Investing.com – Shares of cannabis companies rose Wednesday a day after New York lawmakers passed a bill legalizing recreational use of marijuana by adults.
Under the legislation, those aged 21 and above can possess 3 ounces of marijuana. Residents will now be able to grow marijuana at home, with some conditions.
Shares of Village Farms (TSX:VFF), a greenhouse grower of hemp and vegetables, rose more than 4%. Innovative Industrial Properties (NYSE:IIPR), a REIT that buys and leases industrial real estate used in growing medical marijuana, gained over 2%.
The bill now awaits Gov. Andrew Cuomo’s signature. Cuomo has previously said he would sign it as soon as it reaches his desk. New York will become the 15th state in the U.S. to allow recreational marijuana use.
The law is expected to boost jobs and the state government’s tax revenue.