Shares of Canadian marijuana producer Aurora Cannabis were soaring as much as 40% on Thursday as Democrat candidate Joe Biden inched closer to a presidential election victory.
Shares may have also been driven higher as the U.S. saw four more states legalize cannabis for adults aged over 21 on election night. On Tuesday New Jersey, and Montana legalized the recreational sale of cannabis in state-wide ballot initiatives.
New Jersey also legalized the plant making it the largest state on the East Coast to legalize marijuana. South Dakota additionally legalized the sale of both medical and recreational cannabis.
Other cannabis related stocks including Tilray, OrganiGram, Canopy Growth, and Aphria also saw their shares rise on Thursday. At intraday peaks on Thursday, Tilray rose 33%, Aphria added 14%, OrganiGram increased 16%, and Canopy Growth climbed 14%.
Initially some pot stocks had fallen on Wednesday as the idea of a Republican driven Senate again curbed enthusiasm for fast legalization of the plant. Democrats however have been promising to decriminalize marijuana at the federal level.
With the prospect of Biden winning, Aurora shares climbed 40%, to $6.19, at intraday highs after closing at $4.43 on Wednesday. Heading into Thursday, the stock had dropped 83% on a year-to-date basis.
Canadian cannabis producers are looking to enter the lucrative U.S. cannabis market but have been prohibited from doing so and keeping their shares listed on major U.S. stock exchanges. Marijuana currently remains illegal at the federal level in the U.S.
The outcome of the presidential election and some Senate contests is still unclear.