It's business as usual for New Zealand's medicinal cannabis companies, following the narrow defeat of the recreational cannabis referendum

Shares in Rua Bioscience and Cannasouth have taken a hit on the news of Friday's result.

Both companies say their business models are based on producing cannabis only for therapeutic purposes -- which has been legal since April, and wasn't covered by the referendum.

Greg Smith at Fat Prophets says their share prices may recover, when investors realise the distinction.

He says appears investors to have been confused about the impact of the recreational cannabis referendum, on the completely separate issue of medicinal cannabis.