Tilray, Canopy Growth And SNDL Soar On Hopes Trump Will Reclassify Marijuana On Monday

President Trump is reportedly expected to issue an executive order as soon as Monday allowing for reclassification of marijuana.

• Trump first hinted at reclassifying marijuana as a less dangerous drug in August.
• The president is expected to seek to ease access to the drug through an upcoming executive order that directs federal agencies to pursue reclassification, the Washington Post reported on Thursday. 
• Marijuana remains a Schedule I drug under federal law — the same category as heroin and LSD.

Shares of Cannabis stocks Tilray (TLRY), Canopy Growth (CGC) and others soared on Friday following a media report that the White House is expected to ease federal restrictions on marijuana as soon as Monday.

While shares of Tilray closed 44% higher on Friday, Canopy Growth stock closed 54% higher. Shares of SNDL Inc (SNDL) gained 25%.

According to a report from CNBC, citing an unnamed person familiar with the matter, President Trump is expected to issue an executive order as soon as Monday allowing for reclassification of marijuana.

Trump first hinted at reclassifying marijuana as a less dangerous drug in August. On Wednesday, Trump reportedly discussed the plan with House Speaker Mike Johnson, a Republican, in a call that also included marijuana industry executives, Health Secretary Robert F. Kennedy Jr., and CMS chief Mehmet Oz.

The president is expected to seek to ease access to the drug through an upcoming executive order that directs federal agencies to pursue reclassification, the Washington Post reported on Thursday, citing unnamed sources. The move might not legalize or decriminalize marijuana, but it would ease barriers to research, the report said.

Current Classification

Marijuana remains a Schedule I drug under federal law — the same category as heroin and LSD — a classification reserved for substances deemed to have high abuse potential and no accepted medical use.

Trump is expected to classify marijuana as a Schedule III substance, indicating that it has a lesser potential for abuse and is allowed for use in specific medical treatments, but can also create risks of physical or psychological dependence.

Other Schedule III drugs include Tylenol with codeine, as well as specific steroid and hormone treatments.

However, according to Forbes, a White House official said that “no final decisions have been made on the rescheduling of marijuana.”

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around TLRY and CGC are trending in the ‘extremely bullish’ territory, coupled with ‘extremely high’ message volume.

While TLRY stock has dropped 9% this year, CGC has lost 37%. 

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