Tilray Brands Soars on Reports of Likely US Marijuana Reclassification

Core Insights - Shares of Tilray Brands, Inc. (TLRY) surged 44.1% on December 12, 2025, due to reports of a potential executive order from President Donald Trump to reclassify marijuana under federal law, marking one of TLRY's strongest single-day gains in years [2][8] - The anticipated reclassification could significantly alter U.S. drug policy, easing federal restrictions that have historically limited banking access, increased tax burdens, and constrained institutional investment in the cannabis sector [3] - The reclassification prospect has raised hopes for lower compliance costs and improved profitability for U.S. operators, while international companies like Tilray may find clearer pathways for expansion and partnerships in the U.S. market [4] Industry Impact - The surge in TLRY's stock also positively affected other cannabis-related stocks, with Canopy Growth Corporation (CGC) and Aurora Cannabis Inc. (ACB) experiencing gains of 54% and 18.7%, respectively, as investors anticipate broader reforms that could include expanded research and easier access to capital [5] - Despite the rally, the cannabis sector remains highly volatile and dependent on concrete actions from policymakers, with uncertainty persisting until the executive order is formally signed and its implications clarified [7] - The sharp increase in Tilray shares underscores the industry's sensitivity to federal reform signals and the rapid shifts in investor sentiment regarding regulatory changes [8]