CSE:RIV - Post Discussion
Post by
prone on Aug 31, 2023 3:00pm
Coming soon ....
3 hours ago by Thomson Reuters
(Adds analyst comment in paragraph 3, updates shares in paragraph 4-6 paragraphs)
Aug 31 (Reuters) - Shares of marijuana companies jumped as much as 37% in morning trading on Thursday after a U.S. health agency's proposal to reclassify it as a lower-risk substance boosted expectations of legalization at the federal level.
Nearly 40 U.S. states have legalized marijuana's use in some form but efforts at the federal level have hit a wall, leaving some investors cagey and the sector dependent on non-traditional sources for funding.
"A move to Schedule III would eliminate the onerous tax treatment of U.S. MSOs, and represent a major legitimizing event for the industry that could draw participation from institutions and strategic investors who have hitherto largely been sidelined by its Schedule I status," said Eight Capital analyst Ty Collin.
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