Shares of Smiths Falls-based Canopy Growth and other marijuana companies shot up on Tuesday on news that the U.S. Drug Enforcement Administration (DEA) might change how it sees cannabis, classifying it as a less risky drug.
The DEA plans to move marijuana from Schedule I to Schedule III.
Currently, Schedule III drugs include things like testosterone and anabolic steroids, while Schedule I drugs include LSD and methaqualone.
The change would acknowledge that marijuana can be used for medical purposes, but it wouldn’t make it legal for everyone to use recreationally.
Many marijuana stocks have been steadily moving up this year investors hope for changes in the rules around marijuana, and wide-spread legalization of the drug for recreational use south of the border.
David Klein, chief executive officer of Canopy Growth, told Bloomberg that the move couldn’t come at a better time for the company.
The stock moved up 80% in trading yesterday, closing at $20.45 CAD.
More to come…