The results of the presidential election and some of the Senate elections are still unclear.
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