Proactive Investors - Cannabis stocks are on track to finish the week higher boosted by the news that the U.S. Department of Health and Human Services (HHS) has recommended reclassifying marijuana as a lower-risk drug.
The HHS in a letter dated August 29 told the Drug Enforcement Administration (DEA) that marijuana should be reclassified from Schedule I, being drugs with no medically accepted use and a high potential for abuse, to Schedule III, drugs with a moderate to low potential for physical and psychological dependence.
Other Schedule III drugs include products containing less than 90 milligrams of codeine per dosage unit (such as Tylenol with codeine), ketamine, anabolic steroids, and testosterone.
The DEA will make the final decision on the rescheduling, having now intiatied a review of the drug following the HHS recommendation, according to a statement from a DEA spokesperson.
The rescheduling of marijuana on a federal level would be significant for cannabis companies in the long term, with many operating in states where recreational sales are not legal or being unable to access traditional financial services such as banks.
As such, news of the rescheduling recommendation saw cannabis stocks soar earlier this week, with Jushi Holdings Inc (NLB:JUSH) Inc shares on track to finish the week up about 51% as of the early afternoon on Friday, Planet 13 Holdings Inc (OTC:PLNHF) to add 63% and 1606 Corp. to add 36%.
Major players in the U.S. cannabis space also saw gains, with Canopy Growth (TSX:WEED) set to finish the week 44% higher, Tilray Inc (NASDAQ:TSX:TLRY) up 28%, Trulieve Cannabis Corp (CSE:TRUL) up 57%, Cronos Group (TSX:CRON) Inc up 17%, Curaleaf (CSE:CURA) Hldgs Inc. up 40%, and Green Thumb Industries Inc (CSE:GTII) up 48%.