Tilray and Cannabis Stocks Soar Ahead of Expected Trump Executive Order on Marijuana

President Donald Trump will sign an executive order at 1:30 p.m. Eastern Time. (Getty Images)

Key Points

• Cannabis stocks increase sharply Thursday on anticipation of an executive order to reclassify marijuana.
• Tilray Brands and Canopy Growth trade significantly higher.
• The potential reclassification would move marijuana to Schedule III from Schedule I, indicating lower abuse potential.

Cannabis stocks rose sharply Thursday on anticipation that President Donald Trump will sign an executive order to reschedule marijuana as a lower-class drug.

Trump’s schedule showed he will sign an executive order at 1:30 p.m. Eastern time. The order is about reclassifying marijuana, MarketWatch reported, citing a White House official.

The White House didn’t immediately respond to Barron’s requests for comment.

Tilray Brands climbed 16% on Thursday, while U.S.-listed shares of Canopy Growth gained 19%. The AdvisorShares Pure US Cannabis exchange-traded fund rose 4.5%.

Cannabis stocks have swung wildly since last week when reports suggested Trump could reclassify marijuana as a Schedule III drug from Schedule I. Other Schedule I substances include highly addictive drugs with no accepted medical use, such as heroin, while Schedule III substances are considered to have lower potential for abuse.

A White House official this past Friday told Barron’s that no final decision had been made.

Write to Nate Wolf at nate.wolf@barrons.com