Aurora Cannabis soars 40% as Biden's election lead grows, pointing to a major boost for marijuana stocks
Cannabissoared as much as 40% on Thursday as Joe Biden's election lead put him within striking distance of the presidency.
- The boost in share price may also have been helped by four US states legalizing cannabis for adults above 21 on Tuesday.
- Other weed
stocksincluding Tilray, Aphria, OrganiGram, and Canopy Growth also rose in pre-market trading.
- Cannabis stocks initially fell on Wednesday, as prospects of a Republican Senate dimmed hopes for swift federal legalization of
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Shares of Canada-based marijuana producer Aurora Cannabis soared as much as 40% on Thursday as Democratic nominee Joe Biden's election lead inched higher, pointing to a major boost for the US
Democrats have touted commitment to decriminalize marijuana at the federal level in the US if they win.
Aurora climbed 40%, to $6.19, at intraday highs after closing at $4.43 on Wednesday. Heading into Thursday, the stock had plummeted 83% on a year-to-date basis, partly because of ineffective cost-saving strategies.
The Alberta-based weed-grower fell on Wednesday, along with the rest of the legal pot sector, when the prospect of a Republican-controlled Senate dimmed chances of a swift federal legalization of the drug.
The stock boost may also have been buoyed by four US states legalizing cannabis for adults aged over 21 on Tuesday. Arizona, New Jersey, and Montana have legalized the recreational sale of cannabis in state-wide ballot initiatives. New Jersey is the largest state on the East Coast to legalize marijuana, presenting the biggest opportunity.
South Dakota also legalized the sale of both medical and recreational cannabis. A big chunk of Americans now live in a state where the sale of cannabis is legal.
The outcome of the presidential election and some Senate contests is still unclear.
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