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Nine states will vote in November on whether to legalize medical or recreational marijuana, or both.
Leading up to the elections, the industry’s penny stocks are trading as if most states will say yes to legalization.
Shares of marijuana firms that trade over-the-counter – not via central exchanges like the Nasdaq – are rallying in the run-up to the votes.
Companies in the industry struggle to get approved to list on the major exchanges partly because marijuana is still illegal under federal law.
Here’s General Cannabis Corp., which leases space for companies to grow the plant:
And here’s Cannabis Sativa, which Libertarian presidential candidate Gary Johnson was CEO of until he resigned in January. It has a subsidiary that makes moisturizers and lip balm.
Here’s United Cannabis Corp., a provider of medical cannabis treatments:
#Marijuanastocks mania continues into 11/8 when 30% of the US votes on future of pot
— Briefing Trader (@TraderInPlay) October 25, 2016
The results of the votes next month could be a huge deal for the industry. California’s vote is considered the most crucial given the state’s size; its economic output in 2015 made it the sixth largest economy in the world, ahead of countries like France.
The best companies would stand to profit even more in the industry, which is projected to grow to nearly $21 billion by 2020, according to Arcview Market Research.