By Dean Seal
Some major U.S. cannabis stocks were trading higher Thursday, a day after the Drug Enforcement Administration confirmed it is reviewing marijuana’s federal drug classification.
AdvisorShares Pure US Cannabis, a popular exchange-traded fund tracking marijuana stocks, was up 4% at $7.43 in early trading.
Shares of Curaleaf, the biggest U.S. cannabis company by revenue, were up 5% at $4.44. Trulieve Cannabis’ stock was up 4% at $5.48 while shares of Cresco Labs rose 8.5% at $1.58.
The DEA told lawmakers in a letter Wednesday that it is currently conducting its review of marijuana’s classification as a Schedule 1 drug and retains “final authority” to make any rescheduling decisions.
The review follows a recommendation from the Department of Health and Human Services for the DEA to reclassify marijuana as a less dangerous Schedule 3 drug. Doing so would remove an onerous tax regime in place for cannabis businesses and open up other avenues for relaxing federal restrictions around cannabis.
Write to Dean Seal at dean.seal@wsj.com
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