May 26th, 2024

Canadian cannabis stocks rally as U.S. takes another step toward reclassifying pot

By The Canadian Press on May 16, 2024.

Canadian cannabis stocks are rallying after U.S. President Joe Biden announced the country had taken a "major step" toward reclassifying pot as a less dangerous drug.A man checks out a sample at a cannabis store in Winnipeg on October 17, 2018. THE CANADIAN PRESS/John Woods

TORONTO – Canadian cannabis stocks are rallying after U.S. President Joe Biden announced the country had taken a “major step” toward reclassifying pot as a less dangerous drug.

Shortly after he revealed on X, formerly known as Twitter, that the country had formally moved to reclassify the substance, Edmonton-based Aurora Cannabis Inc. and Moncton-based Organigram Holdings Inc. each saw their share prices jump almost nine per cent.

Tilray Brands Inc.’s shares were up just shy of six per cent to $2.97, while Canopy Growth Corp.’s share price rose more than 15 per cent to $15.53.

David Klein, chief executive of the Smiths Falls, Ont.-based Canopy, says the move is a “major leap forward” because it could help tackle the restrained state of the U.S. weed industry and even pave the way for federal legalization.

Meanwhile, Beena Goldenberg of Organigram positioned the latest move as long overdue and said it was the first substantive change to the country’s federal cannabis policy in more than 50 years.

Last month, The Associated Press reported that the U.S. Drug Enforcement Agency was planning to shift cannabis from a Schedule I drug like heroin and LSD to a Schedule III drug like ketamine and some anabolic steroids.

This report by The Canadian Press was first published May 16, 2024.

Companies in this story: (TSX:WEED, TSX:ACB, TSX:TLRY, TSX:OGI)

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