Several of the largest cannabis growers and other marijuana-related stocks took a hit in trading Thursday, reversing gains earlier in the week from California’s full legalization of recreational marijuana.
Terra Tech, the largest US pot stock with a $407 million market cap, was down 35% on the news.
Canopy Growth , the largest Canadian marijuana stock, was trading down about 9%.
Aurora Cannabis plummeted 13% on the news and was trading down roughly 8% mid-morning.
The new policy is expected to allow US attorneys in individual states to decide how to enforce federal marijuana laws in their borders, reversing a 2013 policy memo stating that the federal government wouldn’t interfere with states legalizing marijuana, AP reported.