Tilray and other pot stocks soar as Trump is reportedly ready to reclassify cannabis

By Bill Peters

The move, which could open up medical research on cannabis as well as banking services for growers, follows an executive order to reclassify the substance in December

Tilray, Canopy and other Canadian-licensed cannabis producers have lost billions of dollars over the much of the past decade.

Shares of Tilray and other pot producers rocketed higher on Wednesday following a report that the Trump administration could soon reclassify cannabis, potentially opening up research and banking access long sought by the industry.

The report from Axios, citing an administration official, said the move could come as soon as Wednesday, marking the most significant federal reform relating to the substance in decades.

U.S.-listed shares of Canada-based Tilray Brands (TLRY) finished 14.2% higher. Volume in the stock ballooned to more than 28 million shares, compared with the full-day average over the past 30 days of 2.8 million shares.

Rival Canopy Growth's stock (CGC) climbed 21.1%. Shares of Curaleaf (CURLF), a U.S.-based producer, surged 26.3%.

The AdvisorShares Pure US Cannabis ETF MSOS shot up 19.4% to $5.11. But it was still trading at a fraction of its Feb. 10, 2021, record close of $55.05.

The Justice Department did not immediately respond to a request for comment on the Axios report. A White House official said the Trump administration continues to carry out an executive order, signed by President Donald Trump in December, aimed at reclassifying cannabis and expanding medical research.

The order directed the attorney general to accelerate the process of rescheduling cannabis as a Schedule III drug, the same category as Tylenol with codeine. Cannabis is currently a Schedule I drug, the same category as heroin and LSD.

The December order did not come with a specific timeline, and it would not legalize marijuana. Cannabis stocks spiked in anticipation of the order but sold off afterwards. Even as more U.S. states legalize cannabis, investors in recent years have been waiting for more changes to laws on the federal level.

Analysts have since wondered about the timing of any rescheduling, which has faced a bumpy road in the past, and whether it could lead to bigger tax relief and greater banking access for the industry.

Tilray, Canopy and other Canadian-licensed cannabis producers have lost billions of dollars over the much of the past decade, following years of overexpansion after that country legalized recreational use in 2018.

-Bill Peters

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04-22-26 1742ET