Pot Stocks Are On Rise After Marijuana Reclassification Report
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Cannabis-related stocks surged sharply after the Associated Press cited sources to report that the Drug Enforcement Administration (DEA) is set to reclassify marijuana as a less dangerous drug. The proposal will be a historic shift to generations of American drug policy. It will be reviewed by the White House Office of Management and Budget, which would recognize the medical uses of cannabis and acknowledge it has less potential for abuse than some of the nation’s most dangerous drugs. However, it would not legalize marijuana outright for recreational use.
Among the rising pot stocks were Curaleaf Holdings (OTCPK:CURLF), Cresco Labs (OTCQX:CRLBF), Ascend Wellness (OTCQX:AAWH), Green Thumb Industries (OTCQX:GTBIF), Ayr Wellness (OTCQX:AYRWF), Trulieve Cannabis (OTCQX:TCNNF), Verano (OTCQX:VRNOF), and Jushi Holdings (OTCQX:JUSHF). All of them recorded double-digit percentage gains.
Cannabis-related ETFs AdvisorShares Pure Cannabis ETF (NYSEARCA:YOLO), ETFMG Alternative Harvest ETF (NYSEARCA:MJ), and Amplify Seymour Cannabis ETF (NYSEARCA:CNBS) also rose sharply.
Other stocks that witnessed notable gains are: Cronos (CRON), Aurora Cannabis (ACB), SNDL Inc. (SNDL), OrganiGram (OGI), Flora Growth (FLGC), MariMed (OTCQX:MRMD), WM Technology (MAPS), Planet 13 Holdings (OTCQX:PLNH), Charlotte’s Web (OTCQX:CWBHF), Entourage Health (OTCPK:ETRGF), Glass House Brands (OTC:GLASF), PharmaCielo (OTCPK:PCLOF), High Tide (HITI), and PharmaCielo (YCBD).
The Associated Press further reports that once OMB signs off on the proposal, the DEA will make a public statement. Marijuana, which is classified as a Schedule I drug alongside heroin and LSD, will be moved to Schedule III, alongside ketamine and some anabolic steroids. After the public comment period and a review by an administrative judge, the agency would eventually publish the final rule.
