Cannabis stocks tumbled Wednesday after Florida Governor Ron DeSantis and billionaire Ken Griffin voted down a marijuana legalization bill.
Amendment 3, which would have legalized recreational use of marijuana in the state constitution, failed to garner the 60% support needed to pass under Florida law. It received 55.9% or approximately 6 million votes in favor.
According to one report, the bill's defeat was a major victory for DeSantis, who had campaigned against the law. Bloomberg reporting.
Records show the governor used millions of dollars in state funds to run political ads opposing the amendment. Obtained by asking for renta Florida-based newsletter.
He and his wife, Casey, held a press conference with law enforcement to complain about the smell of marijuana and the risk of increased crime.
In the process, he enlisted the help of Griffin, a hedge fund manager who owns Citadel and Citadel Securities. Both companies recently relocated from Chicago to Miami. According to Forbes, Griffin's net worth is $46 billion.
“Floridians of all backgrounds have chosen cleaner streets, safer neighborhoods and healthier communities,” Griffin told the Post in a statement. “We came together to protect quality of life.”
Mr. Griffin donated $12 million to fund anti-marijuana campaigns and was the only major individual donor. DeSantis and other opponents have raised a total of $26 million to block the bill, according to Bloomberg.
On Wednesday, the MJ PurePlay 100 index, which tracks the global cannabis industry, plunged 17%, its biggest decline since February 2021. The company's stock fell another 1.2% on Thursday.
Canadian shares of Trulieve Cannabis Inc., a marijuana retailer and Florida's largest medical cannabis operator, fell as much as 47% on Wednesday, its worst single-day decline. The stock rose 6.4% on Thursday.
Mr. Trulivet had poured nearly $145 million into a $153 million campaign supporting the amendment. According to the Associated Press.
AdvisorShares Pure US Cannabis Exchange Traded Fund fell as much as 30%. It rose 4.5% the next day. Shares of Greenthumb Industries, which sells packaged cannabis products, have plunged as much as 28%. The company's shares rose 5.4% on Thursday.
If the ballot measure had passed, it would have legalized recreational marijuana for Florida's 23 million residents and the state's millions of annual visitors. Trulibé predicted that up to 2.7 million people would enter the legal cannabis market.
According to a Bloomberg report, if Florida were included, about 60% of the U.S. population would have had access to recreational marijuana, which would have made national legalization more likely.
The cannabis industry has invested hundreds of millions of dollars into expanding the state's network of weed farms, processing plants and dispensaries, hoping that legalization will lead to a surge in business.
However, DeSantis' campaign was successful in defeating the amendment, prolonging the fight to legalize marijuana in the state.
Nick Iarossi, a Tallahassee lobbyist and longtime supporter of DeSantis, said DeSantis' campaign is more than just weeds and that his political claims have been growing since former President Donald Trump's victory in the Republican primary. He said that it was a way to reassert himself.
“A lot of people said he was in the twilight of his career, but this shows that's not the case,” Iarossi told Bloomberg.
Meanwhile, Florida voter Donald Trump said he supports the Third Amendment and would vote yes. Roger Stone, one of President Trump's longtime political advisers, also said he would vote in favor of legalizing marijuana.
Florida celebrity personal injury attorney John Morgan became known around the state as “Pot Daddy” for his outspoken support of the amendment.
