Cannabis stocks fall as Florida rejects legalization of recreational marijuana

U.S.-listed cannabis stocks slipped in premarket trading on Wednesday after a costly campaign to legalize recreational marijuana in Florida failed late Tuesday.

The approval of Amendment 3 would have given way for medical cannabis dispensaries and other licensed state entities to sell cannabis products to consumers 21 years of age and older.

Shares of Tilray Brands (NASDAQ:TLRY) down 10%, SNDL (NASDAQ:SNDL), Cronos Group (NASDAQ:CRON) fell 18% and 4%, respectively.

Canopy Growth (NASDAQ:CGC) was down over 20% and Aurora Cannabis (NASDAQ:ACB) dropped 9%. AdvisorShares Pure US Cannabis ETF (MSOS) dropped 13%.

The initiative’s rejection is considered a victory for Gov. Ron DeSantis (Rep.), who had campaigned against it. Donald Trump, elected the 47th President of the United States, and a Florida resident, has said he favored the measure.

In the past, Trump has stated his support for leaving recreational cannabis legalization up to individual states.