The marijuana industry is booming as the Georgia Senate Runoff election is underway, and the results lean towards the Democrats.
Stock leaders such as Tilray ($TLRY) and Aurora Cannabis ($ACB) are charging ahead with over 15% gains in pre-market. Other competitors all gaining with 10%+ at the open.
With Democrats within striking distance of taking over Georgia, this creates a positive catalyst for marijuana because it increases the likelihood of legalisation passing in the Senate.
In hindsight this price action was expected since the industry didn’t take off as much as the market did during the 2020 bull run.
The main issue for the industry is the legalisation. With marijuana legalised this creates room for researchers to development intel on the plant. Not only that, but more institutional investors would get into the industry if it’s legal.
Recently, the United States took marijuana off Schedule I of the controlled Substances Act, which was proposed in 1972 and tightly restricts the medical use of the listed drugs.
With democratic president-elect, Joe Biden, and Georgia officially becoming a blue state, the road to ‘420’ becomes less complex.
Democrats Gain Ground
Democrat Raphael Warnock, senior pastor at Ebenezer Baptist church in Atlanta, defeated Republican Kelly Loeffler in one of the runoff elections.
Singled out, Warnock’s win will have a seismic effect.
Warnock said on Wednesday morning: “I cannot tell you how honored I am that the people have decided to send me to the US Senate to represent their concerns at this defining moment in American history.”