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  • Aurora Cannabis soared 13% in early trading on Thursday, as Joe Biden’s election lead put him within striking distance of the presidency.
  • The boost in share price may also have been helped by four US states legalizing cannabis for adults above 21 on Tuesday.
  • Other weed stocks including Tilray, Aphria, OrganiGram, and Canopy Growth also rose in pre-market trading.
  • Cannabis stocks initially fell on Wednesday, as prospects of a Republican Senate dimmed hopes for swift federal legalization of marijuana. 
  • Visit Business Insider’s homepage for more stories.

Shares in Canada-based marijuana producer Aurora Cannabis soared 13% in early trading on Thursday, as Democratic nominee Joe Biden’s election lead inched higher, pointing to a major boost for the US cannabis industry.

Democrats have touted commitment to decriminalize marijuana at the federal level in the US if they win.

Aurora was trading higher by as much as 27% at $5.30 a share in pre-market activity on Thursday, up from $4.43 a share the previous day. Its stock is down nearly 90% this year, partly because of ineffective cost-saving strategies. 

The Alberta-based weed-grower fell on Wednesday, along with the rest of the legal pot sector, when the prospect of a Republican-controlled Senate dimmed chances of a swift federal legalization of the drug.

Read More: 7 top cannabis execs break down what marijuana’s election sweep means for their companies and the industry’s future in the US

The stock boost may also have been buoyed by four US states legalizing cannabis for adults aged over 21 on Tuesday. Arizona, New Jersey, and Montana have legalized the recreational sale of cannabis in state-wide ballot initiatives. New Jersey is the largest state on the East Coast to legalize marijuana, presenting the biggest opportunity.

South Dakota also legalized the sale of both medical and recreational cannabis. A big chunk of Americans now live in a state where the sale of cannabis is legal. 

Other Canadian licensed producers also rose alongside Aurora in pre-market trading. Tilray rose 18%, Aphria rose 13%, OrganiGram rose 11%, and Canopy Growth added 8%.

The outcome of the presidential election and some Senate contests is still unclear.

Read More: A Wall Street veteran who has helped launch over 400 ETFs breaks down how the election could be a ‘death knell’ for massive investor inflows — and explains why it could have mutual-fund managers licking their chops

Read the original article on Business Insider