A version of this article originally appeared in Quartz’s members-only Weekend Brief newsletter. Quartz members get access to exclusive newsletters and more. Sign up here. Cannabis companies have heard plenty of promises before. Federal legalization always seemed just around the corner, only to stall in Congress or get tangled in bureaucratic delays. Investors who bought into the hype got burned. Stock prices collapsed. The industry became synonymous with broken promises. But President Donald Trump's De ...

Core Viewpoint - The stock market experienced an unexpected decline following the White House's decision to reclassify marijuana as a less dangerous drug [1] Group 1 - The reclassification of marijuana is seen as a significant regulatory change that could impact the cannabis industry [1] - Investors reacted negatively to the news, leading to a drop in stock prices across various sectors [1] - The move may influence future legislation and market dynamics related to cannabis [1]

Core Insights - Speculation regarding President Trump's potential policy changes on cannabis classification led to temporary increases in cannabis stock prices, including Trulieve Cannabis, Curaleaf Holdings, Tilray Brands, and Green Thumb Industries [1] - On December 18, Trump signed an executive order that facilitates the rescheduling of marijuana, which is significant for the regulatory landscape affecting marijuana businesses [3] - Following the announcement, cannabis stocks experienced a sharp sell-off, raising questions about potential buying opportunities [3] Regulatory Changes - The U.S. drug policy is governed by the Controlled Substances Act (CSA), which classifies substances into five schedules based on their criteria [4] - The executive order reclassifies marijuana from a Schedule I narcotic to a Schedule III substance, aligning it with anabolic steroids and ketamine [5] - This reclassification could reduce barriers for cannabis companies in clinical research and financial regulation, potentially improving banking relationships [9] Industry Implications - Rescheduling marijuana to Schedule III may lead to enhanced integration of cannabis and CBD into modern medicine, opening avenues for partnerships between cannabis companies and pharmaceutical firms [9]

President Trump has signed an executive order to reclassify marijuana from a schedule one to a schedule three drug. While not making it fully legal, it would ease federal restrictions. Joining us right now with what this means for the marijuana industry and personal consumption is Kevin Sabbat.He is the CEO of Smart Approaches to Marijuana, a former White House Drug Policy Advisor, and he's the author of One Nation Under the Influence. Kevin, first of all, thank you uh for being here. It's been a while sinc ...

Group 1 - The University of Louisiana System has formed a presidential search committee for the University of Louisiana at Lafayette to guide the search process following the resignation of President Joseph Savoie after 17 years [1] - The committee will include representatives from the UL Lafayette community and key stakeholders, with the first meeting scheduled for January 14 [1] Group 2 - President Donald Trump signed an executive order to expedite the rescheduling of marijuana from Schedule I to Schedule III, aiming to expand cannabis research [2] - The rescheduling process was initially started by former President Joe Biden but remained unresolved when Trump took office [2] Group 3 - U.S. stocks experienced a significant rise following a positive inflation report, which may influence the Federal Reserve's interest rate decisions next year [3] - Micron Technology's strong profit report contributed to a temporary halt in the decline of AI stocks, with the S&P 500 increasing by 0.9% and the Nasdaq composite leading with a 1.5% rise [3] - The Dow Jones Industrial Average rose by 124 points, or 0.3%, indicating overall market strength [3]

Industry Overview - The marijuana industry is currently experiencing volatility, with potential changes in legislation under the Trump administration that may lead to the reclassification of marijuana for therapeutic use [2][3] - The cannabis sector is described as "the wild west," characterized by a lack of standardization and a diverse range of products from various suppliers, making it challenging for companies to achieve steady revenue growth [5][6] Company Insights - Company Tillray operates in the marijuana space, including CBD oils and beverages, and is noted as the fourth largest craft brew company in the U.S. [3] - Despite the potential for short-term opportunities due to legislative changes, Tillray faces significant challenges in standardizing its products and maintaining profitability [5][6] - Tillray's sales were approximately $830 million last year, with growth in the mid-single digits, but the company reported a loss of around $2 billion, which continues to pressure its equity [8] Market Dynamics - The cannabis ETF has seen a decline of over 85% from its peak, indicating a loss of enthusiasm in the market despite positive headlines regarding legalization [6] - Positive news in the marijuana sector often leads to short-term price increases, but these gains are not sustainable due to the industry's profitability challenges [7]

