Marijuana vote to watch in US mid-term elections

California, Colorado and seven other states have legalized marijuana for recreational purposes and about 30 states have already adopted cannabis for medical purposes.

On Tuesday, other states could be added to these lists, two states considering approving marijuana for recreational purposes and two others voting on the use of the drug for medical purposes. While the votes should have little effect on Canadian marijuana companies, as some guidelines prevent most of the United States from operating because of certain listings guidelines, Michigan, particularly , intrigues cannabis investors.

Here are the key races to watch

Michigan: With nearly 10 million inhabitants, the State of the Great Lakes is the most important to vote for the legalization of the recreational pot in this electoral cycle. Called Proposition 1, the law is simple: people aged 21 and over can have and use weed and the state will put in place a system to regulate the licensing of producers and retailers. Local governments may choose to keep cannabis companies or restrict their activities. The voting measure sets a 10% tax on pot sales.

Although Aurora Cannabis Inc.

CBA + 4.70%

CBA + 3.91%

had to sell its holdings of US companies earlier this year after the Toronto Stock Exchange threatened to write it off, Aurora retained the option to buy back shares in at least one former subsidiary, Australis Capital. Currently listed on the Canadian Securities Exchange – a trading venue with fewer disclosure requirements – Australis, through one of its subsidiaries, is studying the medical cannabis market in Michigan. If Michigan voted in favor of legalizing use by adults, Australis may be able to capitalize on change through work already done on the medical side.

A guide to jar stocks: What you need to know to invest in cannabis companies

Aphria Inc.

APHA + 5.35%

APHA + 2.08%

has a similar option to buy back a stake in Liberty Health Sciences, divested at the beginning of the year due to pressure from the TSX. Currently, Liberty Health operates in Florida.

North Dakota: Measure 3 in North Dakota, where the medical pot is already legal, is unusual. Although this initiative legalizes marijuana for recreational purposes, it does not contain any legislation on taxes or regulations, leaving these aspects to state legislators. The voting measure however sets the minimum age to buy recreational pot at 21, clear the criminal record pot convictions and add penalties for the sale of weeds to those under 21, among others .

Utah: The state is about to legalize the medical pot, except that residents will not be allowed to smoke, eat or grow grass. Utah Proposal 2 would legalize its use for medicinal purposes, but users would not be allowed to smoke the plant (the wording of the law seems to be appropriate). State legislators have added two other measures that would replace or remove parts of the proposal as part of a compromise to appease various groups in the state, and they would not allow for cannabis-based products or cannabis cultivation. plants at home. Otherwise, Proposition 2 itself is somewhat standard: it gives patients the right to access a medical pot for certain conditions and creates a licensing system for producers and stores.

Read also: Curaleaf is illegal at the federal level (like all American pot companies), but it suddenly has a value of 4 billion dollars

Missouri: The ballot will introduce three measures that will legalize marijuana for medical purposes. Two changes to the state constitution, which means that if lawmakers want to change marijuana laws once they have been passed, they will have to submit it again to a state vote. Each measure taxes the drug slightly differently, but all will let the state set up a licensing and regulation system for medical jar stores. The measures also include different qualifying medical conditions.

Other breeds: The legalization of the pot has not been turned into a party ploy for Republicans or Democrats, but industry groups such as the National Cannabis Industry Association are keeping a close watch on what to watch for in the House and Senate for possible action federal ban on cannabis.