Cannabis stocks fell Wednesday after Florida Governor Ron DeSantis and billionaire Ken Griffin successfully defeated a marijuana legalization measure on the ballot.
Amendment 3 – which would have legalized recreational use of marijuana – to the state constitution failed to receive the 60% support needed to pass under Florida law. 55.9% i.e. about 6 million votes were received in its favor.
According to one, the defeat of the measure was a major victory for DeSantis, who had campaigned against the legislation. Bloomberg report,
According to records, the governor used millions in state funds to run political ads against the amendment Received by Seeking RentA newspaper based in Florida.
He and his wife Casey held news conferences with law enforcement, during which they complained about the smell of weed and the threat of increased crime.
Along the way, he picked up support from hedge fund manager Griffin, who owns Citadel and Citadel Securities – both of which recently moved to Miami from Chicago. According to Forbes, Griffin has a net worth of $46 billion.
“Floridians of all backgrounds chose cleaner streets, safer neighborhoods and healthier communities,” Griffin told The Post in a statement. “We united to protect our quality of life.”
Griffin gave $12 million to fund the anti-pot campaign and was the only major individual donor. In total, DeSantis and other opponents raised $26 million in funding to block the move, according to Bloomberg.
On Wednesday, the MJ PurePlay 100 index, which tracks the global cannabis industry, fell 17% – the biggest decline since February 2021. Its shares fell 1.2% on Thursday.
Canadian shares of Trulieve Cannabis Corp., a marijuana retailer and Florida’s largest medical marijuana operator, fell as much as 47% on Wednesday — its worst one-day decline. The stock rose again 6.4% on Thursday.
Trulieve invested approximately $145 million in the $153 million campaign in support of the amendment, According to the Associated Press,
The AdvisorShares Pure US Cannabis exchange-traded fund fell as much as 30%. The next day it rose 4.5%. Shares of Green Thumb Industries, which sells packaged cannabis goods, fell as much as 28%. Its stock rose 5.4% on Thursday.
Had the ballot measure passed, it would have legalized recreational marijuana for Florida’s 23 million residents and millions of annual tourists to the state. Trulieve estimated that at least 2.7 million people would have been exposed to the legal weed market.
According to Bloomberg reports, about 60% of the US population, including Florida, will have access to recreational marijuana, making national legalization more likely.
The cannabis industry invested millions of dollars in expanding weed farms, processing plants and dispensary networks across the state in hopes that legalization would increase business.
But DeSantis’ campaign successfully repealed the amendment, prolonging the fight over weed legalization in the state.
Nick Erosi, a Tallahassee lobbyist and longtime DeSantis supporter, said DeSantis’ campaign was about more than weeding out — it was a way to restore his political claim after former President Donald Trump’s victory in the GOP primary.
“A lot of people were saying he was at the end of his career, but this shows that’s not the case,” Erosi told Bloomberg.
Meanwhile, Florida voter Donald Trump supported Amendment 3 and said he would vote yes. Roger Stone, one of Trump’s longtime political advisers, also said he would vote in favor of weed legalization.
Floridian celebrity injury attorney, John Morgan, also became known as the “Pot Daddy” across the state because he unequivocally supported the amendment.
