Core Insights - The U.S. marijuana industry has faced stagnation due to federal inaction on reclassification or decriminalization, with cannabis classified as a Schedule I drug, limiting research and access to banking services [1][2] - President Trump's potential executive order to reclassify marijuana as a Schedule III substance could significantly impact the industry, attracting institutional investors and improving banking access [3][5][8] Industry Overview - The U.S. marijuana market is valued at approximately $32 billion, with state-level sales exceeding $30 billion annually, yet investors remain cautious due to the Schedule I classification [3][8] - Reclassification could double industry growth rates to 20% annually, although full effects may take 12 to 18 months due to rulemaking delays [8] Company Impacts Tilray Brands (TLRY) - Tilray could benefit from eased U.S. entry and the ability to import medical products interstate, with fiscal 2025 revenue reaching $821 million, up 4% [9] - The end of the 280E tax penalty could boost after-tax profits by 40% to 70%, allowing for expansion [10] Canopy Growth (CGC) - Canopy Growth, already profitable in Canadian medical sales, could see significant savings of $50 million to $70 million annually from eased tax burdens, funding U.S. market entry [12][13] - The company aims for a 30% increase in EBITDA by 2027, leveraging its global presence [13] Aurora Cannabis (ACB) - Aurora Cannabis stands to gain from reclassification, which would ease research and distribution of its pharmaceutical-grade products [14] - The company reported a fiscal Q2 2026 net income of $81 million Canadian, with potential for 15% revenue growth [15] Legislative Context - Trump's executive order aims to bypass administrative hearings and expedite marijuana's shift to Schedule III, which recognizes moderate abuse potential and accepted medical value [5][10] - While reclassification does not fully legalize marijuana, it could unlock significant changes in the industry landscape [7][10] Market Sentiment - Following news of the potential executive order, cannabis stocks like Tilray, Canopy Growth, and Aurora Cannabis saw double-digit percentage gains, indicating renewed investor interest [4][6]