Pot stocks jump as U.S. DOJ moves to reclassify cannabis as a less dangerous drug

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Cineplex shuts its doors in Bridgewater | SaltWire #novascotia #cineplex #bridgewater #closure - Shares of cannabis companies surged on Tuesday afternoon after the U.S. Department of Justice moved to reclassify marijuana as a less dangerous drug.

U.S.-listed shares of Cronos Group, Tilray Brands and Canopy Growth rose between 10.9% to 52%. ETF AdvisorShares Pure US Cannabis soared 21%.Canada-listed Green Thumb Industries and Trulieve Cannabis were up 25% and 31% respectively. The DoJ, which oversees the Drug Enforcement Administration, recommended that cannabis be classified as a so-called schedule three drug, with a moderate to low potential for physical and psychological dependence, instead of schedule one, which is reserved for drugs with a high potential for abuse, two sources confirmed to Reuters.

The proposal, which, if finalized, could potentially be the most significant shift in federal cannabis policy in 40 years, is being sent to the White House Office of Management and Budget for review and to finalize the rule-making process, the sources said.Shares of U.S.-listed marijuana companies had similarly soared in 2019 after Canada legalized recreational marijuana use, but the rally collapsed the following year as underwhelming revenue numbers failed to justify their sky-high valuations.

 

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