Core Viewpoint - Cannabis stocks experienced a rally following reports that President Trump is expected to sign an executive order rescheduling marijuana from Schedule I to Schedule III, which could lead to significant financial benefits for the cannabis sector [1]. Group 1: Tax Implications - Section 280E of the tax code currently prevents cannabis businesses from deducting standard business expenses, resulting in effective tax rates often exceeding 70% [2]. - Rescheduling cannabis to Schedule III would alleviate the burden of Section 280E, potentially allowing many cannabis businesses to achieve profitability for the first time [3]. Group 2: Market Reaction - Cannabis stocks were trading on above-average volumes and trending on social media as investors awaited an official statement from President Trump [5]. - Investors can track the sector through the AdvisorShares Pure US Cannabis ETF (NYSE:MSOS) and individual stocks of major companies such as Tilray Brands, Inc. (NASDAQ:TLRY), Canopy Growth Corp. (NASDAQ:CGC), and others [5]. Group 3: Legal Considerations - While rescheduling would ease research restrictions and tax burdens, it does not eliminate federal criminal penalties for recreational use, and marijuana would still remain illegal under federal law [4]. - The conflict between federal law and state laws that have legalized cannabis will continue to exist [4].

Core Viewpoint - The Trump administration is considering reclassifying marijuana from a Schedule I drug to a Schedule III drug, which would reduce restrictions and potentially enhance research opportunities in the cannabis industry [1][2]. Group 1: Market Performance - Shares of cannabis companies have seen significant increases following the news of potential reclassification, with notable jumps in stock prices since the announcement [3]. - Specific companies such as Tilray Brands Inc., Cresco Labs Inc., Canopy Growth Corp., Curaleaf Holdings Inc., and Trulieve Cannabis Corp. are highlighted as experiencing substantial stock performance improvements [4]. - For example, one company reported a five-day growth of 123.11% and a closing increase of 34.93% on Tuesday [5]. Group 2: Regulatory Context - Currently, marijuana is classified as a Schedule I drug, indicating it has no accepted medical use and a high potential for abuse, alongside substances like heroin and LSD [7]. - In contrast, Schedule III drugs, which include substances like anabolic steroids and ketamine, are considered to have a moderate to low potential for dependence [8]. - Reclassifying marijuana would not change its federal legality but would position it as less dangerous than Schedule II drugs, which include substances like cocaine and fentanyl [8]. Group 3: Historical Context - Despite the recent stock performance, cannabis stocks remain significantly lower than their highs in early 2021, during a peak period of excitement for marijuana reform [6].

The company and many of its peers saw dramatic lifts on the back of new Presidential remarks.Investors caught quite the serious buzz from marijuana stocks on Tuesday, thanks largely to President Trump's strongest indication so far that he will get the ball rolling on the drug's rescheduling. One title that wafted well higher in price was Curaleaf Holdings (CURLF +23.18%), which was up by almost 25% when the smoke cleared. Will the Trump card be played?This came in an answer to a reporter's question whether ...

Core Viewpoint - President Trump's consideration of reclassifying marijuana as a Schedule III controlled substance could significantly impact the cannabis industry, particularly benefiting companies like Tilray Brands [1][2]. Company Summary - Tilray Brands' stock surged by 27.5%, closing at $13.99, following Trump's announcement, while the broader market showed mixed performance [1][2]. - The company's market capitalization stands at $1.3 billion, with a day's trading range between $10.52 and $14.54, and a 52-week range of $3.51 to $23.20 [2]. - Tilray's gross margin is reported at 20.17%, indicating the company's profitability potential despite current financial challenges [2]. Industry Summary - The potential reclassification of cannabis could lower the tax burden on cannabis companies, marking a significant step towards full legalization, which is a primary goal for investors in the sector [2][4]. - Previous administrations have considered reclassification, but the current political climate shows bipartisan support for this policy change, increasing the likelihood of its implementation [4]. - If legalization occurs, it is expected to transform Tilray's business model and overall market position, making it a potentially worthwhile investment for those with a risk tolerance and long-term perspective [4].