Cannabis Stocks Retreat After US Rescheduling Move
Major cannabis firms saw shares drop up to 10 percent today after an initial rally. Investors remain cautious as the federal reclassification currently applies only to medical products.
Shares of major cannabis companies experienced a volatile trading session in the United States on Thursday, as initial optimism regarding federal rescheduling gave way to concerns over the policy's limited scope. While the market initially surged on news of the reclassification, gains were quickly erased as investors analyzed the specific legal nuances of the Department of Justice's announcement.
By afternoon trading, CRONOS GROUP INC, AURORA CANNABIS INC, CANOPY GROWTH CORP, and TILRAY BRANDS INC all saw their stock prices slump between 6% and 10%. The reversal followed an earlier rally sparked by a social media post from Acting Attorney General Todd Blanche, who confirmed that the Department of Justice would immediately move FDA-approved and state-licensed marijuana from Schedule I to Schedule III under the Controlled Substances Act.
