Tilray Brands (NASDAQ: TLRY) has seen a significant increase in its stock, jumping 65% in just a week, according to data from S&P Global Market Intelligence. Investors are hopeful that the Trump administration may take steps to alleviate some of the stringent regulations that have burdened the cannabis industry.
Reports suggest that President Trump is contemplating reclassifying marijuana from a Schedule I drug to a Schedule III drug. A decision could potentially be announced as soon as Monday, December 15th. Schedule I drugs are classified by the U.S. Drug Enforcement Administration (DEA) as having no accepted medical use and a high potential for abuse, which includes substances like ecstasy and heroin. In contrast, Schedule III drugs are viewed as having a moderate to low potential for dependence, examples of which include certain medications like Tylenol with codeine.
Changing the classification of marijuana could open doors for cannabis companies, allowing them better access to banking and traditional financial services. This shift might also enable them to claim federal tax credits for various business expenses that are currently not eligible, likely resulting in increased after-tax profits for Tilray and its counterparts.
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