Cannabis producer stocks popped in U.S. premarket trading on Friday on multiple media reports that President Donald Trump is expected to push for reclassifying marijuana as a less dangerous drug.
Top movers included Tilray Brands (TLRY) +29%, Canopy Growth (CGC) +21%, Aurora Cannabis (ACB) +16%, SNDL (SNDL) +14%, Cronos Group (CRON) +12%.
Trump is considering shifting cannabis from Schedule I—which denotes no medical use and high abuse potential—to Schedule III, a category for substances with lower dependency potential.
Trump earlier Thursday had a call with House Speaker Mike Johnson (R-La.), HHS Secretary Robert F. Kennedy Jr., CMS Administrator Mehmet Oz, and several marijuana industry executives to discuss the matter, The Washington Post reported. A White House official said that no final decision has yet been made.
Schedule III drugs have accepted medical uses, but still have the potential for abuse as well as physical or psychological dependence. Examples include ketamine, anabolic steroids, and Tylenol with codeine. Schedule I drugs include LSD and heroin.
In March 2024, the Department of Justice under the Biden administration proposed rescheduling marijuana to Schedule III. The DEA, however, first rescheduled and then cancelled a hearing on the matter.
Multi-state operators: Ascend Wellness (AAWH), Curaleaf Holdings (CURLF), Cresco Labs (CRLBF), Green Thumb Industries (GTBIF), Trulieve Cannabis (TCNNF), Ayr Wellness (AYRWF), Verano Holdings (VRNO), and Jushi Holdings (JUSHF).
Cannabis ETFs: AdvisorShares Pure Cannabis ETF (YOLO), Amplify Alternative Harvest ETF (MJUS), and Amplify Seymour Cannabis ETF (CNBS).