LFLY - Cannabis stocks rally amid report Biden supports legalization for medical use

2023-09-05 16:23:40 ET

Curaleaf, Trulieve, Cresco and several other cannabis stocks rallied Tuesday amid a report that President Biden supports legalizing marijuana for medical purposes.

Stocks seeing double-digit gains included Curaleaf ( OTCPK:CURLF ), Canopy Growth ( CGC ), Medical Marijuana ( OTCPK:MJNA ), Leafly ( LFLY ), Cresco Labs ( OTCQX:CRLBF ), Trulieve Cannabis ( OTCQX:TCNNF ), Columbia Care ( OTCQX:CCHWF ), Verano ( OTCQX:VRNOF ), Jushi ( OTCQX:JUSHF ), Ayr Wellness ( OTCQX:AYRWF ) and Green Thumb ( OTCQX:GTBIF ).

Cannabis ETFs also climbed, including AdvisorShares Pure Cannabis ETF ( YOLO ), Amplify Seymour Cannabis ETF ( CNBS ), ETFMG Alternative Harvest ETF ( MJ ), AdvisorShares Pure US Cannabis ETF ( MSOS ), and Global X Cannabis ETF ( POTX ).

Earlier Tuesday, cannabis news outlet Marijuana Moment reported that White House Press Secretary Karine Jean-Pierre said during a briefing on Friday that Biden has “always” supported the legalization of cannabis for medical purposes.

Jean-Pierre reportedly made the comment in response to a question about reports that the DEA may reclassify cannabis as a Schedule III substance. Cannabis is currently classified as a Schedule I substance, the DEA's highest risk category.

Cannabis stocks have been on a roll since last week when Bloomberg reported that the US government was moving to have the drug reclassified as a Schedule III substance.

Schedule I drugs are considered to have a high potential for abuse with no currently accepted medical use. The category includes drugs such as heroin and LSD. Schedule III drugs are defined as having low risk for psychological or physical dependence. Schedule III drugs include Tylenol with codeine, ketamine and anabolic steroids, according to the DEA’s website.

More on cannabis stocks:

• Cannabis stocks rally amid reports DEA may reclassify drug as less risky
• Canopy Growth Rallies On Possible Rescheduling Of Cannabis: Time To Buy
• MSOS: Cannabis Stocks Soar On HHS Recommendation To Reschedule, Buy These 3 Stocks Now
• Bernstein says reclassifying cannabis as Schedule III not preferred outcome

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