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Pot stocks jumped on Wednesday as projected Democratic victories in Georgia runoff elections boosted investors’ hopes for near-term decriminalization.
Democrats Raphael Warnock and Jon Ossoff are set to win their races and give the party control of the Senate, according to projections from Decision Desk HQ and Insider.
Slim control of the Senate will lift Democrats’ chances at decriminalizing marijuana at the federal level.
Tilray soared as much as 19.1%. Aurora Cannabis and Canopy Growth climbed 16.5% and 17.7%, respectively, at intraday highs.
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Pot stocks rallied on Wednesday as Georgia’s Senate runoff elections lifted investors’ hopes for nationwide decriminalization.
Democrats are set to win both races in Georgia and win a slim majority in the US Senate, according to projections from Decision Desk HQ and Insider. Victories for Democrats Raphael Warnock and Jon Ossoff would give the party unified control of the government for the first time since 2011.
The Democrat-controlled House passed a bill in December to decriminalize and tax marijuana at the federal level, but Senate Republicans balked at the measure. Democrats’ wins in Georgia give them the narrow margin needed to pass more progressive cannabis legislation, though Republicans will still be able to filibuster such votes.
Investors piled into cannabis stocks on the newly bullish outlook. Tilray soared as much as 19.1%. Aurora Cannabis and Canopy Growth climbed 16.5% and 17.7%, respectively, at intraday highs.
Read more: 10 top Wall Street experts unveil their stock-market forecasts for 2021 — and tell you where to put your money
Pot stocks climbed higher into the end of 2020 after November elections similarly boosted hopes for near-term decriminalization. Aurora Cannabis nearly doubled on November 6 as President-elect Joe Biden’s projected victory lifted the sector. Democrats previously pledged to push decriminalization legislation should Biden take office.
The legalization of marijuana for recreational use in Montana, New Jersey, South Dakota, and Arizona also drove cannabis stocks higher in November.
Nationwide decriminalization of cannabis would rapidly expand the addressable market for producers. Companies have so far been relegated to states where the drug is legal. Only 15 states have fully legalized marijuana, while another 16 have decriminalized the drug for non-medical use.
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Source:: Business Insider