Marijuana stocks were reeling Wednesday on the heels of adult-use legalization failures on Election Day in Florida, North Dakota and South Dakota and the grim prospects of national MJ reform under a second Donald Trump presidency.
The American Cannabis Operator Index, which includes nine U.S. publicly traded cultivators, processors, retailers and brands, was down nearly 27%, to $10.72, in afternoon trading.
And, seizing on the ballot rejections, particularly the big loss in Florida, as well as new Republican control in the Senate and the presidency in January, investors sent cannabis stocks tumbling.
Among the biggest losses on U.S. stock exchanges:
- Ayr Wellness, trading as AYRWF on the over-the-counter markets, was down 54.9%.
- Trulieve Cannabis Corp. (TCNNF, OTC), which bankrolled much of the adult-use campaign in Florida, plummeted 38.2%.
- Curaleaf Holdings (CURLF, OTC) fell 27.7%.
Verano Holdings, which trades as VRNO on the Cboe Canada exchange, was down 26.5%.
Conversely, traditional U.S. stock exchanges showed modest trading gains on news of Trump’s reelection, with bond yields increasing, along with the value of the U.S. dollar.
The S&P 500 increased by 2.3%, to $5,919.89, heading to its 48th record high this year, Bloomberg reported.
Chris Casacchia can be reached at chris.casacchia@mjbizdaily.com.
