Cannabis stocks respond well to midterm election results

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As more states are poised to embrace legal cannabis, the stock market experiences a climb

In addition to electing governors, representatives, senators, and officials for various state and local offices, millions of people voted on Tuesday on more than 130 propositions in 37 states, most notably those related to marijuana use. Maryland and Missouri approved recreational marijuana use for recreational purposes on ballots, making cannabis stocks already beginning to see positive results. Arkansas and North Dakota said no.

Following the ballots, 21 states have authorized recreational cannabis use. Voters in South Dakota also had to make that call and, although the results were not announced right away, it was already confirmed that the votes were not enough to welcome the recreational market. Be that as it may, shares of US publicly traded marijuana companies began to trend higher yesterday morning.

Missouri passed measures legalizing consumption at the age of 21 and expunging most prior convictions and arrests for non-violent marijuana-related offenses, except for sales to minors and driving under the influence. Maryland will also make changes to its criminal code and will automatically expunge past priors for marijuana possession.

All five states deciding Tuesday currently have medical marijuana programs. Arkansas, in 2016, became the first state in the region known as the Bible Belt to approve medical marijuana. Cannabis investors’ spirits soared to the skies after the confirmed results, as marijuana stocks across the country began to see remarkable growth.

For example, yesterday, it was announced that the AdvisorShares Pure US Cannabis ETF rose more than 3% before giving up some of those gains. Other companies such as Columbia Care, Ayr Wellness, Curaleaf Holdings and TerrAscend saw a positive impulse yesterday morning. While Maryland and Missouri are relatively small, they are actually the largest states among those that were in the race.