{"id":26746,"date":"2024-05-01T00:34:31","date_gmt":"2024-05-01T05:34:31","guid":{"rendered":"https:\/\/ustower.net\/?p=26746"},"modified":"2024-05-01T00:34:40","modified_gmt":"2024-05-01T05:34:40","slug":"pot-stocks-jump-as-u-s-doj-moves-to-reclassify-cannabis-as-a-less-dangerous-drug","status":"publish","type":"post","link":"https:\/\/ustower.net\/?p=26746","title":{"rendered":"Pot stocks jump as U.S. DOJ moves to reclassify cannabis as a less dangerous drug"},"content":{"rendered":"\n<p class=\"has-medium-font-size wp-block-paragraph\">April 30 (Reuters) &#8211; Shares of cannabis companies surged on Tuesday afternoon after the U.S. Department of Justice (DoJ)&nbsp;<a href=\"https:\/\/www.reuters.com\/world\/us\/us-drug-enforcers-ease-restrictions-cannabis-ap-reports-2024-04-30\/\"><u>moved to reclassify<\/u><\/a>&nbsp;marijuana as a less dangerous drug.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">U.S.-listed shares of Cronos Group , Tilray Brands&nbsp;<a href=\"https:\/\/www.reuters.com\/markets\/companies\/TLRY.O\"><u>(TLRY.O), opens new tab<\/u><\/a>&nbsp;and Canopy Growth rose between 14.9% and 67.7%, while ETF AdvisorShares Pure US Cannabis&nbsp;<a href=\"https:\/\/www.reuters.com\/markets\/companies\/MSOS.P\"><u>(MSOS.P), opens new tab<\/u><\/a>&nbsp;soared 24.8%.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">Canada-listed Green Thumb Industries&nbsp;<a href=\"https:\/\/www.reuters.com\/markets\/companies\/GTII.CD\"><u>(GTII.CD), opens new tab<\/u><\/a>&nbsp;and Trulieve Cannabis&nbsp;<a href=\"https:\/\/www.reuters.com\/markets\/companies\/TRUL.CD\"><u>(TRUL.CD), opens new tab<\/u><\/a>&nbsp;were also up 26.6% and 37.3%, respectively.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">Cannabis firms are taxed under section 280E as a part of Schedule I drug, which disallows them from deducting normal business expenses from their profit, increasing tax burden for the companies. Reclassifying to Schedule III would eliminate this tax, helping towards their profitability.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">&#8220;This would result in meaningful cash benefits for operators and we estimate a cash benefit upwards of $150 mln,&#8221; Alliance Global Partners analyst Aaron Grey said in a note.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">The proposal, which, if finalized, could potentially be the most significant shift in federal cannabis policy in 40 years, is being sent to the White House Office of Management and Budget for review and to finalize the rule-making process, sources told Reuters.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">The reclassification will not legalize marijuana outright for recreational use.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">Shares of U.S.-listed marijuana companies had similarly soared in 2019 after Canada legalized recreational marijuana use, but the rally collapsed the following year as underwhelming revenue numbers failed to justify their sky-high valuations.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\"><a href=\"https:\/\/www.reuters.com\/markets\/us\/pot-stocks-jump-us-doj-moves-reclassify-cannabis-less-dangerous-drug-2024-04-30\/\">reuters<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>April 30 (Reuters) &#8211; Shares of cannabis companies surged on Tuesday afternoon after the U.S. Department of Justice (DoJ)&nbsp;moved to reclassify&nbsp;marijuana as a less dangerous drug. U.S.-listed shares of Cronos Group , Tilray Brands&nbsp;(TLRY.O), opens new tab&nbsp;and Canopy Growth rose between 14.9% and 67.7%, while ETF AdvisorShares Pure US Cannabis&nbsp;(MSOS.P), opens new tab&nbsp;soared 24.8%. Canada-listed [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":26748,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5784],"tags":[2029,2861,1456,24800],"class_list":["post-26746","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-health","tag-doj","tag-drugs","tag-marijuana","tag-stock"],"_links":{"self":[{"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts\/26746","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=26746"}],"version-history":[{"count":1,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts\/26746\/revisions"}],"predecessor-version":[{"id":26751,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts\/26746\/revisions\/26751"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/media\/26748"}],"wp:attachment":[{"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=26746"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=26746"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=26746"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}