Tilray Inc. (NASDAQ: TLRY) surged 5.51% in pre-market trading, reflecting heightened investor optimism in the cannabis sector. The rally follows reports that U.S. President Donald Trump is poised to sign an executive order rescheduling marijuana from Schedule I to Schedule III under the Controlled Substances Act.
The move would lift the crippling IRS Section 280E tax burden, allowing cannabis companies to deduct standard business expenses and potentially achieve profitability for the first time. Investors are betting on the transformative impact of this regulatory change, which could also ease research restrictions and improve access to capital for the industry. Tilray, as a key player in the cannabis sector, stands to benefit significantly from these developments.
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