- In a groundbreaking move, the United States is set to reclassify cannabis as a lower-risk substance
- The anticipated recommendation by the U.S. Department of Justice to reschedule marijuana as a Schedule III controlled substance places it in the same category as prescription drugs like ketamine and Tylenol with codeine
- As the U.S. government moves forward with its plan to reclassify marijuana, investor interest in cannabis stocks is expected to remain high
- Canopy Growth stock closed at C$20.26 per share, Aurora Cannabis stock last traded at C$12.48 and Tilray stock closed at C$3.41 per share
In a groundbreaking move, the United States is set to reclassify cannabis as a lower-risk substance.
Acknowledging its medical benefits, signalling a significant cannabis policy shift
This move, first reported Tuesday by The Associated Press and based on insider information, carries heavy implications for cannabis-related research, industry regulation, and investment opportunities.
The anticipated recommendation by the U.S. Department of Justice to reschedule marijuana as a Schedule III controlled substance places it in the same category as prescription drugs such as ketamine and Tylenol with codeine. This reclassification not only validates the therapeutic potential of cannabis but also paves the way for broader acceptance and legalization efforts across the United States.
Investors are taking note of this pivotal development, with several cannabis stocks experiencing notable gains in response to the news.
Three key industry players on both sides of the border
Canopy Growth Corp. (TSX:WEED, NASDAQ:CGC): Canopy Growth is a leading diversified cannabis and cannabinoid-based consumer product company. With a global presence and a portfolio of well-known brands, including Tweed and Spectrum Therapeutics, Canopy Growth is positioned as a frontrunner in the cannabis market.
Canopy Growth stock closed 78 per cent higher at C$20.26 per share.
Aurora Cannabis Inc. (TSX:ACB, NASDAQ:ACB): Aurora Cannabis is a vertically integrated cannabis company that operates across multiple segments, including cultivation, manufacturing, and distribution. The company is known for its high-quality cannabis products and strategic partnerships.
Aurora Cannabis stock closed 44 per cent higher Tuesday, last trading at C$12.48.
Tilray Brands Inc. (TSX:TLRY, NASDAQ:TLRY): Tilray is a global pioneer in cannabis research, cultivation, and distribution. With a focus on innovation and sustainability, the company has established itself as a key player in the medical and adult-use cannabis markets.
Tilray stock was up 41 per cent, closing at C$3.41 per share.
Cannabis stocks are on fire
Even the Canadian Securities Exchange, the self-proclaimed world’s leading stock exchange for cannabis, saw an uncharacteristic 30-point jump in Tuesday trading.
As the U.S. government moves forward with its plan to reclassify marijuana, investor interest in cannabis stocks is expected to remain high. While the full impact of this regulatory change may take time to unfold, companies such as Canopy Growth, Aurora Cannabis and Tilray are well-positioned to capitalize on the growing acceptance and legalization of cannabis.
Regulatory developments, market dynamics and company-specific factors can all influence the performance of cannabis stocks in the months and years ahead, so consistent due diligence is key.
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