The cannabis sector has seen a fire lit under it following reports from the Associated Press that the US government is moving to reschedule cannabis. A number of major names in the sector have seen their equities halted as a result of the sudden volatility that hit, following the reporting by AP. Names halted include Tilray, Curaleaf, Cresco Labs, Canopy Growth, Terrascend, Trulieve and more as investors rushed to place their bets.
Names across the space meanwhile have claimed the top gainer leaderboards this afternoon, with operators of all sizes experience substantially gains. Examples include:
- Red White & Bloom Brands (CSE: RWB): +0.03 (60.0%)
- Canopy Growth Corp (TSX: WEED): +5.32 (46.8%)
- C21 Investments (CSE: CXXI): +0.165 (41.8%)
- IM Cannabis Corp (CSE: IMCC): +0.31 (39.7%)
- Tilray Brands (TSX: TLRY): +0.85 (35.3%)
- Aurora Cannabis (TSX: ACB): +2.78 (32.1%)
- Trulieve Cannabis (CSE: TRUL): +4.47 (30.8%)
- Jushi Holdings (CSE: JUSH): +0.28 (30.4%)
The AdvisorShares Pure US Cannabis ETF (NYSE: MSOS) meanwhile has posted a gain of 21.62% on the day to last trade at $10.97.
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The jump follows reports that the US Drug Enforcement Administration will reclassify cannabis as a less dangerous drug, moving cannabis to a Schedule III drug, alongside ketamine and some anabolic steroids. The proposal, to be put forth by the DEA, will see the agency recognize that medical uses exist for cannabis, but would refrain from legalizing it for recreational use.
The proposal must still be reviewed by the White House Office of Management and Budget, after which public comments would be taken on the plan to change its scheduling. The final rule would then be published after a review by an administrative judge.
More to come.
Information for this briefing was found via the Associated Press and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
