Bullish indicating open at $55-$60, IPO prices at $37
Investing.com -- Canopy Growth Corp (NASDAQ:CGC) stock surged 19.2% Monday following reports that President Donald Trump is considering reclassifying marijuana as a less dangerous drug, potentially transforming the cannabis industry’s regulatory landscape.
Other major cannabis companies also rallied on the news, with Tilray (NASDAQ:TLRY) jumping 17.7%, Cronos Group (NASDAQ:CRON) rising 14.3%, Aurora Cannabis (NASDAQ:ACB) gaining 8.7%, and SNDL (NASDAQ:SNDL) climbing 6.6%.
According to The Wall Street Journal, citing sources familiar with the matter, Trump expressed interest in changing marijuana’s federal classification during a recent $1 million-per-plate fundraiser at his New Jersey golf club. Such a reclassification would significantly ease restrictions on buying and selling cannabis products, potentially boosting profitability across the industry.
The potential policy shift comes after cannabis companies have contributed millions to Trump’s political groups. Trulieve CEO Kim Rivers was reportedly among the attendees at the fundraiser, where she advocated for the reclassification and expanded medical marijuana research.
The Biden administration had previously initiated efforts to reclassify marijuana but did not complete the process before leaving office. A federal reclassification would represent a major milestone for the cannabis industry, which has faced significant regulatory hurdles despite growing state-level legalization.
The stock price movements reflect investor optimism about potential federal reforms that could open new markets and reduce operational complications for cannabis businesses operating across state lines.
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