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HomeUncategorizedMarijuana Stocks Rally as DEA Plans to Reclassify Cannabis.

Marijuana Stocks Rally as DEA Plans to Reclassify Cannabis.

Marijuana-related companies’ shares surged following the U.S. Drug Enforcement Administration’s historic reclassification of marijuana into a less dangerous drug category.

Tilray Brands Inc. and Canopy Growth Corp. Gains

  • Tilray Brands Inc. grew 40%.
  • Canopy Growth Corp. gained 79%.
  • MJ PurePlay 100 Index rose 22%.
  • AdvisorShares Pure U.S. Cannabis ETF surged 25%.

DEA’s Reclassification of Marijuana

  • DEA is reviewing marijuana classification since September.
  • Reclassification would remove additional taxes for cannabis companies.
  • Dan Ahrens, Advisorshares Investments LLC managing director, confirms official move.
  • Potential domino effect could occur.
  • Facilitates easier House and Senate action on SAFER Banking.

Cannabis Industry Stocks Rise

  • SAFER Banking Act aims to increase accessibility to banking and financial services.
  • Cannabis industry stocks outperformed S&P 500 Index due to investor anticipation of DEA action.
  • Pot stocks trade at steep discounts to previous highs.

Jefferies’s report on Cannabis Industry

  • Reclassification could boost cash flow by removing extra taxes for cannabis companies.
  • Potential to attract institutional investment due to lack of institutional ownership.
  • Potential to prompt more US states to legalize marijuana, destigmatize use, and facilitate substance study.

Cannabis Legalization in the US

  • Potential for full federal legalization within 5 years.
  • Aids in studying cannabis, filling data gaps on widespread use.
  • Final decision from DEA uncertain.
  • Rule could be published this week, with scheduling announcement expected in the coming months.
  • Rescheduling would be significant federal reform and the most incremental policy change regarding cannabis in a century.

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