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Pot stocks rise after Georgia Senate runoffs

Pot stocks rise after Georgia Senate runoffs
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Cannabis stocks soared Wednesday following Democrats' showing in the Georgia runoffs, with the potential for a Democratic Senate majority raising investors' hopes for the decriminalization of marijuana.

Several cannabis stocks saw double-digit increases Wednesday, including a more than 19 percent increase for Tilray by midday and other large spikes for Canopy Growth, Cronos Group and Hexo Corp.

Other companies such as Aphria Inc. and Aurora Cannabis climbed by roughly 12 percent midday following the results of the Georgia Senate runoffs the previous night.

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Democrat Raphael WarnockRaphael WarnockThe Hill's Morning Report - Presented by The AIDS Institute - Finger-pointing on Capitol riot; GOP balks at Biden relief plan Georgia's GOP-led Senate passes bill requiring ID for absentee voting Koch-backed group launches ads urging lawmakers to reject COVID-19 relief bill MORE was projected to defeat Sen. Kelly LoefflerKelly LoefflerThe Hill's Morning Report - Presented by The AIDS Institute - Finger-pointing on Capitol riot; GOP balks at Biden relief plan Georgia's GOP-led Senate passes bill requiring ID for absentee voting Lawmakers commemorate one-year anniversary of Arbery's killing MORE (R) in their runoff, while Jon Ossoff was leading Republican David PerdueDavid PerdueThe Hill's Morning Report - Presented by The AIDS Institute - Finger-pointing on Capitol riot; GOP balks at Biden relief plan Georgia's GOP-led Senate passes bill requiring ID for absentee voting Perdue rules out 2022 Senate bid against Warnock MORE, whose Senate term ended Sunday, in the other race.

Pot stocks have been on the rise since President-elect Joe BidenJoe BidenBiden 'disappointed' in Senate parliamentarian ruling but 'respects' decision Taylor Swift celebrates House passage of Equality Act Donald Trump Jr. calls Bruce Springsteen's dropped charges 'liberal privilege' MORE's victory in November, with Aurora Cannabis almost doubling on Nov. 6 as it became clear he would win the election.

A Democratic sweep of the Georgia runoffs would put Democrats in control of the Senate, House and White House, raising the prospect for action on marijuana decriminalization and other issues.

“Given Democrat President-elect Joe Biden will take office later this month, and the House remains controlled by the Democrats – a Democratic sweep could clear the way for more progressive cannabis legislation to be passed,” said Aaron Grey of Alliance Global Partners.

Vice-President-elect Kamala HarrisKamala HarrisTo unite America, Biden administration must brace for hate Democratic strategists start women-run media consulting firm Grassley to vote against Tanden nomination MORE has supported the decriminalization of marijuana on a federal level.

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There are 15 states that fully legalized pot and another 16 that have decriminalized it for nonmedical purposes. 

However, marijuana is still banned federally and is illegal to import from other countries or across state lines. A bill was passed in December in the House to decriminalize and tax cannabis, but the Senate blocked it. 

If Ossoff wins his race, the Democrats will have unilateral control of the government for the first time since 2011.