Tilray Brands, Inc. (TLRY) shares rocketed higher Friday after reports surfaced that President Donald Trump intends to reclassify marijuana as a Schedule III drug, a significant shift in federal cannabis policy.
What's Behind the Move
The reclassification would put marijuana in the same federal category as certain prescription painkillers. Here's the thing: it wouldn't actually legalize or decriminalize cannabis at the federal level. But it would reduce federal oversight, open doors for expanded research, and likely improve profitability for licensed cannabis operators who've been navigating a complicated regulatory landscape.
According to reports, Trump discussed the plan during a recent phone call with House Speaker Mike Johnson. This isn't coming out of nowhere. Trump signaled interest in marijuana reclassification back in August and has indicated he wants to finish what former President Joe Biden started.
The timing is interesting. The cannabis industry has been dealing with whiplash from shifting federal policies. Just last November, Congress passed a funding bill with provisions to re-criminalize several THC-infused and hemp-derived products, creating fresh uncertainty across the sector.
Stock Movement: Tilray shares were trading 27.40% higher at $10.72 at the time of publication, according to market data.
