Cannabis stocks rally after AP reports DEA will propose reclassifying drug as Schedule III

Dow Jones05-01

MW Cannabis stocks rally after AP reports DEA will propose reclassifying drug as Schedule III

By Steve Gelsi

AdvisorShares Pure U.S. Cannabis ETF jumps 28%

Cannabis stocks were up sharply on Tuesday on a report by the Associated Press that the U.S. Drug Enforcement Administration is poised to propose the lowering of cannabis to a Schedule III controlled substance.

For more than 50 years, cannabis has been a Schedule I substance under federal law, in the same bucket as heroin and fentanyl.

The AdvisorShares Pure U.S Cannabis ETF $(MSOS)$ was up 22.8%. the Amplify Alternative Harvest EFT MJ gained 11%.

Among individual cannabis stocks, TerreAscend Corp. (TSNDF) was up 21%, Curaleaf Holdings Inc. (CURLF) was up 15.5%, Trulieve Cannabis Corp. (TCNNF) rose 22.4%, Green Thumb Industries (GTBIF) vaulted 23.4%, Cresco Labs Inc. (CRLBF) rose by 17.2% and Verano Holdings Corp. (VRNOF) increased by 24%.

DEA's largest policy change since 1970

The move by the DEA will require a hearing and public comment.

The re-scheduling follows a recommendation last year from the U.S. Department of Health and Human Services to reclassify cannabis as Schedule III, which would allow regulated medical use under federal law.

President Joe Biden mentioned cannabis during his State of the Union speech and Vice President Kamala Harris has also expressed support for cannabis reform.

Citing people familiar with the situation, the Associated Press reported that the DEA's proposal still has to be reviewed by the White House's Office of Management and Budget.

The move would not legalize cannabis for recreational use, but it marks the DEA's largest policy change since it was established by President Richard Nixon in 1970.

Also read:

HHS recommends rescheduling cannabis, and stocks in the sector rally

Cannabis stocks extend gains after Biden White House shows support of marijuana reforms

Cannabis stocks rise after President Biden mentions plant in State of the Union speech

-Steve Gelsi

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

April 30, 2024 13:50 ET (17:50 GMT)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Cannabis stocks rally after AP reports DEA will propose reclassifying drug as Schedule III

Comments