Marijuana stocks rise as Michigan legalizes recreational use

Leading marijuana stocks surged in midday trading Wednesday after Michigan became the 10th state in the U.S. to legalize pot for recreational purposes.

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Michigan’s Proposal 1, which passed with 56 percent of the vote, allows adults aged 21 or older to possess up to 2.5 ounces of marijuana on their person or as much as 10 ounces in their homes. State residents can also grow up to 12 marijuana plants without a license, or buy pot legally from licensed businesses.

Shares of leading pot manufacturers Aurora Cannabis, Tilray and Canopy Growth all rose on the news.

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TLRYTILRAY INC19.24+0.73+3.94%

Michigan will impose a 10 percent tax on marijuana-related transactions in addition to a 6 percent sales tax. Marijuana likely won’t be commercially available until early 2020, according to the Detroit Free Press.

Michigan was one of several states to vote on marijuana-related measures on Election Day. Voters in North Dakota rejected a proposal that would have fully legalized marijuana and erased prior convictions for pot-related crimes that would have been legal under the proposed law’s terms.

Utah and Missouri approved the use of marijuana for medicinal purposes.

Marijuana is legal for recreational purposes in 10 states, as well as Washington, D.C. Pot is still banned at the federal level.