Shares of cannabis companies rose after President Donald Trump signed an executive order easing federal regulations, in the biggest change in marijuana regulation since 1970.
The decision to reclassify cannabis as a less dangerous drug does not legalize it, but it eases the operating environment for companies by improving access to capital, reducing the tax burden and accelerating research and development.
Tilray’s US-listed shares rose more than 6%, Aurora Cannabis (ACB.TO) rose almost 9%, SNDL rose 6% and Canopy Growth (WEED.TO) gained almost 12% in afternoon trading.
Trump’s order directs his attorney general to move quickly with the reclassification of marijuana, according to senior administration officials, a process that could lead to the psychoactive plant being included alongside common painkillers, ketamine and testosterone as a less dangerous drug.
“Without the rescheduling, I don’t think many shareholders would buy my shares or many other cannabis stocks,” Tilray Brands CEO Irwin Simon said before the order.
A reclassification would move marijuana from Schedule I, which includes substances such as heroin, ecstasy and peyote that have no accepted medical use, to Schedule III, which covers substances with a moderate to low risk of physical or psychological dependence.
Read: Trump eases restrictions on cannabis to encourage medical research
Trump is considering a Medicare pilot program that would give some seniors access to CBD, according to reports.
Reprogramming and coverage of Medicare would likely attract investment from financial institutions and other investors.
With information from Reuters
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