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 cannabis industry.
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.
Other Canadian licensed producers also rose alongside Aurora on Thursday. At intraday peaks, Tilray rose 33%, Aphria added 14%, OrganiGram increased 16%, and Canopy Growth climbed 14%.
The outcome of the presidential election and some Senate contests is still unclear.
