Cannabis stocks rally as support builds for DEA rescheduling

Cannabis stocks rallied Tuesday in the wake of news that the US Department of Health and Human Services along with a dozen state attorneys general were urging the US Drug Enforcement Administration to legally reclassify marijuana as a less dangerous substance.

Last Friday, a letter from HHS to the DEA supporting reclassification of marijuana from a Schedule I to a Schedule III substance was made public. In the letter, HHS said it had determined marijuana has legitimate medical uses, which would support its reclassification as a Schedule III drug, a category that includes medications such as Tylenol with codeine.

Currently, marijuana is classified as a Schedule I substance, a category that is reserved for substances that have no accepted medical use and a high potential for abuse. The category includes drugs such as heroin.

Also on Friday, 12 state AGs sent a letter to the DEA urging that the drug be reclassified, arguing that it would help tamp down on unregulated and illicit cannabis products.

Stocks seeing significant gains on Tuesday included multi-state operators MedMen Enterprises (OTCQB:MMNFF), Curaleaf Holdings (OTCPK:CURLF), Acreage Holdings (OTCQX:ACRHF), Cresco Labs (OTCQX:CRLBF), Green Thumb Industries (OTCQX:GTBIF), Trulieve Cannabis (OTCQX:TCNNF), Ayr Wellness (OTCQX:AYRWF), and Ascend Wellness (OTCQX:AAWH).

Also advancing were Grow Generation (GRWG), Jushi (OTCQX:JUSHF), Village Farms (VFF), Canopy Growth (CGC), Tilray Brands (TLRY), Cronos Group (CRON) and OrganiGram Holdings (OGI).