Pot producers are on the rise as Florida voters decide on the fate of the use of recreational marijuana

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U.S.-listed shares of pot producers rose premarket on Tuesday after the Florida Supreme Court on Monday allowed voters to decide on the fate of recreational use of marijuana in the state through a referendum on the November ballot.

If passed, adult-use cannabis will be legal in the country's third-most populous state.

WHY IT IS IMPORTANT

Florida can become the next top prize for regulated U.S. marijuana operators. It has a population of more than 22 million and is also an important medical cannabis market.

OK RESIDENTS TO VOTE ON LEGALIZING RECREATIONAL MARIJUANA TUESDAY

It could add to the Biden administration's efforts to push cannabis reforms such as seeking to ease the treatment of the psychoactive plant under federal law and pardoning thousands of convictions for mere possession of the drug.

Florida's voters will have the opportunity to decide whether the state should legalize the recreational use of cannabis. (REUTERS/Carlo Allegri/File Photo)

The U.S. health agency last year also proposed to reclassify cannabis as a lower-risk substance, boosting expectations of legalization at the federal level.

U.S-listed shares of pot firms SNDL, Tilray Brands, Aurora Cannabis and Canopy Growth climbed between 1% and 6.8% before the bell. Adult-use cannabis is legal in 24 U.S. states and also in the District of Columbia, Guam and the Northern Mariana Islands.

"As the nation's largest medical cannabis market with a high population and significant political influence, Florida has the chance to make history by joining the growing majority of Americans who say 'yes' to legal regulated cannabis and the wealth of positive health, wellness and economic benefits this incredible plant provides millions of individuals and countless communities every day," said George Archos, CEO of Verano Holdings.

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"We are thankful that the Court has correctly ruled the ballot initiative and summary language meet the standards for single subject and clarity. We look forward to supporting this campaign as it heads to the ballot this November," said Kim Rivers, CEO of Trulieve Cannabis.