Shares in Noth American cannabis stocks such as Trulieve Cannabis Corp. (CSE:TRUL), Curaleaf Hldgs Inc. (CSE:CURA, OTCQX:CURLF) and Verano Holdings Corp (CSE:VRNO, OTCQX:VRNOF) tanked after Florida rejected legalization of recreational marijuana.
A ballot measure, known as Amendment 3, which would have allowed adults to possess up to three ounces of marijuana, failed to obtain the required 60% of support from voters yesterday.
Trulieve stock fell 42% in early trading on Wednesday, Curaleaf, Green Thumb Industries Inc. (CSE:GTII, OTCQX:GTBIF), Cresco Labs Inc. (CSE:CL, OTCQX:CRLBF), Tilray Inc (NASDAQ:TLRY) and Verano all fell around 10%.
The AdvisorShares Pure Cannabis ETF was down 16% in the early trading.
It comes after the US Drug Enforcement Administration (DEA) had moved to reclassify marijuana as a less dangerous drug in recent years.
While Flordida's Democrats and newly victorious Donald Trump had backed Amendment 3, Florida's Republicans have dominated control of the state and oppose legalization.
Florida governor Ron DeSantis has been an ardent opponent of the amendment.