CGC - Here's What Marijuana Rescheduling Won't Fix in the Industry
2024-06-02 12:05:00 ET
The Drug Enforcement Administration (DEA) may soon reclassify marijuana from a highly risky substance with no accepted medical use in its Schedule I classification down to Schedule III, where there's some acknowledgment that it does have potential medicinal benefits. That would mean pot would no longer be grouped in with heroin, ecstasy, and LSD.
The optimism behind such a move is what has made investors bullish on marijuana stocks this year. Since January, shares of some of the more iconic and recognizable cannabis companies have been on the rise -- Curaleaf Holdings stock has jumped by 15% while Canadian pot producer Canopy Growth (NASDAQ: CGC) , which is eager to jump into the U.S. market, has seen its shares skyrocket by close to 80% thus far.
But cannabis investors have been burned in the past by expecting too much when it comes to potential marijuana reform. Rescheduling cannabis would help make it easier to research cannabis, and it can even lower tax bills for U.S.-based companies, but it wouldn't clear all the hurdles for the industry.
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Here's What Marijuana Rescheduling Won't Fix in the Industry