US Cannabis Stock Prices up 25% Since Publication of Rescheduling Recommendation
US Cannabis Stocks Surge Over 25% Following the Publication of Cannabis Rescheduling Recommendation.
US cannabis stock prices have rallied once again this week following the publication of the fully unredacted 252-page cannabis rescheduling recommendation.
While speculation and punditry has moved at breakneck speed since its publication, many experts suggest that the arguments made in the Department of Health and Human Services’ recommendation would make it very hard for the Drug Enforcement Administration (DEA) to reject.
Since the publication on January 12, US cannabis stocks have shot up more than 25%, according to New Cannabis Ventures’ American Cannabis Operator Index.
From lows in late December, this increase has been even more striking, seeing the index increase more than 50%.
Since the previous close, Ayr Wellness, Jushi Holdings, Trulieve Cannabis Corp, Planet 13 Holdings, and Cresco Labs have all seen double digit increases, with Curaleaf, TerrAscend, Verano Holdings and Green Thumb industries also seeing healthy single digit rises.
Jordan Tritt, CEO of The Panther Group suggested that rescheduling would likely drive a renewed torrent of capital into the industry.
“The federal government’s acknowledgment of cannabis’s potential benefits is likely to open the floodgates for increased capital availability. Banks, investment firms, individual investors, and research organizations are expected to enter the cannabis space more actively. This influx of capital represents a watershed moment for the industry, signalling a shift towards broader acceptance and recognition.”
Despite this renewed optimism, a recent report by the Congressional Research Service has suggested that even if cannabis is moved to Schedule III, it would not automatically bring state-legal marijuana into compliance with federal law.
The study discusses the potential impact on medical and recreational cannabis industries, emphasising that federal prosecution could still occur, especially if the appropriations rider protecting medical cannabis lapses.
