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Cannabis stocks surge following potential downgrade of marijuana classification

EditorRachael Rajan
Published 2023-09-05, 03:54 p/m

Cannabis stocks experienced a significant surge today, with industry leaders recording substantial gains. Canopy Growth (TSX:WEED) (NASDAQ: NASDAQ:CGC) led the way with a robust 27.6% increase, while Green Thumb Industries (OTC: OTC:GTBIF) and Curaleaf Holdings (CSE:CURA) (OTC: OTC:CURLF) also saw gains of 14.6% and 14.1% respectively. Additionally, Aurora Cannabis (TSX:ACB) (NASDAQ: NASDAQ:ACB) rose by 6.8%, and Tilray (TSX:TLRY) Brands (NASDAQ: NASDAQ:TLRY) added a steady 4.5% to its share price.

This upward trend in the marijuana industry comes after the U.S. Department of Health and Human Services (HHS) recommended late last month that the U.S. Drug Enforcement Agency (DEA) downgrade marijuana from a Schedule I to a Schedule III controlled substance. This is a significant shift that investors have been anticipating for nearly a year.

President Joe Biden's administration has been credited for this positive momentum in the cannabis sector. The proposed downgrade of marijuana's classification could potentially ease restrictions on research and medical use of the drug, creating opportunities for growth within the industry.

The news over the weekend further bolstered investor sentiment, contributing to today's rally in cannabis stocks. However, specific details about these developments were not disclosed in the context provided.

The surge in these shares underscores the market's positive response to potential regulatory changes that could open up new avenues for cannabis businesses in the United States.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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