Cannabis stocks rally as Trump reportedly weighs rescheduling

Shares of Canadian cannabis companies climbed in the premarket trading on Monday after The Wall Street Journal reported that President Donald Trump is considering whether to reschedule marijuana as a less dangerous drug under the Controlled Substances Act.

At a $1M-a-plate fundraiser event at his New Jersey golf club attended by top industry executives, including Kim Rivers, CEO of Trulieve Cannabis (OTCQX:TCNNF), earlier this month, Trump said that he is interested in the change, the publication reported, citing people familiar with the matter.

Canadian LPs Canopy Growth (NASDAQ:CGC), Tilray (NASDAQ:TLRY), Cronos (CRON), Aurora Cannabis (NASDAQ:ACB), SNDL Inc. (NASDAQ:SNDL), and OrganiGram Holdings (OGI) are among notable gainers.

Cannabis-related U.S. stocks, such as GrowGeneration (GRWG). Village Farms International (VFF) and WM Technology (MAPS) are also on the rise.

Stocks to watch include U.S. MSOs, Curaleaf Holdings (OTCPK:CURLF), Acreage Holdings (ACRHF), Cresco Labs (OTCQX:CRLBF), Green Thumb Industries (OTCQX:GTBIF), Trulieve Cannabis (OTCQX:TCNNF), Ayr Wellness (OTCQX:AYRWF), TerrAscend (OTCQX:TSNDF), Clever Leaves Holdings (OTC:CLVR), Flora Growth (FLGC), and Verano Holdings (OTCQX:VRNOF).

Cannabis-related ETFs: AdvisorShares Pure Cannabis ETF (YOLO), Global X Cannabis ETF (POTX), ETFMG Alternative Harvest ETF (MJ). Amplify Seymour Cannabis ETF (CNBS), AdvisorShares Pure US Cannabis ETF (MSOS)

Trump’s remarks come at a time when the cannabis rescheduling review launched under the Biden Administration last year remains stalled at the U.S. Drug Enforcement Agency (DEA) following a legal challenge filed by several reformists.

Cannabis is currently grouped with dangerous drugs such as heroin in Schedule I under the CSA, and the proposed legal change will see it categorized in Schedule III alongside medications such as Tylenol and ketamine.