Dec 18 (Reuters) – Shares of cannabis firms rose in premarket trading on Thursday, driven by expectations that U.S. President Donald Trump will sign an executive order easing federal regulations on marijuana.
Central to the debate over marijuana regulation are calls to reclassify cannabis as a less dangerous drug, a move that would represent the most significant change in marijuana policy since 1970.
Such a reclassification will not legalize cannabis but could lower tax burdens for firms, accelerate research, enable standardized drug development and improve access to capital.
U.S.-listed shares of Tilray gained nearly 5%, SNDL rose 3%, Canopy Growth more than 5% and AdvisorShares Pure US Cannabis ETF was up 6.5% before the bell.
A reclassification would move marijuana from Schedule I, which includes substances like heroin, ecstasy and peyote that have no accepted medical use, to Schedule III, which covers substances with a moderate to low risk of physical or psychological dependence.
Trump is considering a Medicare pilot program that would provide some seniors access to CBD, according to reports.
Rescheduling and Medicare coverage would likely attract investments from financial institutions and other investors.
(Reporting by Puyaan Singh, Christy Santosh, additional reporting by Sriparna Roy in Bengaluru; Editing by Sriraj Kalluvila and Saumyadeb Chakrabarty)
