Michigan voted on Tuesday to legalize marijuana for recreational use, ending decades of prohibitive regulation and ushering in a new era of cannabis law and a burgeoning cannabis industry, according to an NBC projection.
Cannabis stocks got a boost following midterm election results which largely favored the marijuana industry. Shares of major Canada-based cannabis companies rallied in premarket trading Wednesday. Tilray gained 5 percent, Canopy Growth added 2.6 percent and Aurora Cannabis rose 3.1 percent; Cronos Group and Aphria are up 3.1 percent and 1.8 percent, respectively.
“I think people are waiting for the Berlin Wall of Cannabis prohibition to topple over in the U.S. and I think yesterday’s election removed a few more bricks from that wall,” Tilray CEO Brendan Kenny told CNBC on Wednesday.
Michiganders chose to authorize the legalization of possession, use and cultivation of marijuana products by those who are at least 21 years of age. Individuals will now be permitted to possess and use marijuana and marijuana-infused edibles and grow up to 12 marijuana plants for personal consumption. The approved law will impose a 10-ounce limit for marijuana kept at residences and mandate that amounts over 2.5 ounces be secured in locked containers. [Read more at CNBC]