Cannabis stocks surge on reports Trump will reclassify marijuana; Tilray jumps 28%
Trump is expected to tell agencies to reclassify marijuana as a Schedule III drug, The Washington Post reported on Thursday. Such a move would allow cannabis companies to fall under different tax regulations and encourage investment, while placing pot in a class of drug that includes steroids and Tylenol with codeine.
Axios reported the reclassification, which would move marijuana away from a group that includes heroin and into a lower tier with less dangerous drugs, would take place early next year.
Trump previously floated a change in weed’s classification in August.
Pot stocks have struggled since many went public around seven years ago even as cannabis has received broader acceptance and easier state classifications. Tilray shares were down 36% this year before Friday’s move.
Weed producer Tilray Brands surged more than 28% in Friday’s premarket, while Canopy Growth jumped 23%.
Cannabis facility operator Innovative Industrial Properties climbed more than 6%.
The Amplify Seymour Cannabis ETF (CNBS) rallied more than 19%.
