Cannabis Stocks Surge As Trump Administration Signals Marijuana Reclassification

The Trump administration is preparing to reclassify marijuana as early as Wednesday, Axios reported, citing a White House official.

The news comes some four months following President Donald Trump’s signing of an executive order directing the Attorney General to reclassify marijuana from a Schedule I to a Schedule III drug under the Controlled Substances Act. Currently, cannabis is considered the same drug category as heroin, LSD, and ecstasy.

Trump expressed frustration this past Saturday during a Saturday signing ceremony for a separate psychedelics order, saying federal agencies were “slow-walking” his executive order, reported Cannabis Business Times.

“You’re going to get the rescheduling done, right, please?” Trump asked in the Oval Office. “Will you get the rescheduling done, please? Joe, they’re slow-walking me on rescheduling. OK, you’re going to get it done, right?”

While the move would not legalize marijuana immediately, it would make it easier to study medicinal applications of marijuana by easing U.S. Drug Enforcement Administration restrictions.

Supporters argue this could boost evidence on cannabis benefits for those with conditions like chronic pain, epilepsy, cancer-related symptoms, and neurological disorders.

Cannabis stocks rallied following the news, as investors reacted to improving sentiment and growth expectations.

• Canopy Growth Corporation’s (TSX: WEED) (NASDAQ: CGC) shares traded 19.30% higher at $1.36 per share at the time of writing.
• Tilray Brands, Inc.’s (NASDAQ: TLRY) (TSX: TLRY) shares traded 12.05% higher at $7.72 per share at the time of writing.
• Curaleaf Holdings, Inc.’s (TSX: CURA) (OTCQX: CURLF) shares traded 27.54% higher at $3.89 per share at the time of writing.
• Cresco Labs Inc.’s (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ) shares traded 23.23% higher at $1.22 per share at the time of writing.
• Green Thumb Industries Inc.’s (CSE: GTII) (OTCQX: GTBIF) shares traded 16.18% higher at $8.33 per share at the time of writing.
• TerrAscend Corp.‘s (TSX: TSND) (OTCQX: TSNDF) shares traded 23.46% higher at $0.9 per share at the time of writing.
• Aurora Cannabis Inc.’s (NASDAQ: ACB) (TSX: ACB) shares traded 7.29% higher at $3.82 per share at the time of writing.
• Verano Holdings Corp.’s (Cboe CA: VRNO) (OTCQX: VRNO) shares traded 12.80% higher at $1.41 per share at the time of writing.