Cannabis stocks moved sharply higher on reports that President Donald Trump is considering rescheduling marijuana to a less restrictive drug category.
The move would see marijuana reclassified from a Schedule I drug, along with heroin and cocaine, to Schedule III.
This would allow cannabis businesses to claim normal business tax deductions and credits they currently do not have access to and would also facilitate expanded medical research and improve banking access.
Trump mentioned the possibility of reclassification during a fundraising event earlier this month and publicly confirmed on Monday that his administration is “looking at” the issue and expects to make a determination in the coming weeks. He also acknowledged the complexity of marijuana's impact.
Shares of Trulieve Cannabis Corp. (CSE:TRUL) surged 35% and Tilray Inc (NASDAQ:TLRY) was up 32% on the news, while Curaleaf Hldgs Inc. (CSE:CURA, OTCQX:CURLF) added 29% and Canopy Growth Corporation (TSX:WEED, NYSE:CGC) added 24%.
Nevis Brands (CSE:NEVI, OTCQB:NEVIF)’ OTC-listed stock added 17%, as did SNDL (NASDAQ:SNDL), while Aurora Cannabis Inc (TSX:ACB, NASDAQ:ACB) was up 15% and Cronos Group (NASDAQ:CRON) added almost 14%.