Cannabis stocks spiked immediately after President Joe Biden announced the reclassification of cannabis from a Schedule I to a Schedule III drug, endorsing the Justice Department’s recommendation.
Biden posted a video on X at 1 p.m. May 16, declaring that the U.S. Department of Justice would indeed reclassify cannabis, and within hours, cannabis-related stocks began rising amid the growing excitement.
Too many lives have been upended because of our failed approach to marijuana.So today, the @TheJusticeDept is taking the next step to reclassify marijuana from a Schedule I to a Schedule III drug under federal law.Here’s what that means: pic.twitter.com/TMztSyyFYm— President Biden (@POTUS) May 16, 2024
“Today’s step is another historic step moving forward,” Poseidon Investment Management co-founder Emily Paxhia told Yahoo! Finance on an episode of Market Domination. “I think anything around cannabis reform has been very difficult for the past 10 years plus, obviously, and so anything that’s working through an ordinary process and following the steps as it should is very confirmatory.”
Familiar names of bigger players in the industry are popping up. “We’ve seen increasing volumes in the top names in the industry,” Paxhia added.
Multi-state operators (MSOs) would benefit the most from the Schedule III classification, like Canopy Growth, Curaleaf Holdings, Green Thumb Industries, and Trulieve Cannabis, with operations in about three dozen states that allow cannabis sales. Shares of Canopy Growth, an enormous Canadian cannabis producer that trades on the New York Stock Exchange, rose 15%, to $11.95, after the tweet, Barron’s reports.
The reclassification of cannabis doesn’t fix the gap between federal and state law, and it sparked some negative feedback of a potential pharmaceutical takeover.
“On behalf of thousands of legal businesses operating across the country, we commend President Biden for taking this important first step …
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Author: Benjamin M. Adams / High Times
